How do I enter a payment for a bill from a vendor that actually came from a title company? Vendor bill is on our books, but part of the payment was paid through a construction draw submitted by us to the title company so the vendor's bill was paid by the title company. I don't know how to reduce the balance we owe to them by the amount paid by the title company.
You can enter a journal entry to reduce the balance you owe. However, the assistance of an accountant is a must to help and guide on which account to debit and credit. Also, this is to ensure your books is 100% accurate.
Here's how to enter a journal entry:
Click + New in the left panel.
Choose Journal entry.
Fill out the fields to create your journal entry.
Hit Save and close.
Here's a quick guide on how journal entries work in QuickBooks Online as well as on what are the rules you need to follow when entering them: