What's the difference between paying a bill and a payment to a supplier

Jon_1902808

Just wondering when I incur a business cost should I a) create a new bill and then create a payment or b) create a new payment to a supplier. Is there any difference in the accounting outcome?

Zappy

The main reason to create a bill in the system is a prompt to yourself to pay. Another reason is if you are using the accrual basis for gst. If you are paying gst on a cash basis and if you are confident of being able to keep track of payables then you might as well write a cheque (or enter a direct debit) to pay the account. You might use bills if you have a different person entering the accoubts from the person whom is paying them. Kevin t:0407744914

Jon_1902808

Thanks for that Kevin. I've usually paid already at POS so 'payment to a supplier' records that. And I'm not registered for GST.

Zappy

Happy to help Jon. I had a client years ago insisted on entering bills already paid when they reported on cash. I tried to explain how it was double handling everything but they wouldnt understand.

Jon_1902808

Having just printed out  an income tax summary, I notice that any payments to suppliers are not included among the expenses in the report! That's not good :-( How do I rectify that?

Nick_9187524

Hi Jon and Kevin, I have a similar question and glad that its being discussed here. To recap on what you have said here.

1. If it is just expenses for the business (parking, stationary etc) then we should just put in as 'make payment'. If it is a suppliers invoice which will be paid later, then it should be entered as a 'bill'?

2. Following on from Jon's concern above. How do we make sure that our reports (P&L and BAS) picks up these costs and the relevant GST correctly.

Zappy

Jons concerns are not relevant if you are reporting on cash. As long as the payment is entered the gst will be picked up. Its the way the sytem is designed to work.

Nick_9187524

Kevin, can you respond to the question 1 above. Thanks

Zappy

Nick theres no option "make payment". Delighted to be of assistance.

Nick_9187524

1.So what is the difference between 'make payment' and 'Bill'? They seem very different!
2.How can you make a quick entry to make sure you capture general business expenses (parking, stationary etc)

Nick_9187524

Kevin,

The videos on http://go.reckon.com/newreckonone-videos/ show both make a payment and enter a bill. That said, the video on 'make a payment' is acturally 'make a cash payment'. Do you have access to the correct video link?

Cheers,

Nick

Zappy

Nick, I think you mean "write cheques". There is no option to "make payment". If you write a cheque then you are making a payment. If you pay a bill then you are paying a bill. Writing a cheque doesn't require a bill. Paying bills does. Have you opened the box of software? There's lots thats complicated about Reckon but this is one of the simpler things. 

Zappy

Nick I noticed you are talking about Reckon One. This is the Reckon Business Range board. I am referring to the boxed software not Reckon One. It's a completely different program. Glad we cleared that up. 

Jon_1902808

Are there any reasons why 'payments to suppliers' are not showing up in any reports? All accounts/Categories/payees are ticked in the report customisation.
If instead I create a bill and payment, then that DOES show up in the report.

Jon_1902808

*quietly whimpering* ;-)

John G

Hi Jon,

Does the Report Suppliers & Payables > Transaction list by Supplier, provide you with what you want?

You can filter this report for payment items - like Bill Pmt - Cheque, Cheque (for Write Cheque ), credit Card charges and Liability Cheque for payments of liabilities withheld from processes like Payroll.  Memorise it for easy use at a later time.


regards,
John