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C
Chris97277
August 28, 2025
Question

QB automatically creating incorrect JE when entering vendor invoices

  • August 28, 2025
  • 1 reply
  • 11 views

Hi all,

I am having a huge headache of an issue in which whenever I create a vendor invoice (does not matter which vendor since it does it for all vendor invoices I enter) QB will automatically create an incorrect JE. Instead of crediting A/P how it should be doing it is instead crediting employee reimbursements for some reason and I am then having to go back and create journal entries to properly record ALL vendor invoices in A/P. Not sure why it is doing this. Any ideas? 

1 reply

Z
ZackE_Moderator
Moderator
August 28, 2025

Thanks for reaching out to the Community, Chris97277.

 

When a vendor bill is created in QuickBooks, a journal entry is automatically generated to record your transaction. The bill increases your Accounts Payable since it's a liability, and adds a corresponding increase to an expense or asset account.

 

The bill represents a liability. This is money your company owes to the vendor and is recorded as a credit to Accounts Payable. At the same time, an expense or asset account is increased by your bill's amount, reflecting goods or services you received.

 

You can learn more about entering bills by reviewing our Enter bills article.

 

I'll be here to help if there's any additional questions. Have a great Thursday!

C
Chris97277Author
August 28, 2025

Hi Zack,

I appreciate your response, but that does not help. I understand A/P should be credited, but that is not what QB is doing. Whenever I enter in a vendor invoice, QB is creating a JE to credit employee reimbursements. It is not crediting A/P and I am not sure why it is doing that. I need help trying to figure out why QB is not properly crediting the A/P account.

D
Dandie_AQuickBooks Team
QuickBooks Team
August 28, 2025

Hello there, Chris. Let me provide you with more information on what is happening with the posting of your vendor invoice/bills.

 

When entering vendor invoices in QuickBooks Online (QBO), the default posting account for vendor transactions should be Accounts Payable (A/P). If the Employee Reimbursements account is being credited instead, it’s possible the A/P account was renamed to Employee Reimbursements, which can create confusion in how bills are recorded. You can verify this by checking the Audit Log for recent changes to your Chart of Accounts.

 

 

If this is the case, you can change the name of the Employee Reimbursements account back to Accounts Payable.

 

Here's how:

 

  1. Go to the chart of accounts and locate the Employee Reimbursement account.
  2. Click the dropdown arrow next to View Register and select Edit.
  3. Change the Account name to Accounts payable.
  4. Once you've made this change, click Save.

 

If this is not what you are experiencing, I would appreciate it if you could send a screenshot of the Employee Reimbursement account set up from your chart of accounts. This would help me isolate your concern and provide a better solution.

 

For the created Journal Entries, you can delete those to avoid duplication.

 

If you need further questions or help, feel free to comment below.

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