recategorizing expense to liabilities

Hi,

Here is The California Board of Equalization Payable (other current liabilities) account information is shown in screenshot 2.

Thank you,

Hi there, panda0210.

Thank you for coming back to the QuickBooks Community and I appreciate you for providing detailed information about your concern. With this, I'll be sharing details on how accounts in QuickBooks Online works. Then, an alternative way on how to achieve your goal.

There's a chart of accounts in QuickBooks Online that is a list of all of your accounts in QuickBooks. When you create your company file, QuickBooks directly customizes your chart of accounts based on your industry. With this, the system will automatically create an account for your taxes and other payables. However, the one you're trying to change is currently not authorized in QuickBooks Online. That's the reason you're getting the error.

In the meantime, you can use and change other accounts or create a new account in QuickBooks Online. This way, you're able to utilize the created account to track your transactions.

Lastly, you may refer to this article to view different details on how to hide or delete an account in QuickBooks: Learn about the chart of accounts in QuickBooks.

Please let me know if you need clarification about this, or there's anything else I can do for you. I'll be standing by for your response. Have a good one.

You cannot change an expense to a liability.  In accounting terms, one is increased with a debit (expense) and the other is decreased with a debit (liability) so they conflict.  Did you pay sales tax and record it as an expense instead of a reduction of the CBoE payable account or something else?  If you can give me some more details, I can try and get you squared away.