Because you used a Balance Sheet function (AP) for another Balance Sheet function. That means it will show, or the Balance Sheet is not In balance.

You also just moved a Liability to a Liability. In Circles.

If you intend to use Bills for this, rather than checks or Memorized Checks, you […]

Resolution for 'alance Sheet issue: 'Why does accounts payable appear at year end on a cash basis company for capitalized costs?' available: Yes.

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

For more information about resolving issues related to alance Sheet in Quickbooks/QBO or to get support for the issue 'Why does accounts payable appear at year end on a cash basis company for capitalized costs?', click the link below: