Bill payments

I'll share some information about duplicate transactions you see on your bank and guide you on how to fix this, John.

Normally, this happens when one enters payroll through the QuickBooks Online (QBO) account, at the same payroll was also entered outside your QBO account. 

You can cancel or void paper or direct deposit payments after they're submitted by deleting or voiding unprocessed direct deposits. I've outlined the detailed steps below to show you how: 

1. Go to Expenses, then Vendors.
   
2. Select your contractor.
3. Look for the payment you want to delete or void, then select View/Edit.
4. Select Delete or Void.
5. Select Yes to confirm changes.

However, if these are already processed direct deposit payments, you're unable to void, cancel, or delete the transaction. Instead, create a Journal Entry so you can offset a contractor's direct deposit transaction. 

Once you void your contractors' direct deposit payment, the funds will be posted back to your bank account, and then resend the direct deposit payment or hand a paper check to the contractor. 

To know the difference between deleting or voiding payment, read this article for more information: Void Or Cancel Contractor Payments. 

Furthermore, learn how you can customize, run, and print payroll reports in QBO Payroll to take a closer look at your business and employees' information: Run Payroll Reports. 

Please get back to us if you have any other concerns with bill payments or duplicate transactions. Remember, the Community is always right here 24/7.

Thanks for the reply. I cannot void or delete the transaction that was entered as an expense as it tells me that it is used for direct deposit. I don't want the funds to go back into my account. I just need to delete or void the extra transaction that is being made which is a bill payment. 

But the issue that I am facing is that the expense category is being used 2 times, so this expense category is being charged with the same amount twice. Once when the expenses is entered to pay the contractor and once when the bill is being entered. I need to figure out how to stop this from happening. Also I am not sure how to fix the ones that have been done that way already. 

If i go into my chart of accounts and pull up this expense category, I can find where it was recorded 2 times. The bill that is entered is already putting this expense in the category, then when contractors are paid she is creating an expenses to pay from. This is in-turn putting the expense again into the same category. This category is not reflecting the correct number as most things are doubled.

@JohnP53 

If there was a bill entered and a bill payment issued, then the bank account (or whatever payment account was selected when the payment was issued) should be understated by the same amount as the duplicate expense is overstated.  You can reverse the bills and bill payments with a journal entry - debit the payment account that was used on the bill payments and credit the expense account that was entered on the bills.  That will increase the balance in the payment account and decrease the duplicate expenses.    

I understand that things can be confusing sometimes, @JohnP53. Navigating through complex tasks can be overwhelming at times. Allow me to assist you further by connecting you with the best support available. They will be able to provide you with more detailed and secure assistance to resolve the issue you're facing.

But before that, you can follow the recommended steps by Rainflurry which is to reverse the bills and bill payments with a journal Entry. This will help rectify the situation by increasing the balance in the payment account and decreasing the duplicate expenses. This will help ensure that your financial records reflect the correct information.

However, if issue persist, I'd suggest getting in touch with our Technical Support Team so they'll be able to isolate this using their tools to look at this based on your perspective and figure out what's causing the duplicate. Through this, you can now get back to working without any issue on your expense category in QuickBooks Online. 

1. Go to the Help icon and select Contact us in the Search tab.
2. From the What can we help you with field, enter your question.
3. Click on Continue.
4. Choose either Appointment, Callback, or Chat.

Additionally, recording a refund or credit from a vendor in QuickBooks Online is an important task to ensure accurate financial records. It allows you to properly account for any money returned or credited to your business by a vendor. Should you need to record one, feel free to check out this article I got for you: Enter vendor credits and refunds in QuickBooks Online. 

Please feel free to post a response in case you need further assistance in managing your bills and keeping your accounts accurate in QuickBooks Online. We'll be here to lend a helping hand a ensure a smooth process for any of your QuickBooks activities. Take care. 

Thanks for the reply. I will try this and see if it fixes the issue. Also I talked to the person that is paying the contractors and she said that when she goes into the contractor to pay them, it is asking her for an account category and she is picking the same as the bill that was entered previously. She then enters the amount and the DD is sent. However she said that it is creating a bill payment as well. This should technically reflect on the main checking account as taken twice. So i would assume that the journal entry would fix this issue. But I don't want to have to do journal entries each time she pays a contractor. They are paid weekly. 

@JohnP53 

Are you sure you're seeing the expense recorded twice?  Run a P&L to be sure.  When you pay a contractor through the payroll module, QBO creates a bill and bill payment under their vendor/contractor profile but it is not duplicating the expense.      

When I look under the vendor profile, I see the bill that was entered, the bill payment and another transaction called expense. From what it looks like, there are two expenses entered and only one payment being made. However, when I try to void the expense type transaction it tells me that it cannot be voided due to it being the DD that was sent. When the person pays the contractor through the payroll module, she just clicks pay contractors and then just selects the account and inputs the amount. It puts this expense transaction on there as the payment. 

I ran a P&L and it appears in there as the bill and an expense. 

If i void the bill payment and then apply the expense to the bill to show it paid, what account would I use on the expense transaction. I think this would work as long as i change the account the expense transaction is using.

Guess i would replace the bill payment with the expense payment. But i dont know what account to use for the expense, as right now it is the same as the bill.

@JohnP53 

"Here is how she pays contractors. She will go into the payroll interface on QB online and click pay contractors. Then she will find the contractor to pay and enter an expenses account and then an amount."

Ok, so that is the issue as far as the double-entry is concerned.  You pay contractors either using an expense entry or through the payroll module, but not both. 

Are you sure the contractors were not paid twice???

In terms of how to clear this up, if there is both an expense and a bill/bill payment entry, then you must have two separate payment entries that correspond to them because you cannot enter an expense or pay a contractor through the payroll module without specifying what bank account (payroll module) or bank/credit card/other current asset account (expense) the payment is coming from. 

What is the payment account used for the expense entries?  What is the payment account used for the payroll entries?  Which account did the payment actually come out of?  

Once you determine the payment account that has been assigned but not affected, then we can reverse this with a journal entry - debit the payment account, credit the expense.      

The payment account used for the expense is the main checking. This is where the payment is coming out of. From what I have seen the contractor is not being paid twice, just once at the amount on the expense that she enters. I have attached the transaction that is in question. There should only be a bill and a bill payment. but when she does the expense, it records a bill payment as well.  I am trying to just have a bill and a bill payment and not have the contract labor exp account be hit twice.

The file I attached shows the 3 transactions. The bill is what I entered, the expenses is what she entered to pay them, then the bill payment is being added, i am guessing through payroll when it is done. the No. [removed] is a system generated one, the others are number we put in.

@JohnP53 

"There should only be a bill and a bill payment. but when she does the expense, it records a bill payment as well. I am trying to just have a bill and a bill payment and not have the contract labor exp account be hit twice."

I still need to know what payment account is being used on the Bill Payment.  If the Expense is coming from the main checking account, where is the Bill Payment coming from?  Whatever account that is, it is off by the same amount as the duplicate Contract Labor expense.  Until I know that, there's nothing more I can help you with.  Once we know what account that is, then we can reverse the duplicate expense and the payment account from the Bill Payment.  Then, going forward, you can enter the Contract Labor through payroll or as an Expense, but not both.      

The main checking is the account that both the expense and bill payment are coming from. I confirmed this today. Now that this is confirmed, I should be able to journal the duplicate expense and checking account. I need to decrease contract labor expense and increase the checking account. This is what I am thinking. 

One more question about paying these through payroll. Should she be paying these through the bill payment feature or the expense way? I am not sure why she did both as it duplicated the entries. Also, if the bill payment is used through payroll, is there a way to see details on the bills that you are paying? I think that is the issue here. She enters the payment as an expense and sends the direct deposit that way. I confirmed that the payment is only going to the contractor one time.

Some contractors that she is paying have many bills to pay at one time and she cannot see which bills she is paying. 

Which way to pay a contractor is better? Expense or Bill payment. I don't want to have to go through everyone that she pays and make journal entries each week.

Thanks for coming back. Let me help you with recording your vendor transactions in QuickBooks Online (QBO), JohnP53.

If you need to record the payment in real time, then we need to enter it as an expense. However, if you plan to pay for the expense in the future, we need to enter it as a bill. You can record bills one at a time, or record multiple bills for multiple vendors at once. You can check out this article for more details: Enter and manage bills and bill payments in QuickBooks Online.

On the other hand, we can pay the contractors through Direct Deposit to pay open bills as long as you have QuickBooks Payroll and Contractor Payments. This lets you send their money directly to their bank accounts so they don't have to cash a check. You can refer to this article for the steps and details: Pay a contractor with direct deposit.

To see details on the bills that you are paying, just follow the steps below: 

1. Go to Expenses, then Bills.
2. The Bills page contains the For review, Unpaid, and Paid tabs. Select one of the tabs to view bills in that status and see available Actions:
   • For review: This tab lists all of the bills pending your review, including bills sent by other QuickBooks users through the QuickBooks Business Network.
     • Review: Opens the details of the bill so you can verify accuracy, then Save it to move it to the Unpaid tab, or schedule payment.
     • Save: Adds the bill to your Unpaid tab. If the bill is for $0.00, then it’s added to the Paid tab instead.
   • Unpaid: This tab lists all of your unpaid bills and if they are due later, soon, or overdue.
     • Schedule payment: Use a QuickBooks connected bank or credit card to pay for the bill.
     • Mark as paid: Use for offline payments that are not directly scheduled through QuickBooks.
     • View/Edit: Make any needed changes to the bill, then select either Save, Save and schedule payment, or Mark as paid.
   • Paid: This tab lists all of your paid bills and any linked payments. Select any bill to view details

Moreover, we also have resources to help customers with vendor-related tasks like paying bills, processing supplier credits, and creating purchase orders, to name a few: A self-help guide. They are arranged according to topics, so you'll be able to find the article easily.

Keep in touch if you have other questions about managing your bills or any other QBO concerns. I'll ensure you're all set. Wishing you all the best in everything that you do.

@JohnP53 

I need to decrease contract labor expense and increase the checking account.

You can do that with a deposit (New > Bank deposit - assign Contract Labor to the deposit) or a journal entry (debit checking account, credit Contract Labor).

Should she be paying these through the bill payment feature or the expense way?

See @RCV 's reply.  Expenses are for items you want to pay immediately, bills post to A/P and, when paid, reduce A/P.  IMO, the best way to handle this is to enter a bill, then pay it.  

 Also, if the bill payment is used through payroll, is there a way to see details on the bills that you are paying? I think that is the issue here. She enters the payment as an expense and sends the direct deposit that way. I confirmed that the payment is only going to the contractor one time.

IMO, there is no reason to do this through payroll.  To see the details of a bill that was created from the payroll entry, pull up the vendor (contractors are listed as a vendor) profile, locate the bill created from the payroll entry and click on it.   

Some contractors that she is paying have many bills to pay at one time and she cannot see which bills she is paying.

???  If she is paying bills using New > Pay bills, how can she not see which bills she is paying?  When you go there, you will be shown all of the outstanding bills that need to be paid.  They can be filtered by Payee.

She is trying to pay bills through the payroll module. She will click payroll, contractors, then she scrolls down the list of contractors and clicks them. Then the choice of pay bills or pay as expense comes up. You cannot see the details of the bills in this section. It just gives the date and amount. 

Part of the problem is that she is not going to new pay bills, she is trying to do it through payroll. 

A little update on my issue. I am able to fix the issue with the bank account and the expense account with a journal entry. However I am showing in the vendor transactions that there is a bill payment and an expense entered still after the journal entry. Is there a way that I can delete or void the bill payment and use the expense transaction to pay the bill instead without using a journal entry each time? The expense transaction is the true DD that went to the vendor. The bill payment is simply marking the bill paid. 

Hi there, @JohnP53. Thanks for coming back here. We recognize you for fixing the issue of your bank and expense account by utilizing Journal Entry (JE). 

Straightaway, let me guide you on how to void or delete your bill payment. And how you can use expense transactions to mark it as paid.

First, let's differentiate the Void and Delete options in Bill payment. Voiding changes the transaction amount to zero but keeps the transaction's record in QuickBooks. Meanwhile, deleting removes the transactions entirely. It also causes the bill(s) paid to return to unpaid status. 

Here's how to Void or Delete Bill Payments:

1. In the left navigation, click Expenses. Then, choose Bills.
2. Below, select Paid. Look for the Bill payment you want to Void or Delete.
3. Click the transaction to route you in its Bill form. In the upper right corner, below the PAID PAYMENT STATUS, tap the blue note "1 payment mad (amount)."
   
4. We'll be routed to the Bill Payment form. Tap the More option below. Then, select either Void or Delete.
   
5. 1. A prompt message will show "This transaction is linked to others. Are you sure you want to void or delete it ?" pick Yes. Then, OK.

After that, we'll now use the Expense transactions to pay the Bill. You can follow the steps below:

1. Click the +New icon.
2. In the Vendor column, select Expense.
3. Choose the Payee that we voided or deleted the bill payment.
4. A Bill transaction will show on the right-side panel. Select the one we void or delete by clicking the Add option.
   
5. Review the transaction. Once done, click Save and close.

Additionally, we'll share these articles to help manage your bill transactions:

• Enter and manage bills and bill payments in QuickBooks Online.
• Show all items on the Bill Payment voucher in QuickBooks Online.
• Run report with vendor totals.

We're pleased to have you here, @JohnP53. If you have additional questions, never hesitate to reply to this post. Keep safe, and have a good one!

@JohnP53 

"Is there a way that I can delete or void the bill payment and use the expense transaction to pay the bill instead without using a journal entry each time?"

The journal entry should have been a one-time fix.  If you prefer, and all of these transactions are in 2023, you can delete the bills AND the bill payments.  An expense has the same effect as a bill/bill payment, it's just that bills can have a different date than the bill payment for accrual basis taxpayers. So, it doesn't make sense to apply a bill payment to an expense (and you can't do it in QB) because an expense is essentially a bill with the bill payment recorded at the same time.  Just record these contractor payments as expenses in the future, not through payroll, and you will be fine.  

You may already be doing this but make sure you're reconciling the main checking account each month.  That should have thrown a flag since there are bill payments recorded that never cleared the bank. 

Thanks for the help. I learned that she is going and paying bills using bill payment. She cannot send these bill payments as we don't have that service to send these using DD. She then takes the bills that she paid and totals them up and goes into payroll and pays the contractor that total as an expense and it goes to the vendor via DD. This ends up hitting the expense and bank account twice. I then have to go back and adjust this because the categories have been doubled for this transaction.  

She says that she uses bill pay to know what she is going to pay and produce a report of that to pay them off of. I am trying to figure out a way that is best to just show a bill and a payment(weather it is a bill payment or an expense). In my case it will be an expense each time. 

Can I delete the bill payment, then change the category on the expenses payment to AP. This should produce a credit that i can apply to the bills that were originally paid with bill payment. This should only hit the bank account and contract labor expense one time. 

Or maybe when the expense is entered for the payment, I can use a different category besides contract labor? This is what is making it double. 

I know EXACTLY what you are talking about because I am having the same EXACT issue. I am paying contractors through payroll. The issue is in order to properly track the invoice and the expense it is entered as you would any bill. Then it is paid through payroll which is a direct deposit. For payroll I do a journal entry. Then I click the bill and to mark as paid with the transaction id of the direct deposit. NOW when I run a report I see that the expense is double AND the payment is doubled HOWEVER you may not see it at first glance because the payment made through payroll is within the lump amount being withdrawn to cover all the contractor's invoices. The fix I have come up with is to do a separate entry crediting the expense and debiting cash. That's the only way I can see to fix it while maintaining accurate records. If you delete the invoice what happens if you want to track when it got paid? 

Yes, @Rose.Journal entries are used to make adjustments or reverse entries to correct overstated or understated balances and maintain accurate books.

Moreover, when you create a bill in QuickBooks, it automatically generates a default account. This account is debited to the expense account and credited to the Accounts Payable.

Additionally, when you make a payment for the bill, it is directly debited from the Accounts Payable and credited to the bank account that was used to pay the bill. 

Nonetheless, if you need to delete a paid invoice, it is advisable to consult with your accountant to determine the best course of action. They can guide how to handle the situation appropriately and ensure that your financial records remain accurate and compliant. Do you want one? Visit this page for your guide: Find a ProAdvisor

I'm still here to help you keep your books accurate. Let us know in the comment section if you need one. Keep safe.

@Rose_Marie I have been trying to figure out a good way to fix this issue. I did not want to have to do a journal each time payroll is ran for the contractors. The person that does payroll does it the same way you are doing it. I tried this last night and it seem to work. I delete the bill payment as it is not the real direct deposit that went out, the expense entry is. This will cause the bill to be marked not paid. Then I take the expense entry and change the category to Accounts payable. This produces a credit that can be used to mark the bill paid. I click the bill I want to pay and then apply the credit I just made to it and it shows paid. This does produce a $0 bill payment after the credit is used. The history is also there as to when and how it was paid so it can be tracked. This appears to eliminate the double entries. I am only hitting the expense account one time through the bill and the bank account one time through the expense direct deposit. Also, I wanted to see the entries on the vendor's profile. I just wanted to have a paper trail on the bills and adjustments that were made. Journal entries work too to keep the balances of the accounts clean and correct. 

PERFECT!! Thank you! This is the cleanest way so far!