We made a payment in October for construction work that was done in September. I was asked to make a journal entry in September to reflect the expense and payable and a reversal in October.
I made a journal entry in Oct. debiting AP and crediting the appropriate expense account. Next, I made a journal entry in Sept. crediting AP and debiting the expense account. Now, when I go to the Pay Bills screen, the September journal entry shows up with an amount due. How can I remove this from the Pay Bills screen?
Thanks for visiting the QuickBooks Community, @marthaw,
I can help you resolve this billing question in QuickBooks.
Creating a journal entry crediting Accounts Payable will increase the liability balance. Even if you make a reversal, this entry will show as outstanding balance because we can't apply a payment towards a JE.
To resolve this, you will need to delete the journal for September and recreate it as a bill. A bill works similarly as creating a JE, hence, its transaction journal credits A/P and debits the bank.
To delete a journal entry, click the Delete button at the top.
Once done, create a bill dated for September using the Vendors tab and selecting Enter Bills. See this:
When you're done, link the journal entry payment for October by clicking the Pay Bill option at the top of the bill.
To use the journal entry as payment, click on Set Credits. Mark the JE for October under Credits tab. Once you're done, press Pay Selected Bills. See this: