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Hello there, coteel-com. Thank you for reaching out to the Community. Let me share with you how to record paid bills using a liability account in QuickBooks Online.
To begin with, you can't directly pay the bill using the Liability account. Instead, you can create a Journal Entry by debiting the Accounts payable and crediting the Liability account.
Here's how:
Once you've created the Journal Entry, you can apply or link it to the open bill using the Pay bills feature.
For detailed instructions, see this article: Enter and manage bills and bill payments in QuickBooks Online.
Additionally, you can check this article on how to handle bills to be paid later and immediately using bills, checks, or expenses for future reference: Learn the difference between bills, checks, and expenses in QuickBooks Online.
I'm always available to help you manage your bills in QBO. If you have any further questions, feel free to ask. Have a great day.
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