Enter vendor payments to record when you pay a vendor bill. The payment records the payment date and the amount paid. By tracking payments you make to vendors, you know how much money you owe to specific vendors When you record a vendor payment, the payment posts to the journal accounts affected by the payment.
Paying bills reduces the total amount of money you owe to vendors. The vendor payment posts a $100 decrease of the amount in the Accounts Payable account. The bill payment also decreases the total amount of money in the bank account you pay from. The vendor payment posts a $100 decrease of the total amount of funds in the Checking account.
These journal lines are posted by the payment:
| Account | Debit | Credit |
|---|---|---|
| Accounts Payable (AP) | $100 | |
| Checking | $100 |