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Can anyone tell me how to apply a payment of a vendor bill when the payment is actually made via direct deposit through an outside payroll company?

 
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QuickBooks Team

Re: Can anyone tell me how to apply a payment of a vendor bill when the payment is actually made ...

Hello @aseymour,

 

Let me help you record the payment.

 

First off, you'll need to set up a clearing account. This will be used to move money from one bank to another since the payment was processed by a different payroll company. Here's how:

  1. From the left panel, click Accounting, then Chart of Accounts.
  2. Click the New button.
  3. Under Account Type, select Bank.
  4. Under Name, enter Clearing Account.
  5. Click Save and Close.

Next, add the third party company as a vendor and write check to record the transaction they made through direct deposit. See the steps below:

  1. Click the Plus (+) icon and select Check.
  2. Type in the name in the Payee field, press Enter, then click Save.
  3. Choose the clearing account under Category.
  4. Enter the Amount.
  5. Choose Save and close.

Once done, you can pay the vendor bill using the clearing account. Here’s how:

  1. Click the Plus (+) icon, then select Pay Bills.
  2. Choose the clearing account for the Payment Account.
  3. Select the bill.
  4. Click Save and close.

I've attached screenshots below for your reference.

Please feel free to leave a comment below if you have any other concerns.