Receiving and Paying Bills

Definitions

 * Vendor
 * Someone we owe money to, for instance a utility company.


 * Bill
 * Document from a vendor showing us new money that we owe.


 * Statement
 * Document from a vendor showing us how much money that we owe -- old money and new.


 * Bill of Lading
 * A document given to us when a service is performed that will later be certified and turned into a bill.

In Gnucash
Do nothing.

In file cabinet
File in Bill of Lading folder.

In Gnucash

 * Open appropriate accounts payable account (match the vendor name or use Misc)
 * Enter the amount into the expense field
 * Transfer field should be the appropriate expense account.

In file cabinet

 * If there is an associated bill of lading, match it to the bill and fasten them together.
 * File in the Accounts Payable folder

Paying a Bill

 * Physically write the check
 * Write check number, date, and amount on bill

In Gnucash

 * Open the main checking account
 * Enter the date
 * Enter the check number
 * Enter the vendor name in description
 * Enter the appropriate accounts receivable account (match the vendor name or use Misc)
 * Enter the amount in the withdrawl field

In file cabinet

 * File in vendor folder

In Gnucash
Do nothing.

In file cabinet

 * File in vendor folder