unable to add downloaded transaction

It's my priority to help you add downloaded transactions in QuickBooks, Jake.

In order to successfully add the refund transaction to your account, it's important to use the original expense account from the original bill as the category.

Apart from that, the error message suggests that you can either disconnect the account or modify its category type to either bank or credit card.

Moreover, I'll be sharing the following resources to help manage your bank transactions in QBO: 

• Manually upload transactions into QuickBooks Online
• Match and categorize.

Should you require additional support with adding downloaded transactions in QBO, please don't hesitate to get in touch. I'm here to help you.

I am attempting to use the original expense account from the original bill as the category. The category is an expense type. I don't want to change it to something else, because this is the correct type for this category

Hi there, @DD Bookkeeping.

Currently, we have an ongoing investigation into the reason behind the error message you're getting. Rest assured that our engineers are doing their best to fix it as soon as possible.

I recommend contacting our Customer Care Support team so you'll be added to the list of affected users. This way, you'll receive email updates on the investigation's status and be notified once it's been resolved. I've included the steps to contact support below. 

1. Click the (?) Help icon in the upper right-hand corner of the dashboard.
2. Select Talk to a Human.
3. Enter a short description of your concern and press Enter.
4. Click I still need a human.
5. Select Contact Us to connect with our live support.
6. Choose Get a Callback.
   

In the meantime, you can exclude the transaction and enter the refund manually.

I appreciate your patience as we work through this. If you have any other concerns, please don't hesitate to drop a comment below. Take care!

Hello jakewho,

I have reviewed the solution you’ve shared and it's correct and accurate. Thank you for sharing your inputs to help address the issue.

We love to see members supporting one another! Have a great day. 

I also have this problem.  Obviously, having to manually enter multiple transactions and then match them is a nightmare.  I went in and changed the category to "Other Business Expense" in an effort to help fix this.  Can QB prioritize this.  Credit card refunds or credits from vendors is a fact of everyday life. 

I am receiving this same error message when trying to categorize a deposit into a checking account. I am choosing an equity account, because the owners are depositing cash into the business. Why am I getting an error saying, "This account is set up as a liability account"?  Neither the bank account the money is deposited into, nor the equity account I am coding it to, are "liability" accounts. This doesn't make any sense.

Instead of a work-around, let's get it fixed. Every time I am told to do a work-around in QBO, I would like a credit on my monthly subscription. Why does the price for QBO keep going up when there are so many issues going on for years which can't seem to be fixed or never rise to a level of importance for Intuit to prioritize a fix. 

Any update on this investigation? because the message still on...

Let's work this out so you can manage transactions seamlessly, @Herika.

Please know that the investigation mentioned in this thread has been closed. In the meantime, you may consider disconnecting the account or changing the category to bank or credit card. I'll show you how:

1. Go to Bookkeeping, choose Transactions, then Bank Transactions.
2. Select the tile for the bank account, then the pencil ✎ icon, and click Edit account info.
3. Tick Disconnect this account on save checkbox. This option won't be available if QuickBooks is downloading new transactions.
4. Tap Save and Close.

To change the Account Type, here's how: 

1. Go to Bookkeeping, choose Transactions, then Bank transactions.
2. Select the tile for the bank account.
3. Select the pencil ✎ icon, then select Edit account info.
4. Click the drop-down under Account Type and choose Bank or Credit Card.  
5. Tick Save and Close.

Moreover, the error message you receive usually happens if there is a network issue, causing our server to drop your connection. It will self-resolve within a few minutes. 

However, we can access your QuickBooks account via incognito or private window to see if you're able to add transactions there. If it works, clear the default browser's cache, excluding the cookies as they store helpful connection information. You can also use other supported browsers to isolate this issue.

Once everything is settled, check out these articles for guidance:

• Categorize and match online bank transactions in QuickBooks Online
• Reconcile an account in QuickBooks Online

Don't hesitate to reach out again for more banking concerns. I'm more than happy to lend a helping hand. Take care.

I tried all of these suggestions. I am still seeing the error

Same here, QB says to change the account to a credit card... too bad it already is set to a credit card.

I appreciate you for joining this thread and posting your concern, @grip6 and brandon211999.

I'm here to provide some workaround and route you to the right support to get around this issue with your transactions.

Since the mentioned investigation above is closed, you'll want to try the alternative steps below to fix the error you've encountered. I'd be glad to show you how:

1. Click +New. 
2. Create a Credit Card Credit (Transactions receiving this message are associated with Refunds).
3. Save the credit card credit with the vendor showing up in the bank feed
4. Go to Bank Feed Transaction and then Match the transaction.

If you're still seeing the same error, I recommend getting in touch with the QuickBooks Online Support Team to have them investigate this matter and give you a possible resolution.

In addition, these helpful references may come in handy in organizing your transactions seamlessly:

• Categorize and match online bank transactions in QuickBooks Online
• Reconcile an account in QuickBooks Online

If you have any other questions about your bank transactions or any other QBO-related tasks, please feel free to leave a comment below. I'll get back here as soon as possible to help you again.

I am so annoyed at this issue. Can't believe it has obviously been an issue for at least 12 months and QBO has not fixed it. My time is valuable and you are driving me crazy.

Hi there.

I understand how difficult it is to unable to add transactions in your account. This surely affect your working progress.

To further guide you resolve it, could you tell me additional details about your concern? Any information you can add such as your bank's name or any error message you encountered is a great help so I can provide an accurate and timely solution.

I'm just around the corner to help. Please don't hesitate to leave a reply below. Have a good one. 

Can't add expenses paid with CC. Below message pops up....

"This account is set up as a liability account. To accept this transaction, either disconnect the account or change its category type to bank or credit card."

What "hidden" update did this to the program? Please reverse this ASAP. Spent over an hour on the phone with customer service to no avail. Stop trying to sell insurance and make me a loan and get back to providing accounting software for my business. Never had these problems with Desktop Pro  sigh

I understand how important to be able to add expense transactions in QuickBooks Online (QBO), Black River.

Currently, we have an ongoing investigation about the error message "This account is set up as a liability account. To accept this transaction, either disconnect the account or change its category type to bank or credit card". Rest assured that our engineers are doing their best to fix it.

I recommend contacting our Customer Care Support team so you'll be added to the list of affected users. This way, you'll receive email updates on the investigation's status and be notified once it's been resolved. 

Here's how to reach them: 

1. Click the Help menu in the upper-right-hand corner.
2. Type in "Talk to a human", then press Enter.
3. Select Contact Support Team.
4. Type again Talk to a human and click Contact Support Team.
5. Choose a way to connect with us.

I've added these handy resources can help you organize your transactions in the future:

• Categorize and match online bank transactions in QuickBooks Online
• Reconcile an account in QuickBooks Online

I appreciate your patience as we work through this. I’m always ready to assist you if you have more questions or concerns about managing your bank transactions. Take care always. 

Kudos to QBO team for fixing this issue in a timely manner. I appreciate it immensely.

Thank You!

This is error is still happening right now. the investigation mentioned was being done 2023, it's already 2024 and is not yet resolved?

I know how this affect your working. I'm here to provide more information about it, @MRoyo.

The investigation for the error "This account is set up as a liability account. To accept this transaction, either disconnect the account or change its category type to bank or credit card" is already closed and resolved. Since you're still experiencing the same issue, I recommend contacting our phone support to further determine the cause of the problem. Here's how:

1. Select the Help menu and click the Search tab.
2. Next, click the Contact Us button.
3. Then, choose the topic of your concern or the Ask about something else option.
4. If you choose the latter, enter a brief description of your concern in the box dedicated to it and click Continue.
5. From there, choose either Start a chat or Get a callback.

It's also recommended to ensure you perform the reconciliation process to make sure that your QuickBooks balance matches your real-life bank statement. 

If you have other concerns managing your bank transactions, please don't hesitate to leave a reply below. Have a good one and stay safe. 

I am having the same issue, and the answers here are concerning - this clearly has been an issue for over a year, and it's not unreasonable for us to be able to quickly verify refunds to a credit card.  I don't understand why this needs a workaround or disconnecting an entire account?

Same - my first time seeing this error on 4/30/24.  How can this possibly STILL be an issue??

Hello there, Swell Care. I've got some key steps to add a refund transaction to your QuickBooks account successfully.

Use the original expense account category from the initial bill/charge when categorizing the refund transaction. This will ensure the refund is properly matched to the original expense.

Also, disconnecting and reconnecting the bank/credit card account in QuickBooks can resolve the issue. If you choose to disconnect a bank or credit card account from online banking in QuickBooks, it will not affect your existing accounting data or transaction history. The disconnection is a temporary measure, and you can reconnect the account at any time to resume downloading transactions automatically.

However, if you continue facing issues adding the refund, we recommend calling your QuickBooks Online representative to have this investigated further. 

Following these steps provides the best chance of successfully adding refund transactions until Intuit resolves this long-standing issue with its software. Ensuring proper account setup and categorization is crucial for accurate bookkeeping.

I'm adding that this just popped up as an error for me too after having this account connected for several years. Account has been set up as a credit card ever since.  Disconnected it and reconnected it and didn't fix the problem. 

This error still exists. I have many transactions pending for this reason. QBO needs to do much more. How can an issue of this nature lingers for this long.