How can I enter a payment on a bill that was paid by a related company?

A bill was paid (in error) by a related company.  We have an account set up that records all transactions that were made between companies.  It is called "due to related company".  The outstanding bill is on one company but was paid by another.  How do I enter the payment as it's not coming out of our bank?


Hi lindawestcott

For recording this bill payment, I'd suggest creating a journal entry. 

The accounts to use would be the Due to related company you mentioned and the Accounts Receivable. You can then make a payment to this bill, making sure you tick both the bill created and the journal entry as well. You may also ask your accountant for assistance to make sure the journal entry is created correctly.

Leave a comment below if you have any other questions or clarifications.

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