and now it's time to learn how to record writing checks from our bank account in QuickBooks writing
checks is absolutely not the same thing as paying bills paying bills and QuickBooks is an accounts
payable function and managing your relationship with vendors in the accounts payable section is a
different part of this course paying bills means you're paying for a service that we received in
the past a service that we received before the day that we're paying we're paying bills that
were previously recorded into QuickBooks as bill entries for past transactions the writing checks
feature in QuickBooks is the exact opposite you only open the write a check swing dough
if you are paying at the moment you receive the product or service so try to remember writing
a check means you are paying immediately for example on March 30 Holden wrote check number
102 ups for a delivery done exactly on March 30 that means hold and paid them immediately and
the appropriate window to record this transaction is the right of checks window it's very simple to
copy this information into the right of checks window but one thing you must be aware of this
is a handwritten check a handwritten check means it's not printed from QuickBooks which means at
the moment you record this check you have to put the check number in the check number field and
you have to make sure that the check number field is showing by clicking the appropriate command in
the ribbon from the main menu click banking write a check make sure the main tab is selected so that
you can see the print later command in the ribbon usually this command is checked marked if it's
the first time you're opening this window if this command has the check mark in it it means you're
not physically able to record the check number you must click to remove the check mark in the print
later command so that you are physically able to type in the number of the handwritten check in
this case it's number 100 the date of this check is March 30th and the vendor whom we're paying is
UPS the money amount we're paying is five hundred dollars and we push tab to save the money in the
money field notice when we save the money in the money field QuickBooks automatically writes out
the money amount in words the way it would be on a handwritten check the last piece of information
you have to put is the reason why we are paying the vendor we are paying ups for a delivery we
move the mouse to the bottom left directly under the word account and we click once to bring the
pull down arrow we click on the pull down arrow and we choose the account in the chart of accounts
that represents the reason why we are paying UPS in this case we're paying ups for delivery
expense so that would be the ledger account that we choose when we record the check after we click
Save cash and bank should decrease because we paid five hundred dollars from cash and bank
and delivery expense should show up for the first time on the trial balance as five hundred dollars
when we click Save and close we open the trial balance and we see delivery expense has showed
up in the trial balance for the first time as five hundred dollars if we double-click cash and bank
we can look at the very last transaction that was recorded and we see on March 30th we recorded a
check to UPS for delivery expense which reduced the bank count by five hundred dollars now let's
try this one on March 31 Holden wrote check number 101 to verizon for a prepaid phone card seven
hundred dollars remember this is a handwritten check not printed from QuickBooks so you have
to make sure that the command in the ribbon is not checked off to make sure we're able to put
in the check number from the main menu we click banking write a check notice quickbooks remembers
that the last check was check one hundred and suggests sis check number is 101 we agree with
that and therefore we won't change it click on the date box to put the date as March 31 the
vendor in this case is verizon and the money amount is seven hundred dollars push tab to
save the money field and QuickBooks will write it out in words like a handwritten check now we have
to tell QuickBooks the reason why we're paying verizon seven hundred dollars move to the bottom
left and click once under the word account click on the pull down arrow and choose the account
within our chart of accounts that represents the reason why we're paying verizon in this case it's
telephone expense when we click Save and close we can see that telephone expense has shown up on the
trial balance for the first time is seven hundred dollars when we double-click cash and bank we can
see that the very last transaction is March 31st check 1012 verizon and it reduced our bank balance
by seven hundred dollars it is very important to remember that any reduction to the bank account
can be recorded in the right of checks window this is true even if you're not physically writing a
check for example on april one holden withdrew from an ATM machine three hundred dollars cash
to buy new supplies from staples the unique transaction number is written on the source
document and in this case the source document is the ATM slip so we will use this number to
identify the transaction from the main menu click banking write a check the date is April one and
remember instead of putting a check number you put the number on the ATM slip because the ATM slip in
this example is the source document and the number on the ATM slip is the unique transaction number
that identifies the eight April one withdrawal the people who got the cash were actually staples
because they're the ones whom hold and paid the cash to he took 300 from the bank account and in
the bottom left of the window he's going to click and choose supplies because the reason the money
came out of this bank account was because the money paid for new supplies so we have all the
information we need for this ATM withdrawal and when we click Save and close we notice supplies
has shown up on the trial balance for the first time as three hundred dollars and cash and bank
has been reduced by three hundred dollars for this ATM withdrawal if we double-click cash and bank we
can see April one is the latest transaction in the account and it reduces the bank account by three
hundred dollars and I can stretch the column wider to make sure I can see the number on the ATM slip