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Phil_UK
Phil_UK
March 20, 2023
Solved

How do I match a bank transaction against a liability account?

  • March 20, 2023
  • 2 replies
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We use an external payroll company, so when they provide us with the figures we import a journal that debits the salary costs to "expenditure" accounts (salary, Er NI, Er Pension) and credits "current liabilities" accounts ready for the outgoing payments (to the employees, HMRC and the pension company).

 

When trying to match the auto-downloaded bank transactions for the outgoing payments, the transactions in the "current liabilities" accounts don't show up on the list for "find match". It appears that QBO only matches bank transactions to those in the "expenditure" accounts and ignores everything else.

 

How do we match the bank transactions with the transactions in the "current liabilities" accounts?

Best answer by Phil_UK

Actually, I may have found a solution here. Am I able to do this:

 

- Open the transaction on the "Banking" page

- Choose "Find match"

- When it doesn't show up, switch on "Resolve"

- Choose the liability account in "Category" and set the class, location, memo and amount, under "Add resolving transactions"

- Click "Save" to save the match?

 

Will that work, or will that give me duplicate transactions?

 

Many thanks.

2 replies

paul72
paul72
March 20, 2023

Hi @Phil_UK 

 

You will probably need to clear down the Liability Account by raising a Cheque in QBO - this forces the balance into the Bank Register & means it should be matched automatically.

 

Alternatively, enter the Payroll as a Cheque rather than a Journal followed by a Cheque ... https://quickbooks.intuit.com/learn-support/en-uk/other-questions/payroll-monthly-manual-journals/00/1137288

 

Hope this helps.

Phil_UK
Phil_UKAuthor
March 21, 2023

Hi Paul,

 

I'm not sure how to raise it as a cheque rather than a journal, and I see no way to import a cheque. I have 60 staff with salaries charged to various combinations of class and location - in all, my salary journal is around 250 lines long - so I can't do it in 6 lines like your example in the other answer, and need to import this from a .csv file. About 245 lines relate to salary, NI and Pension for the employees, and the other five summarise the totals due to be paid to: staff (one lump that our payroll company set up a BACS transfer for), HMRC (for PAYE/NI), the Pension Company and other odd things like salary sacrifice schemes and AEOs, which are all set to a central class and location for later payment from the related liability accounts.

 

I also need it to show as a liability rather than an expense at the end of each month (and at y/e), as the HMRC and Pension payments don't get paid until the following month.

 

In Sage, I used to simply make a Bank Payment from the liability account, that would clear the liability (as a debit) and credit the bank account. How do I do this within QBO?

 

Many thanks.

Phil_UK
Phil_UKAuthorAnswer
March 21, 2023

Actually, I may have found a solution here. Am I able to do this:

 

- Open the transaction on the "Banking" page

- Choose "Find match"

- When it doesn't show up, switch on "Resolve"

- Choose the liability account in "Category" and set the class, location, memo and amount, under "Add resolving transactions"

- Click "Save" to save the match?

 

Will that work, or will that give me duplicate transactions?

 

Many thanks.

A
Ashleigh1
March 20, 2023

Hello Phil_UK, Thanks for posting on the Community page, So they won't match up because the payroll journal didn't hit the bank, that’s why when you click on find match nothing shows up to match it against. You mentioned the payroll journal debits Salary to expenditure and credit it to Current Liabilities. You will have to manually post the expense to current liabilities instead.

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