We want our records in QuickBooks to agree with the records our suppliers (vendors) keep. Video 27.

One great report for getting this started is Transaction List by Supplier. It’s a chronological list of every transaction or event that you had with your supplier.

Normally when we pay a bill we include on the cheque stub the reference number of the bill that we would like our payment applied to. So we are saying to our supplier that “this cheque number 29 for $200 is to be applied to your bill (invoice) number 8765”. We put the cheque in the mail.

One type of error is called misapplied bill payment.