Are you a business professional begging with recurring payments or some of its features? If you're still wondering why you need to set up recurring payments in QuickBooks Desktop to vendors or from customers or clients, you are at the right place.

Not only will we explore the importance of recurring payments, but we will also see how it works. Therefore, continue reading till the end.

But First, What is a recurring payment?

Recurring vendor payments, often known as recurring billing, are payment plans that renew on a predetermined schedule several times. When you pay a vendor for a regular service, money will be automatically deducted from your credit or debit card. These regular payments can be automatically recorded in QuickBooks Desktop by using a transaction that has been memorized.

How Recurring Payments in QuickBooks Desktop Work?

Recurring payments in QuickBooks Desktop are dynamic and automated processes that include various steps. Here is an example of recurring payments to vendors.

  • You set up the recurring payment in QB and decide on the amount, frequency, and date of payment.
  • When the set date arrives, the payment is debited from your account.
  • The money is received by the vendor
  • You get an email notification each time a payment is processed from your account.
  • You can view the logs for recurring payments on the Manage Recurring Payments page.
  • As per your initial setup, the payment repeats after a certain amount of time.

The above cycle repeats until you stop, pause, or delete the recurring payments.

Set Up Recurring Payments in QuickBooks Desktop

Here's how you can set up recurring bills in QuickBooks Desktop in easy steps.

1.    Navigate To The Gear Icon

Go to the Gear icon at the top of the screen first. Next, pick the Recurring transactions option, click it, and then press the new button.

2.    Go to the Sales Receipt.

Click the OK button after selecting the sales receipt under Transaction Type.

3.    Type the Name of the Template and Choose Scheduled

Now, type the name of the template, choose Scheduled as the routine type, and then pick the required Customer.

4.    In the area titled "Interval," choose Monthly.

In the Interval column, select Monthly on the first of every month.

5.    Put in the dates.

Next, provide the beginning and ending dates.

6.    Choose Your Mode of Payment

Next, choose the payment option of your choosing.

7.    Complete the necessary fields.

Enter the requested data.

8.    Save

When you are done, finally click the save and close.

Navigating the QuickBooks Interface

Locating the 'Recurring Transactions' Tab

  1. Access your QuickBooks account: Log in to your QuickBooks account with your credentials.
  2. Navigate to the Gear Icon: Click on the gear icon situated at the top right corner of the dashboard.
  3. Select 'Recurring Transactions': Scroll down and choose 'Recurring Transactions' under the 'Lists' section.

Identifying and Editing Recurring Payments

  1. Review the List: A comprehensive list of recurring transactions will appear.
  2. Select the Appropriate transaction: Identify the recurring payment you wish to halt.
  3. Click 'Edit': Click on the 'Edit' option to modify the transaction details.

The Art of Halting Recurring Payments

Temporarily Stopping a Transaction

  1. Navigate to the 'Type' Field: Within the editing interface, locate the 'Type'
  2. Choose 'Unscheduled': Change the 'Type' to 'Unscheduled' to temporarily stop the recurrence.
  3. Save Changes: Click 'Save' to apply the modifications.

Permanently Discontinuing a Transaction

  1. Access the 'Action' Dropdown: Once again, locate the 'Recurring Transactions' list.
  2. Choose 'Delete': Click on the 'Delete' option within the 'Action' dropdown.
  3. Confirm Deletion: Confirm your decision to permanently stop the recurring payment.

Verifying Changes Made

After implementing these changes, it's crucial to verify that the recurring payment has indeed been halted. Double-check your transaction list to ensure the modifications reflect accurately, maintaining the integrity of your financial records.

Can I reactivate a halted recurring payment?

The process is reversible. To reactivate a recurring payment, follow the same steps mentioned earlier, but instead of choosing 'Unscheduled' or 'Delete', select the appropriate recurrence pattern.

Are there any implications for previous transactions?

Halting recurring payments does not retroactively affect past transactions. Your previous financial records remain intact.

Conclusion

Managing recurring payments is a nuanced task, but armed with the right knowledge, it becomes a seamless process. This guide empowers you to take control of your financial transactions, ensuring they align with the ever-changing dynamics of your business.

The above blog will guide on why you need to set up recurring payments in QuickBooks Desktop and how to do so. Moreover, it will also elaborate on how the recurring payments work. If you have a query or would like a QB expert to guide you, reach out to our QB ProAdvisors.

Our QB ProAdvisors are active 24/7 for your assistance and real-time support. Just dial +1(800) 580-5375!