It’s important to note that a bank account is classified as an asset in QuickBooks, and therefore, it cannot function as an equity account, @sw1222. However, an alternative is to create an expense or check transaction, since we are essentially transferring funds between accounts. I’d be glad to help you navigate this process.
As suggested by FishingForAnswers, we can set up the first line using either a bank account or another asset. Then, we can designate the second line to an equity account that shows the negative value of the payment. This approach will allow you to record the payment while maintaining a net zero effect on your accounts.
To do that, here's how:
- Click on the +New button, then Expense.
- Fill in the required details, including the Payment account, Payment Date, and Payment Method.
- In the Category details section, enter the bank account category in the first line.
- On the second line, choose the equity account and enter the negative value of the payment.
- Complete any other necessary details.
- Hit Save and close once you’re finished.
Following this, you’ll be able to match the transactions appropriately. Additionally, it's essential to reconcile your accounts regularly to ensure they remain accurate and up-to-date.
If you need further assistance with matching transactions, reconciliation, or any other banking inquiries, our QuickBooks Live Expert Assisted service is available to help.
Remember, we're always here to help if you have further questions about recording credit card payments, matching transactions, or reconciling accounts in QuickBooks Online. Please click the Reply button and we'll get back to you promptly.
