Sale of accounts payable

In QuickBooks, you typically don’t record the sale of accounts payable directly because accounts payable represents the amount you owe to suppliers or vendors for goods or services that you’ve received but not yet paid. Accounts payable is a liability account, and it decreases when you make payments to your vendors.

If you are trying to settle your accounts payable early by negotiating with your vendors to pay them a reduced amount (sometimes referred to as a “settlement” or “early payment discount”), you would record this as a discount on the payment you make. Here’s how you can do it:

Step 1: Create a Bill Payment:

1. Go to the QuickBooks homepage.
2. Click on the “Create” button (usually represented by a plus “+” sign) at the top of the screen.
3. Under the “Vendors” column, select “Pay Bills.”

Step 2: Pay the Bill with a Discount:

• In the “Pay Bills” window, select the vendor and bill you’re paying.
• Enter the discounted amount in the “Payment” column. This should be the amount you agreed upon with the vendor.
• QuickBooks should automatically calculate the discount based on the terms you’ve set up in your vendor’s profile. The “Discount” column should show the calculated discount.
• Review the payment details to ensure accuracy.

Step 3: Save the Bill Payment:

Review the bill payment details and save the transaction.

This way, you are reducing your accounts payable by the discounted amount, which effectively represents the reduction in your payable liability.

If you’re dealing with a more complex financial transaction, such as factoring accounts payable, you should consult with an accountant or financial advisor for guidance on how to properly account for such transactions in QuickBooks.