How to clear Vendor unpaid bills paid by other party or other loan payable account?

It involves one additional entry.

Open new “Bank Clearing Account” under Bank type

Go to Pay Bills (+ sign > Pay Bills under Vendor Heading)
Select Payment Account = Bank Clearing Account
Select Hand-written check (Starting Check No.) = some payment reference number (or Loan from..)
Click Pay Bills button

Next step is to write a journal entry to clear Bank Clearing Account and to reflect payment from loan account.

Debit the Bank Clearing Account and Credit the Loan Payable to Jim Smith account.

QBO pay bills with clearing account
QBO pay bills with clearing account
Close
loading...
%d bloggers like this: