Select an account?

When initiating your first Core Payroll run, you'll be prompted to "Select an Account." This step requires you to choose the specific account where the payroll amounts will be recorded in your financial records. This could be either the credit or the debit side of the pay journal, depending on your specific accounting setup. I'm here to explain further to ensure the accuracy of your initial payroll setup, Richard.

When you choose a credit account, this is the bank account from which the payroll will be disbursed. This account should be credited because you are reducing its balance by paying out to employees.

For the debit side, you can select the expense accounts related to salaries, wages, taxes, and benefits. This increases the expense for the company showing that you owe this amount to your employees.

You'll only have to double-check that all accounts are correctly set up and linked, ensuring both the debit (expenses) and credit (bank account for disbursement) sides are accurate.

If unsure about account selection, consulting an accountant can ensure your setup aligns with standard accounting practices. You might want to review your setup, here's a handy article that will guide you through the process: Get Started With QuickBooks Online.

Additionally, here’s our handy guide to help navigate you through some of the key features of QuickBooks Online Core Payroll: Navigating QuickBooks Online Payroll Core.

Feel free to let me know if you have any other questions about the pay run. I'm always right here to help you.

I am an accountant and I understand debits and credits! I just want to know what QuickBooks is asking me for in that drop down list.

Thanks for coming back to us, Richard. Let me share some details about the account you'll have to select.

When running payroll in QuickBooks Online Payroll Core, encountering the "Please select an account" error indicates that the bank account intended for payroll processing is not connected or linked within QuickBooks. This issue can prevent users from selecting an account in the chart of accounts drop-down menu, which is necessary for recording payroll transactions.

To fix this, verify your bank account if it's connected to QuickBooks. You can check this by going to the Transactions menu. If your bank account is linked, return to the payroll section and select your bank account from the drop-down menu again.

Additionally, you can check this link to create and customise payroll reports tailored to your specific needs: How to create and customise your payroll reports.

Let me know if you have other questions about running payroll. I want to ensure everything is taken care of for you.

It's the bank account - thanks. It was already specified in Payroll Settings so I don't know why I needed to enter it again. Anyway, it all worked!

"When you choose a credit account, this is the bank account from which the payroll will be disbursed" - what if the payroll is not disbursed immediately and I want to show the credit somewhere else on Balance Sheet - can I  edit the payroll transaction journal (as you used to be able to )?

"When you choose a credit account, this is the bank account from which the payroll will be disbursed" - what if the payroll is not disbursed immediately and I want to show the credit somewhere else on Balance Sheet - can I  edit the payroll transaction journal (as you used to be able to )?

I don't think you can edit payroll payments any longer... another 'improvement' I daresay!

You can delete the payroll run and re-run it. When you re-run it, select the appropriate balance sheet account rather than a bank account on the 'select account' screen.

Or you can separately journal the amount from the bank account to the appropriate balance sheet account to adjust the accounts.

Hi, Dave. We can delete and re run the payroll since we can't edit your transaction journal to show the credit to a different bank account. I'm here to guide you through the steps.

Previously, in QuickBooks Online Standard Payroll, you were able to edit  through the Journal report since each transaction type was recorded as a journal entry. Now, journal entries are treated as payroll payments, which requires a different method to edit the associated wage accounts. 

First, we'll have to delete the Payroll Run. After this, modify the payroll settings to update the associated wage expense accounts of the previous pay slips. Follow these steps:  

1. Log in to your QBO account.
2. Go to settings by clicking on the gear icon ⚙︎.
3. Under Your Company, select Payroll Settings.
4. Select Accounting by clicking the pencil icon.
5. Choose the appropriate category by clicking on the pencil icon ✎.
6. Ensure the correct checking account is selected for accurate reflection in your financial records.
7. Once everything is fine, click Save. 

After this, we can finally go back to the Payroll menu and re-run the payroll with the updated settings.

Lastly, for future reference, if you encounter any payroll error codes, feel free to visit this helpful article: Fix payroll error codes in QuickBooks Online.

Please don't hesitate to come back to this thread if you have more queries about payroll payments. We're always available around the clock to provide you with assistance. Take care.