To create journal to transfer from Wash Account to Payable:
On the lower left side > click on Account > select New.The instructions here may look like there’s a lot to do but I just want to make sure I got them in detail for you, this will not take your more than 5 minutes to do. We then need to create a journal entry that will transfer the receivable to the payable account but we need to use a ‘wash account’ that will serve as a holding account since QuickBooks will not allow us to simply do the transfer. This sounds like you want to pay a vendor bill using a collectible amount from an invoice. But don’t worry we have workarounds to help you complete the task.
#FREE QUICKBOOKS TUTORIAL ON ACCOUNTS PAYABLE SOFTWARE#
The software is designed to work independently for these two special accounts. It’s really a challenge when you use QuickBooks to record receivable to payable balance.