Since you already have the entry in ABC
all XYZ has to do is write a check to ABC and use the correct expense account, in the memo block state that ABC paid the expense

Resolution for 'ABC paid issue: 'How to enter money that is owed to another company' available: Yes.

The ABC paid 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 ABC paid issue yourself by looking for a resolution described in the article. If it is a complex ABC paid issue or you are unable to solve the issue, you may contact us by clicking here or by using other ABC paid support options.

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