Here's how to record a payment that you've made to a supplier against a series of bills that you've added in FreeAgent.
Navigate to the 'Banking' tab at the top of the screen and select 'Bank Accounts' from the drop down menu.
Choose the relevant bank account from the list of accounts.
Let's say you have made a payment of £750 to pay off two bills, one for £175 and the other for £575.
Manual bank entry
You need to enter the payment as two payments for the two bills. So you'd manually enter a payment of £175 and a second payment, on the same day, for £575.
That's easy enough if you're entering payments manually. But what if you're uploading bank statements?
Uploaded bank transaction
When you come to explain the payment of £750, use type ‘Bill Payment’, and choose the bill for £175 to pay off. You can search for this using the amount, the supplier’s name, or the bill reference number.
Select ‘Explain Transaction’ to save this payment.
When you save this transaction, FreeAgent automatically puts in another, a payment for £575, so that your bank statement matches.
Simply explain this as the payment for the second bill, the bill for £575.
That's all there is to it.
You can do this again and again if you are paying off more than two bills together, until you have paid off all the bills you need to.