I've been creating a bill for the contractors I will need to pay. When I pay the with DD, it creates an expense to offset their balance to zero and marks the bill as paid. However, when I'm going through my banking transactions, if I try to match the transaction to the bill, it offsets the vendor balance. Should I not be matching the transaction since the bill is being marked as paid?
Thanks for posting your question here. I'd be glad to provide info with matching the transaction if the bill is marked as paid.
Before going into detail, I'd like to ask if you're creating a vendor direct deposit? Also, I'd reach out to your accountant to ensure that your books are accurate.
If so, when creating a contractors' direct deposit payment, you'll need to write a check on the contractor you would like to pay and select the Pay by Direct deposit option. In this case, you can double-check your transactions and delete the bill.
Although, if you wish to recreate the transactions, you may follow the steps below:
Choose Workers in the left-hand menu and then select Contractors.
Click on the write a check drop-down on the contractor you would like to pay. Then, pick Pay by Direct deposit.
Enter payment amounts and go to a Category for that payment.
Select a Corresponding account in QuickBooks.
The total amount will display next to Pay, then Pay.
A confirmation message will appear, press Yes, let's proceed to confirm payment.
The contractor payment details will show, then Close.
In some cases they are being paid by direct deposit, in others they get paper checks. The balance wasn't off until after the expense was matched to the bill after the fact. If the bill is being marked as paid when it is being paid with direct deposit, should the transaction not be matched but just added in that case?
After creating a direct deposit for the vendor and marking it as paid, you should match the Direct Deposit to the expense that was created. However, if the bill is paid through a check, then you can match it to the bill.