a customer who paid their invoice was recorded in the wrong business entity so I had to transfer the money to the correct business and don't know how to record it

Hi Lucy,

I'm here to help you record the invoice payment to the correct business entity.

Although these transactions seem like a transfer, we'll have to record them as an expense from one company, and deposited by the other one. 

Just a heads up, if you want to record the transaction the other way or if you're unsure of the accounts to use, I recommend reaching out to your accountant so they can guide you accordingly. To record the transfer, you can follow the steps below.

To start with, let's transfer funds to the other business entity:

1. From the + New tab, select either Check or Expense.
2. Select the bank account the funds are coming from.
3. Enter the Payee, Payment Date, and the Payment Method.
4. Go to the  Category details section.
5. Select an Asset or Equity account to record the money out.
6. Enter an Amount.
7. Click Save and close.

From there, we'll have to receive the funds from the other company by creating a deposit. Here's how:

1. Select Bank Deposit from the + New tab.
2. Choose the bank account the funds are going to.
3. Enter the Date.
4. Go to the Add funds to this deposit section.
5. Select an Equity or Liability account.
6. Enter an Amount.
7. Click Save and close.

Moreover, I've added this article on how to avoid mixing business and personal expenses: Mixing business and personal funds in QuickBooks Online.

I'm always around whenever you have concerns about recording transactions.

@LUCY76 

Create a bank account in QB called 'Clearing Account'.  Assign that account to the deposit received in error in Co. A.  Then, assign that same Clearing Account to the payment made to Co. B.  Then, receive the payment in Co. B as you would had it come directly from the vendor.