John, I can guide you on the best way to record the ACH credit and pay your client's bill. We'll have to create a reversing journal entry, unlink the bill payment, and then pay the bill to keep everything organized.
Before we start, I recommend reaching out to your accountant for guidance on which account to use for the debit and credit. When you have the information handy, follow these steps to enter the entry:
- In your company, go to the + New menu in the upper left and select Journal entry under the Other column.
- On the transaction screen, fill in the following fields with the correct information: Journal date, and Journal no.
- In the Account column, enter the category you wish to use. Input the amount in the right column based on whether you'll have to debit or credit the account.
- On the next line, select the other category you're moving money to or from and enter the same amount in the opposite column.
- Ensure you have the same amount in the Credit and the Debit column to balance the account.
- Click Save or Save and new.
Next, unlink the bill from the payment. Here's how:
- Go to the Expenses menu on the left panel and select Vendors.
- Look for the vendor you're working on and open the original bill payment.
- On the Bill Payment screen, tick the box for the journal entry and unmark the bill you originally paid.
After performing these steps, let's go ahead and pay the bill. You can go over this link to learn the various ways to record vendor payments: Learn the difference between bills, checks, and expenses in QuickBooks Online.
In the event that you wish to view all payments made to your vendors or need assistance with credit or refund processing, please follow each link below for detailed information:
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Drop a comment below if you have additional questions or concerns about managing your vendor's transactions and other accounting tasks. We're always available to help you out.
