Let me share some information to help you get rid of the error, @kbabg-hotmail-co.
When creating an expense transaction in QuickBooks, you'd want to make sure to select a bank account. The account where the payment is coming from is only intended for a bank account or a credit card account.
You'd want to view the account details of the Payment Account you've selected. Here's how:
- Go to the Accounting menu.
- Choose the Chart of Accounts tab.
- Locate the account you want to use in creating your transaction,
- From the Actions column, click the drop-down arrow.
- Select Edit.
Once you're able to update the account type of your payment account, you can try creating a transaction again. However, if you choose to use Other Asset accounts, you'll need to create a journal entry when entering the transactions. Here's how:
- Go to the Gear icon.
- Select on Journal Entry.
- Fill out the fields to create your journal entry.
- Click Save and close.
You can read through this article to learn more about managing your expenses in QuickBooks: Enter, edit, or delete expenses in QuickBooks Online.
Stay in touch with us here if you have other questions about recording your transactions in QuickBooks. I'm always here to help.