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Tuesday, September 13, 2005

A/P Problems.


When I enter bills, it has a section at the top that says a/p account. It’s beside the bill/credit section. Is this supposed to be there? Whenever I enter the bill to the vendor whatever is in that a/p section is what prints in the check register as account monies to be paid from.
How do I fix this?


To your first question, yes this is supposed to be there. Some companies use several A/P accounts for various reasons and this allows them to change between those accounts.

Secondly, I think you are worried for no reason. You see, when you enter a bill you are recording a payable and an expense (assuming that you are on an accrual basis). When you pay that bill you are satisfying the debt (bill) by crediting your cash account (writing a check) the register correctly records the check as going to the A/P account (so it doesn’t record the expense again).

This may be confusing, but it will work correctly.

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