Let me share some information on why does your journal entries shows as a payment, @mm1112.
To clarify, when you mention "funds we owed out," are you referring to payments made to your vendors or suppliers? When you record a journal entry to pay a bill, QuickBooks will treat them as credits. To link them together, you can use the Pay Bills feature.
Choosing the correct categories in the journal entries is crucial. If you don't want the transaction to show in a bank or Undeposited Funds account, we can set up a clearing account. However, for the accuracy of your financial data, it's best to seek guidance from your accountant.
To create a clearing account, here's how:
- Sign in to your QuickBooks account and go to Accounting on the left-side panel.
- Select Chart of Accounts.
- On the Chart of Accounts screen, click the New tab.
- Choose a Bank for the Account Type. You may choose any detail type you want for your clearing account.
- Type in the Name for the clearing account.
- Ensure you do not type in any amount on the balance before clicking Save and Close.
- Go to + New.
- Select Pay Bills.
- Choose a bill for your vendor from the list. You'll see the available credit with this vendor in the Credit Applied field.
- Please complete the rest of the field like you usually do.
For future reference, you can visit this article to learn how to reverse a journal entry: Reverse or delete a journal entry in QuickBooks Online.
We're all here to help you if you need further help regarding your journal entries show as payment. The Community space is always here to assist you.
