Bill paid out of incorrect business bank account

Saphire605 · ‎February 18, 2020

I have a bill that was supposed to be paid out of Company A and instead it was paid out of Company B (which has a separate QB file). I am trying to figure out how to account for this.

ShiellaGraceA · ‎February 18, 2020

Hello @Saphire605,

You can create a clearing account in your company A and use that account to pay the bill. This will zero out the account in your company A. However, I'd still recommend consulting with your accountant to correctly record this.

Here's how to create a clearing account:

In your QuickBooks, press CTRL+A.
Right click anywhere in the Chart of Accounts, then New and choose Bank.
Hit Continue and enter "Clearing Account, Barter Account, or Wash Account" in the Account Name field.
Leave the Enter Opening Balance empty. Then, click Save & Close.

Once done, create a journal entry and use the clearing account. Here's how.

Go to Company, then Make General Journal Entries.
Enter the A/P from which you're moving the account. Then, the Clearing account.
Hit Save & New. Then, create a second journal entry and add the Clearing account and A/P account in paying your bills.
Link the two journal entries together.
Click Save & Close.

You can read more about the clearing account in this article. You can also visit our page for more helpful related articles. Feel free to check this link: Banking and bank feeds.

Thanks for coming in to Community. Please know that you're always welcome to drop-by anytime soon. Have a great day.

View solution in original post

MaryAnn_E · ‎February 18, 2020

Hi @Saphire605,

Let’s create a bank account for Company B in your Chart of Accounts, then pay the bill using it. I'll show you how.

Go to Lists menu, select Chart of Accounts.
Under Account, select New.
Choose a category of your account.
Enter Company B in the Account name.
Click Save & Close.

Here's how to pay bills using the created bank account:

Go to the Vendors menu.
Select Pay Bills.
In the Pay Bills window, select a specific vendor from the drop-down menu in the Filter By field. Make sure to select Vendor in the Sort By field.
In the Account drop-down arrow, select the created bank account for Company B.
Select the invoices from that vendor and click Pay Selected Bills.

Next, if company B pays back to company A, you need to create a bank transfer.

Also, here's an article you can read to learn more about how you can create an account: Create, Edit, or Delete Account in QuickBooks.

In case you need some related articles in managing your account, you can visit our Reports and Accounting articles for reference.

You can always click the Reply button and leave a comment below if you have any other concerns.

Saphire605 · ‎February 18, 2020

Would it be easier if we used an intercompany account instead?

ShiellaGraceA · ‎February 18, 2020

Hello @Saphire605,

You can create a clearing account in your company A and use that account to pay the bill. This will zero out the account in your company A. However, I'd still recommend consulting with your accountant to correctly record this.

Here's how to create a clearing account:

In your QuickBooks, press CTRL+A.
Right click anywhere in the Chart of Accounts, then New and choose Bank.
Hit Continue and enter "Clearing Account, Barter Account, or Wash Account" in the Account Name field.
Leave the Enter Opening Balance empty. Then, click Save & Close.

Once done, create a journal entry and use the clearing account. Here's how.

Go to Company, then Make General Journal Entries.
Enter the A/P from which you're moving the account. Then, the Clearing account.
Hit Save & New. Then, create a second journal entry and add the Clearing account and A/P account in paying your bills.
Link the two journal entries together.
Click Save & Close.

You can read more about the clearing account in this article. You can also visit our page for more helpful related articles. Feel free to check this link: Banking and bank feeds.

Thanks for coming in to Community. Please know that you're always welcome to drop-by anytime soon. Have a great day.

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Bill paid out of incorrect business bank account