Welcome to the Fit Small Business Xero training course. In this lesson we're
going to cover how to mark bills that have been paid online in Xero. To follow
along with me, log in to your Xero account now, or click the link below this video
for a free 30-day trial of Xero. You can also click this link to access our full
Xero course and other helpful resources. Let's get started.
In order for you to keep track of what you owe to your suppliers, otherwise
known as your accounts payable balance, you must enter your bills into Xero.
In the previous lesson we showed you how to do this. You can click here to access
this lesson. The other key component to having an accurate accounts payable
balance is to mark your bills as paid once you have sent the payment. In this
lesson we will show you how to record full and partial bill payments, whether
you have paid online or with cash. We'll be covering check payments in the next
lesson. You can click here to access this lesson. From the Xero dashboard go ahead
and click on accounts and select purchases. Bills are grouped into four
categories here: draft, awaiting approval, awaiting payment, and overdue. Bills that
have been entered in a draft status have not been submitted for approval or
payment. Please note that bills in a draft status do not impact your
financial statements. Bills awaiting approval have been submitted to a user
who has approver permissions. Check out our how to invite users tutorial to
learn which users can approve bills. You can click here to access this lesson.
Please note, similar to bills and a draft status, bills that are awaiting approval
do not impact the financial statements. Bills awaiting payment have been
approved and can be paid via cash, ACH, debit card, or check. Please note bills
awaiting payment do impact the financial statements. And finally overdue bills:
bills that fall into this group were not paid by their due date. These bills have
been approved and can be paid via cash, ACH, debit card,
or check. Please note overdue bills do impact the financial statements. So you
can either click on the bills awaiting payment to display bills that you'd want
to pay, or the overdue bills group. Once you do that, a list of the bills that can
be authorized for payment will display. So we'll go ahead and select a bill that
we'd like to make a payment and you can do this by simply just clicking on the
row of the bill and it will display. So here is the top of the bill, if you
scroll down here is the actual payment section that we need to discuss here.
The first field is the amount paid: this field will auto populate with the amount
that was entered for the bill. If you are going to pay a different amount, then you
can enter the amount that you would like to pay in this field. Otherwise there is
no need to make any changes if you want to pay the bill in full. Day paid: this
date should be the date that the money was withdrawn from your bank account.
If you don't have that date, just be sure to use a date that's closest to the
withdrawal date. Please note using the correct dates will
ensure a successful bank reconciliation. Paid from: in this field you want to
indicate the bank account that the payment will be made from. The reference
field is optional. However, I do recommend that you indicate the payment type: cash,
online, ACH, or debit. This information could come in handy when reconciling
your bank account. The pay by check box: we will walk through how to make a
payment via check in the next lesson. You can click here to access this lesson.
And finally the add payment button: once you've completed all of the fields you
can click this button to add this payment. In the background, Xero will mark
the bill as paid which will automatically update your accounts
payable balance. Once the payment has been accepted you should see a
notification similar to this one here. To confirm the bill has been marked as paid you
can click on the pay tab, and then click on the bill that you marked as paid,
and you will notice a paid stamp in the upper left-hand corner here. So that indicates
that this bill has been marked as paid in Xero. That wraps up the lesson on how
to mark bills paid online in Xero. To access our full Xero course or any of
the other lessons in this series click this link. You can also find a link below
this video for a free 30-day trial of Xero. If you have feedback about this
course or if you have any questions please
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