QB automatically creating incorrect JE when entering vendor invoices

Thanks for reaching out to the Community, Chris97277.

When a vendor bill is created in QuickBooks, a journal entry is automatically generated to record your transaction. The bill increases your Accounts Payable since it's a liability, and adds a corresponding increase to an expense or asset account.

The bill represents a liability. This is money your company owes to the vendor and is recorded as a credit to Accounts Payable. At the same time, an expense or asset account is increased by your bill's amount, reflecting goods or services you received.

You can learn more about entering bills by reviewing our Enter bills article.

I'll be here to help if there's any additional questions. Have a great Thursday!

Hi Zack,

I appreciate your response, but that does not help. I understand A/P should be credited, but that is not what QB is doing. Whenever I enter in a vendor invoice, QB is creating a JE to credit employee reimbursements. It is not crediting A/P and I am not sure why it is doing that. I need help trying to figure out why QB is not properly crediting the A/P account.

Hello there, Chris. Let me provide you with more information on what is happening with the posting of your vendor invoice/bills.

When entering vendor invoices in QuickBooks Online (QBO), the default posting account for vendor transactions should be Accounts Payable (A/P). If the Employee Reimbursements account is being credited instead, it’s possible the A/P account was renamed to Employee Reimbursements, which can create confusion in how bills are recorded. You can verify this by checking the Audit Log for recent changes to your Chart of Accounts.

If this is the case, you can change the name of the Employee Reimbursements account back to Accounts Payable.

Here's how:

1. Go to the chart of accounts and locate the Employee Reimbursement account.
2. Click the dropdown arrow next to View Register and select Edit.
3. Change the Account name to Accounts payable.
4. Once you've made this change, click Save.

If this is not what you are experiencing, I would appreciate it if you could send a screenshot of the Employee Reimbursement account set up from your chart of accounts. This would help me isolate your concern and provide a better solution.

For the created Journal Entries, you can delete those to avoid duplication.

If you need further questions or help, feel free to comment below.

@Chris97277 

The response from @Dandie_A must be AI-generated.  It makes no sense to me.

I've never seen a bill post a credit to anything other than A/P.  Just to confirm, we're referring to vendor bills, correct?  You have been referring to them as "invoices" which, in QB terms, are issued to customers, debit A/R, and credit whatever income account is assigned to the product/service selected. 

Can you run a Transaction journal for one of these bills and post a screenshot to confirm that QB isn't crediting A/P?  Go to a bill that's posting a credit to Employee Reimbursements, click More > Transaction journal.  The transaction journal will look like this:

@Rainflurry 

Here is a screenshot of the issue I am having. I created a test vendor bill and QB automatically credited it to Employee Reimbursements instead of A/P.

@Chris97277 

I assume Employee Reimbursements is an A/P account, correct?  The only way I can see this happening is if, somehow, the default A/P account was renamed "Employee Reimbursements". If the default A/P account is renamed, QB will still post the A/P credit to that account.