QuickBooks Desktop sync error: The Account for this transaction must be of type Bank

Why the sync error occurs

A sync error occurs when the General Ledger account associated with the payment in Bill.com isn't a Bank account type. When paying bills in QuickBooks Desktop, a Bank type account must be used.

How to fix the sync error

Update Bill.com Money Out Clearing account

The Bill.com Money Out Clearing account allows payment reconciliation and is required for Bill.com sync entries to function properly in QuickBooks.

For Bill.com payments, the payment account is listed in the Bill.com Money Out Clearing account field. Follow these steps to update the account:

Select Settings
Select Preferences under Sync
Select Edit
Select the Bill.com Money Out Clearing account that's automatically created for you in Bill.com
Select Save
Sync again

Change the account

If the Money Out Clearing account is already selected in the Sync Preferences, the type of account may have changed. Follow these steps to update the settings:

Select Settings
Select Chart of Accounts
Select the chart of account
Select the edit icon
Select Bank in the Type field
Select Save
Sync again

Things to know

For Offline Payments, the Payment Account can be updated to a Bank type account on the bill payment record by selecting the edit icon.