Payables and Expenses Workflow Flashcards

A vendor sends a bill with net-30 terms. Which QBO feature automatically calculates the due date when you enter the bill?

Answer: Terms field on the bill form

The Terms field on the bill form uses the vendor's payment terms to automatically calculate the due date from the bill date.

When using the 'Pay Bills' screen in QBO, what does checking the 'Auto' checkbox next to a bill do?

Answer: Applies available vendor credits automatically

The Auto checkbox on the Pay Bills screen automatically applies any available vendor credits to reduce the amount owed on that bill.

A client wants to track mileage as a business expense in QBO. Which feature should you direct them to use?

Answer: Mileage tracking under the + New menu

QBO has a built-in Mileage tracking feature accessible from the + New menu that calculates reimbursable mileage at the IRS rate.

Which report in QBO shows all outstanding bills grouped by how many days they are past due?

Answer: Accounts Payable Aging Summary

The Accounts Payable Aging Summary groups outstanding bills into aging buckets (Current, 1-30, 31-60, etc.) to show overdue amounts.

A bill was entered in QBO with the wrong vendor. What is the correct way to fix this?

Answer: Open the bill and change the Vendor field directly

In QBO you can open an existing bill and change the Vendor field directly, then save, without needing to delete or void it.

When recording a credit card expense in QBO for a business lunch, which field determines how it affects financial reports by department?

Answer: Class field

The Class field segments transactions by department or business unit, enabling profit-and-loss reporting by class.

A vendor offers a 2/10 net 30 discount. In QBO, where do you set this up so early-payment discounts are captured automatically?

Answer: Vendor profile under Payment terms

Setting the vendor's payment terms (e.g., 2% 10 Net 30) in the vendor profile allows QBO to remind you of the discount window when paying bills.