Pay a bill with a liability account

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:

1. Click the + New button.
2. Select Journal entry.
3. On the first line, click on an account from the Account field.
4. Select the other account you're moving money to or from on the second line.
5. Ensure that the amounts you enter are the same in the Credit column on one line and the Debit column on the other.
6. Enter information in the memo section to know why you made the journal entry.
7. Click Save and new or Save and close.

Once you've created the Journal Entry, you can apply or link it to the open bill using the Pay bills feature.

1. Select the + New button.
2. Click Pay bills.
3. Choose the bill you need to link to your journal entry.
4. Tap Save and close.

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.