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JohnP53
September 22, 2023
Question

Bill payments

  • September 22, 2023
  • 2 replies
  • 0 views

I need some help. I have recently taken over the accounting at a company. The person that is doing payroll now is kind of new to all of this. This company is 1099 only, there are no W2 employees. Here is how she pays contractors. She will go into the payroll interface on QB online and click pay contractors. Then she will find the contractor to pay and enter an expenses account and then an amount. From there she sends a direct deposit and the contractor is paid. Here is the issue, when she selects the expenses account, she is selecting the same expenses account that was already entered on a bill. This duplicates the expense and on top of that it is creating a bill payment. 

 

I need to know how to address these issues and get them cleaned up. If I go into the vendor after she has made payment and look at the transactions, there is a bill, bill payment and an expenses all entered for the same amount. If i try to void the expenses it tells me that it is used for a DD and I cannot void it. Also the expense and the bill are using the same category. 

 

I need to change the expense account that she is hitting to another one so that it does not duplicate the expenses. What account should I use?

 

 

2 replies

MariaSoledadG
MariaSoledadG
September 22, 2023

I'll share some information about duplicate transactions you see on your bank and guide you on how to fix this, John.

 

Normally, this happens when one enters payroll through the QuickBooks Online (QBO) account, at the same payroll was also entered outside your QBO account. 

 

You can cancel or void paper or direct deposit payments after they're submitted by deleting or voiding unprocessed direct deposits. I've outlined the detailed steps below to show you how: 

 

  1. Go to Expenses, then Vendors.
  2. Select your contractor.
  3. Look for the payment you want to delete or void, then select View/Edit.
  4. Select Delete or Void.
  5. Select Yes to confirm changes.

 

However, if these are already processed direct deposit payments, you're unable to void, cancel, or delete the transaction. Instead, create a Journal Entry so you can offset a contractor's direct deposit transaction. 

 

Once you void your contractors' direct deposit payment, the funds will be posted back to your bank account, and then resend the direct deposit payment or hand a paper check to the contractor. 

 

To know the difference between deleting or voiding payment, read this article for more information: Void Or Cancel Contractor Payments. 

 

Furthermore, learn how you can customize, run, and print payroll reports in QBO Payroll to take a closer look at your business and employees' information: Run Payroll Reports. 

 

Please get back to us if you have any other concerns with bill payments or duplicate transactions. Remember, the Community is always right here 24/7.

J
JohnP53Author
September 22, 2023

Thanks for the reply. I cannot void or delete the transaction that was entered as an expense as it tells me that it is used for direct deposit. I don't want the funds to go back into my account. I just need to delete or void the extra transaction that is being made which is a bill payment. 

 

But the issue that I am facing is that the expense category is being used 2 times, so this expense category is being charged with the same amount twice. Once when the expenses is entered to pay the contractor and once when the bill is being entered. I need to figure out how to stop this from happening. Also I am not sure how to fix the ones that have been done that way already. 

 

If i go into my chart of accounts and pull up this expense category, I can find where it was recorded 2 times. The bill that is entered is already putting this expense in the category, then when contractors are paid she is creating an expenses to pay from. This is in-turn putting the expense again into the same category. This category is not reflecting the correct number as most things are doubled.

Rainflurry
Rainflurry
September 22, 2023

@JohnP53 

 

If there was a bill entered and a bill payment issued, then the bank account (or whatever payment account was selected when the payment was issued) should be understated by the same amount as the duplicate expense is overstated.  You can reverse the bills and bill payments with a journal entry - debit the payment account that was used on the bill payments and credit the expense account that was entered on the bills.  That will increase the balance in the payment account and decrease the duplicate expenses.    

Q
QueenC
September 22, 2023

I understand that things can be confusing sometimes, @JohnP53. Navigating through complex tasks can be overwhelming at times. Allow me to assist you further by connecting you with the best support available. They will be able to provide you with more detailed and secure assistance to resolve the issue you're facing.

 

But before that, you can follow the recommended steps by Rainflurry which is to reverse the bills and bill payments with a journal Entry. This will help rectify the situation by increasing the balance in the payment account and decreasing the duplicate expenses. This will help ensure that your financial records reflect the correct information.

 

However, if issue persist, I'd suggest getting in touch with our Technical Support Team so they'll be able to isolate this using their tools to look at this based on your perspective and figure out what's causing the duplicate. Through this, you can now get back to working without any issue on your expense category in QuickBooks Online. 

 

  1. Go to the Help icon and select Contact us in the Search tab.
  2. From the What can we help you with field, enter your question.
  3. Click on Continue.
  4. Choose either Appointment, Callback, or Chat.

 

Additionally, recording a refund or credit from a vendor in QuickBooks Online is an important task to ensure accurate financial records. It allows you to properly account for any money returned or credited to your business by a vendor. Should you need to record one, feel free to check out this article I got for you: Enter vendor credits and refunds in QuickBooks Online. 

 

Please feel free to post a response in case you need further assistance in managing your bills and keeping your accounts accurate in QuickBooks Online. We'll be here to lend a helping hand a ensure a smooth process for any of your QuickBooks activities. Take care. 

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