QB Issue Resolution:

Journal entries should be the exception when using QB, they often do not work as you think they should, and  when you use inventory type items they never work for inventory. It is much better to use the forms on the home page the way QB is designed to be used.    Journal entries also bypass accrual/cash reporting, and will not show on many reports.

enter the bill and the expense it is for
on the next line select the liability account you set up first for due to director
enter the amount of the bill as a negative number, save

then pay the liability

if the bill is already entered, edit it and add the due to director account as stated

Resolution for Issue 'accounts payable settled by director not through bank' available: Yes (Solved).
Source: Intuit Community forum.

accounts payable settled by director not through bank: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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