Clearing Bill from Bill Pay that the vendor says you don't owe

Thanks for reaching out to the Community, 2robertc.

You can consider closing out a disputed bill using a General Journal Entry. This method allows you to record the write-off to a non-P&L account, without affecting your 2025 Profit & Loss.

Before doing so, I'd recommend reviewing our journal entry article, and also working with an accounting professional to confirm the best way to proceed. Journal entries are a last resort for entering transactions. Use them only if you understand accounting or when following the advice of your accountant.

If you're in need of an accounting professional, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

I've also included a detailed resources about working with bills which may come in handy moving forward:
 

• Void or delete a bill
• Learn about QuickBooks Bill Pay

Please feel welcome to send a reply if there's any additional questions. Have a great Monday!

@2robertc 

Are you on cash or accrual basis?  What account(s) are on the original bill for $145.84?  Was it an expense account?  

Create a credit memo for $60.01 and use the same account on the credit memo as you used for the bill on $145.84, unless it was an inventory item.  Apply the two credit memos to the bill to "pay" it.  

If you're on cash basis, the new credit memo will offset the account on the bill, and there will be no impact on your financial statements.  If you're on accrual basis, it will post to your P&L as an expense reduction which is correct because you claimed the expense in 2023 so you need to reverse it in 2025.