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C
ChrisBoxer
September 2, 2019
Question

If a Direct debit payment to a Supplier has been wrongly categorised as an Expense, - how do I change it to a Bill Payment?

  • September 2, 2019
  • 1 reply
  • 0 views
Original commenter did not share additional details

1 reply

G
GeorgiaC
September 2, 2019

Hey ChrisBoxer,

 

 

Are you trying to change the transaction type or the category allocated on the transaction?

 

Spent payments added directly from the banking section will always be added as an Expense transaction as the payment has already been made, however you can re-allocate the account or Undo the transaction in the banking and match this to an open bill if you have already created this.

 

Thanks!

C
ChrisBoxerAuthor
September 5, 2019

Thank you for replying, I do hope that you can put me right on this as I'm goin mad here as I seem to be getting deeper and deeper in a mess! Forgive the detail but this is the position:

My MD makes a purchase and eventually a payment from the bank to a supplier.

I enter the supplier's invoice as a Bill in QBO.

In some cases, I mistakenly enter the payment as an Expense and not as a Bill Payment.

So, when I run a P&L report the item is in the report twice (as a Bill and as an Expense)

Thus, Profit figure is understated and Creditors figure in Balance sheet is overstated.

I realise that I can correct the position with a Journal entry but I would really like to correct the error by re-categorizing the 'Expense' as a Bill Payment.

I can't see how to do that in QBO.

Further, I have a Bank feed and QBO seems to follow last times' entry and repeat the error all over again.

Anything you can say to restore at least a portion of my sanity would be so gratefully received!

:smileysad:

 

J
JanyRoseB
September 5, 2019

Thanks for getting back to this thread, ChrisBoxer.

 

Allow me to chime in and help provide some information about correcting the recording transactions in your QuickBooks Online (QBO).

 

I appreciate the detailed information you've added. To correct your accounting books, you can void the expense you've incorrectly recorded. Then, process a bill-payment and make sure that it will link to the correct bill transaction to mark it as closed. 

 

To delete an expense transaction, here's how:

  1. In the left tab menu, select Expenses.
  2. Locate the expense you've recorded.
  3. Click the View/Edit drop-down menu. 
  4. Select Void/Delete. then click Yes.

Once done, you can now apply the bill payment by following the detailed steps in this article: How to enter and pay bills. 

 

For future reference, you can always visit this article to learn more about managing bank feeds in QBO: Download, match, and categorise your bank transactions in QuickBooks Online. 

 

That should do it! Please know that I'm just a post away if you have additional questions about account payable (A/P) cycle in QBO. I'd be happy to answer them for you. 

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