Hi there, @waqassultan.
I'll share insights about bill payments and journal entries in QuickBooks Online so you can make the adjustment.
Yes, bill payment is a transaction that targets to reduce the amount of your Accounts Payable (A/P) account. You may adjust the bill payment entry using a journal entry if we're talking about the same supplier's name.
However, I am unable to provide the exact names of accounts to use in recording your journal entry. Therefore, I recommend contacting your accountant for needed advice in choosing the account category.
I'm adding a couple of articles below to learn more about the sources and targets of these transactions:
Now that you're able to transfer your A/P balance, I'm including this reference for other modes of payment to use in paying your vendors: The Difference Between Bills, Checks, and Expenses in QuickBooks Online. In this reference, you're able to identify what transaction to enter based on how and when the vendor payment is given.
If there's anything else that I can help you with aside from working with bill payments and journal entries in QuickBooks, please let me know in the comments below. Don't forget to include my name, @JonpriL, so that I can get back here and offer help. Take care always, @waqassultan!
