How do I match a bank transaction against a liability account?

Hi @Phil_UK 

You will probably need to clear down the Liability Account by raising a Cheque in QBO - this forces the balance into the Bank Register & means it should be matched automatically.

Alternatively, enter the Payroll as a Cheque rather than a Journal followed by a Cheque ... https://quickbooks.intuit.com/learn-support/en-uk/other-questions/payroll-monthly-manual-journals/00...

Hope this helps.

Hello Phil_UK, Thanks for posting on the Community page, So they won't match up because the payroll journal didn't hit the bank, that’s why when you click on find match nothing shows up to match it against. You mentioned the payroll journal debits Salary to expenditure and credit it to Current Liabilities. You will have to manually post the expense to current liabilities instead.

Hi Paul,

I'm not sure how to raise it as a cheque rather than a journal, and I see no way to import a cheque. I have 60 staff with salaries charged to various combinations of class and location - in all, my salary journal is around 250 lines long - so I can't do it in 6 lines like your example in the other answer, and need to import this from a .csv file. About 245 lines relate to salary, NI and Pension for the employees, and the other five summarise the totals due to be paid to: staff (one lump that our payroll company set up a BACS transfer for), HMRC (for PAYE/NI), the Pension Company and other odd things like salary sacrifice schemes and AEOs, which are all set to a central class and location for later payment from the related liability accounts.

I also need it to show as a liability rather than an expense at the end of each month (and at y/e), as the HMRC and Pension payments don't get paid until the following month.

In Sage, I used to simply make a Bank Payment from the liability account, that would clear the liability (as a debit) and credit the bank account. How do I do this within QBO?

Many thanks.

Hello Phill_UK that would work as it should not duplicate it for you, as it should balance the liability account if the journal credits it as the payment from the bank feed would debit the account for you. 

Yes, that works fine - much clearer than having to set up non-existent cheque payments to match the liabilities.

Thanks.