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.

Receiving a Bill of Lading

In Gnucash

Do nothing.

In file cabinet

File in Bill of Lading folder.

Receiving a Bill

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

Receiving a Statement

In Gnucash

Do nothing.

= In file cabinet

• File in vendor folder