How to pay vendor bill using journal entry
- Firstly create a vendor bill.
- Create a Journal Entry.
Click on Transactions > Financial >Make Journal Entries. Enter the details.
Click Lines tab
Enter debit side and credit side of journal entry
Explain through one example
Account Payable a/c Dr
To Bank a/c Cr
In the debit side select Account payable and enter the amount. (As per the example)
In the name field select the vendor and click add.
On the credit side select the Bank Account and amount. Click on the save button.
- Apply the Journal Entry to the Vendor Bill.
Click on Transactions > Payables > Pay Bills
Enter the checkmark for Use Bill-to Address from Vendor
Tick the Vendor Bills and Journal Entries to be paid
Click Save.
After that bill show the status whether is paid or not.