Supplier closed down before I could make payment.

You can create a Journal Entry (JE) transaction and link it in the open bill through the Pay bills function, Andre. I'll share further details about it.

To begin, create a clearing account where the balances will go. This account is used to move money from one account to another account when you cannot move the money directly. Here's how:

1. Go to Transactions and select Chart of accounts.
2. Click the New button in the upper right corner.
3. In the Account Name field, enter Clearing Account, Barter Account or Wash Account.
4. Choose Bank in the Account type dropdown.
5. Fill in the necessary details and click Save.

Then, create a JE to transfer the amount from the Accounts Payable (A/P) to the clearing account. Here's how:

1. Go to +New and select Journal entry.
2. Input the A/P and clearing account.
3. Debit the amount from A/P and credit the amount to the clearing account.
4. Click Save and close.

To mark the open bill as paid, let's now create a Pay bill transaction. Here's how:

1. Go to +New and select Pay bills.
2. Tick the box of the supplier.
3. Click Save and close.

It's best to consult an accountant for this process for assistance.

Additionally, you can run supplier report to get a comprehensive overview of your business finances.

Let us know if you have other concerns with recording your supplier payments in QBO. We're here to help you in any way we can.