Transaction help

You can create a journal entry, then apply it to the open bills or vendor invoices to mark them as paid, Cat.

First, create an equity account that will represent the other company. Next, create a journal entry affecting the equity account and accounts payable. You can reach out to your accountant to identify the debit and credit in your journal entry.

Once all the steps provided above are completed, the final step is to apply the journal entry to the bill. This ensures the bill is marked as paid, accurately reflects the transaction in your accounts, and maintains proper reconciliation within your financial records. 

Here’s how:

1. In the navigation above go to Vendors then Pay Bills.

2. Check the bill, then click Set Credits.

3. Select the journal entry that you created.

4. Click Done. Then, Click Pay Selected Bills.

I'm also adding this article to learn how to use the Intercompany Transactions feature to issue a bill or check between separate companies: Create transactions between different company files. Please note that this option is only available on QBDT Enterprise 2023-2024 Accountant, Diamond, and Platinum.

It seems like your question got cut off. Please feel free to repost it here in the same thread so I can assist you further.

If you have further questions, don't hesitate to reply down below.

BonJulius_G thank you so much for the help, I was able to follow the steps and get those transactions cleared. What is the best way to handle the transaction for company that paid the transaction?

Thanks for following up with the Community, Cat66. I'm happy to hear BonJulius_G was able to help with getting your transactions cleared up.

As for your other company, when a customer pays for an open invoice, you'll need to enter the payment in QuickBooks. Recording invoices is part of the Accounts Receivable workflow.

Here's how to enter a payment from a customer:
 

1. From your QuickBooks Home page, or the Customers menu, click Receive Payment.
2. Use the Received From drop-down list and choose a customer's name.
3. Enter an Amount received.
4. Confirm your payment date is correct, then pick a Payment method.
5. Choose an invoice or multiple invoices you'd like to pay.
6. Enter any other necessary information. To add a discount or credit, hit Discounts and Credits.
7. Select Save & Close.

By default, payments are deposited to an account named Undeposited Funds. If you process invoice payments through QuickBooks Payments, QuickBooks takes care of everything for you. You don't need to combine payments or move them to an account.

You can learn more about this process by reviewing our Undeposited Funds article.

I've also included a detailed resource about the Accounts Receivable workflow which may come in handy moving forward: Get started with customer transaction workflows

If there's any additional questions, I'm just a post away. Have a wonderful Friday!

Thank you for your response ZackE but this wasn't a customer pay situation. We have 2 separate companies with 2 separate QB accounts and company A paid an invoice that company B should have paid. BonJulius_G helped me clear the transaction on Company B's account but I'm not sure the best way to get the transaction entered and cleared on company A's side since it wasn't supposed to go there.

Hello Cat66, 

Thanks for chiming back in on the thread and clarifying. I highly recommend connecting with your Accountant to verify the process. However, you could create a journey entry in Company A, as my colleague shared the steps for those above, debit the original expense account that was incorrectly paid, and then credit a liability account.

If you dont have an accountant, no worries —we offer ProAdvisor services so you can connect with an expert in your area. Some even offer a free consultation. 

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