Book Keeping Task/QuickBooks/Bills paid by cheque

From PCSAR

QuickBooks allows you to enter Bills and of course to enter Cheques.

When a Bill has been entered, the payment must be recorded by using "Pay Bill" and then select by Cheque. Do not enter the Cheque as you would other Cheques.

If you do enter a Cheque, it will create a double entry. To fix this, delete the Cheque. Then use "Pay Bill" to recreate the Cheque.

The auditors for the 2014-2015 year noted: "Cheques are directly being expensed then the invoices that are being paid by these cheques are being entered in Accounts Payable and expensed again, causing double entry to the expenses. Therefore expenses are being overstated. A decision must be made to either pay invoices by cheque or create Accounts Payable accounts, enter invoices through the Accounts Payable menu and follow through and pay accounts payable through this Accounts Payable menu."