I used DD to pay independent contractors however the transaction is appearing twice. Once as a DD an once as a debit from quickbooks. Why is it appearing twice?

It's nice to have you here in the Community, @mpschwamberger.

I'm here to share the reason why the direct deposit transaction for your contractor is showing twice on your register.

A direct deposit will show as debit if you've allocated the direct deposit to a bank account instead of an expense account. To fix this, you'll need to check and change the account where the direct deposit has been distributed. 

To do that:

1. Got to your bank register.
2. Look for the direct deposit transaction and double-click it.
3. Change the Payee account to an Expense account.
4. Hit on Save. 

To give you more details regarding the process of paying your contractors through direct deposit, please see this reference: Learn how to pay your contractors using direct deposit in QuickBooks or Intuit Payroll.

Let me know on how things turn out. I got you covered if there's anything else you need. Have lovely day!

Obviously, I did not do it correctly or did not understand the solution. It is still showing up twice.

Thanks

Thanks for getting back in here, @mpschwamberger.

The steps provided by my colleague @BettyJaneB is right. For the direct deposit not to show twice in your register, ensure to choose the expense account. 

I appreciate you following the steps given above. But since it still shows duplicate transactions, I encourage you to contact our support team. This way, they can investigate this further. 

To reach them, here's how:

1. Sign in to your QuickBooks Online company.
2. Go to the Help (?) menu.
3. Click Contact Us.
4. Enter your concern, and then choose Let's talk.
5. Select Start a chat or Get a callback from the next available expert.

For more details, I've added this article as your reference: Pay a contractor with direct deposit.

Additionally, I've added this to guide you in canceling a direct deposit paycheck.

If there's anything else that I can help you with, please let me know in the comment section down below. Have a wonderful Thursday.

Did you ever figure out how to resolve this? I'm having the same issue!

I was able to fix the account like you showed in the answer and I was able to reconcile the bank transactions correctly.  However, after I was finished my reconciliation QB has a different account balance as my bank is showing now because it had the DD showing as deposits. 

I’m glad to hear that the steps shared earlier helped you fix your account, @rtroupe. I’d like to jump in and provide further assistance in correcting your bank balance.

Before we continue, could you let us know which account you used when recording the payment to your contractor?

Please keep in mind that selecting the same bank in both the Corresponding account in QuickBooks and the Account drop-down list can create a double entry in your register. This will cause the payments to appear in both the Payment and Deposit columns.

If you’ve already followed the steps outlined by my colleague, that should remove the duplicate entry in the Deposit section. I recommend reviewing the payment again and ensuring you select an appropriate expense category to correct your entry. 

Simply follow these steps:

1. Got back to your bank register.
2. Search for the direct deposit transaction and double-click it.
3. Make sure to select an Expense account in the Payee account column.
4. Click Save. 

Since your account has already been reconciled, any changes you make will affect your records. To ensure your books align with your QuickBooks records, I recommend reaching out to your accountant. They can review your register and provide the right guidance for correcting your bank balance.

For more tips in tracking the payments you made to your contractors, check out this article: Set up contractors and track them for 1099s in QuickBooks.

Please keep me updated if you need further help managing contractor payments or adjusting your bank balance. I’m always here to assist!