Bill payment (Cheque)

When you pay a bill from a bank account, QBO always labels it Bill Payment (Cheque), whereas paying from a credit card is labeled Bill Payment (Credit Card). This is the standard system label that indicates the funding source, even if a physical cheque was not used. While this transaction label cannot be changed, it will not impact your accounting or reconciliations.

If you want to track the actual payment method used, a great workaround is to enter a reference note such as "DD-12345678" in the Ref no. field of the transaction for tracking purposes.

For the reconciled bank charge, the solution depends on how it was originally entered. When you open the bank charge, does it say Cheque or Expense at the top left?

If it says Expense, you can easily change the payment method from the dropdown menu. As long as the amount and bank account remain exactly the same, saving this change will not disrupt your reconciliation.

If it displays Cheque at the top left, it is a cheque transaction type. The only way to change it is to delete it and recreate it (or recategorize it if it was categorized from bank feeds) as an expense. Deleting a reconciled transaction will un-reconcile it, but you can quickly fix this without redoing the entire month.

Refer to a section of this article for the detailed steps: Fix deleted reconciled transactions. I'd also recommend collaborating with your accountant if this is the case to ensure accuracy.

Feel free to leave a comment below if you have any additional questions.