I think it is a better option to raise journal entries for the transaction. The bank entry would match out the refund 

However, the workaround solution would be to raise journal entries against the expense and bank accounts for the refund. The bank entry should match the refund value. 

I hope this helps

what a bunch of BS - all this time and the same canned answers making our problem instead of QB's.

I've not had this problem in 2 years, and now staff can't account in the same way it had for all that time. The category is not a liability account - likely QB has a query error in it's typically poor database mapping. 

Time for a change.

Logged in yesterday and it's happening again. Won't let me categorize credit card expenditures. I get this message again..... "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."

Please fix

Thanks

I recognize that managing your bank or credit card transactions on time is crucial, @BLACK River Dave. I'm here to provide you with more information on this matter.

We have received similar feedback from other users, and we appreciate your input. Although we don't have a specific timeline for when the issue will be resolved, our Product Developers are working hard to improve our products and services.

I suggest that you get in touch with our QuickBooks Online (QBO) Support Team to add your account information to the list of affected users. This way, you'll receive updates on the investigation's status.

To reach our support team, follow these steps:

1. Go to Help.
2. Select Search.
3. Click the Contact Us button and enter your concern.
4. Press Continue.

In the meantime, you can manually enter the transactions into your company to maintain a comprehensive record. Also, you can reconcile your account to ensure the entries in QBO match your actual transactions.

We appreciate your patience and understanding as we work towards resolving this matter. Please let me know if you need further assistance with managing bank transactions in your file. I'm always available to help.

I will not manually add anything, I don't have the time or expertise. That's why I pay QBO to do that for me.

This should be an easy fix since this happened to my account recently and was corrected already.

Spoke with "Pedro" today. He wanted to take control of my screen, I told him to check my account notes from the previous issue to fix the problem. He insisted. Then he wants me to login to my banking information while he's controlling my screen. I told him no, why can't I update my banking information thru the "update" icon. He said OK. Very strange

I don't have time to contribute to QBO people learning about QBO on my dime. I don't have hours to spare so I wanted to escalate to the next level and got put on hold for longer than I cared to wait.

No email has been sent with a case number, nothing.

I need help! Is anyone monitoring this thread?

Thanks for getting back on this thread, Black River Dave. 

Yes, we are the group of individuals called Community who will respond to the thread related to your query on QuickBooks. We are aware of the significance of your concern, and it is our top priority to ensure that we provide you with an appropriate solution.

I recommend reaching out to our QuickBooks Online Support team to resolve your query. This team is equipped to handle such inquiries, as they possess the ability to request account information, access your company's financial details, and provide you with sensitive information. They will be able to offer further assistance in addressing the error that is preventing you from categorizing your credit card expenditures.

Additionally, here's an article you can read to learn more about matching your downloaded transactions: Assign, Categorize, Edit, and Add your Downloaded Banking Transactions.

Do not hesitate to share any further questions you may have here in the QuickBooks Community. I am confident in my ability to provide you with the best possible assistance. Have a great day!

Good Morning,

This error should be easily corrected based on the same issue that was resolved back in March '24. Why am I getting a pop up wanting me to let QBO "auto" categorize my expenditures, could this be related?

I just want to be able to use QBO as originally intended, I'll do my own categorization. Please fix my QBO!

I can see the importance of doing your categorization of transactions in QuickBooks Online (QBO). No worries. I'm here to help you achieve your goal in QBO. 

After connecting your bank and credit card accounts, QuickBooks automatically downloads the latest transactions and attempts to match them with the entered transactions. However, you can also take charge of categorizing your transactions. To do this, disable the Enable suggested categorization in QBO. I'll show you how: 

1. In QuickBooks, click Transactions from the left panel. 
2. Select Bank transactions. 
3. Go to the For Review tab and tap the gear icon from the right side. 
4. In Transaction details, you can uncheck the Enable suggested categorization. 

Furthermore, reconcile your accounts on QBO once you've categorized your entries.

Let me know if this guidance has helped you with categorizing your entries. You can count me in if you need additional help handling your business in QBO. I'm always ready to assist. Keep safe. 

In case you missed my above post ....

Hi, @BLACK River Dave. I appreciate you for giving us an update on the issue.

I acknowledge the error you encountered is an ongoing problem in categorizing Credit Card (CC) transactions in QuickBooks Online (QBO). I'm here to provide updates on this investigation case.

A new investigation has been opened as the issue persists. Although there's no specific time frame for the fix, I encourage contacting our Support Team to add you to the list of affected users and be notified once the issue is resolved. They can also provide live assistance and guide you on the best steps to take for now. Here's how you can reach out to them: 

1. In your QBO account, go to Help (?).

2. Select either of these tabs:

• Assistant tab and type Talk to a human.
• Search tab and click on Contact us to connect with a support expert.

3. Choose how you want to reach us (phone or chat).

Let me add this article in reconciling your accounts in QBO after the issue is resolved: Reconcile an account in QuickBooks Online. 

We'll be here in the Community if you have further concerns about the issue of categorizing CC transactions in QBO. We're committed to offering ongoing support.

Resolved.

Thank You senior engineers!

Good morning, @BLACK River Dave . 

I'm glad you were able to get this resolved.

If you have any other questions or concerns, don't hesitate to ask. Have a wonderful day!