Is it possible to "pay" a bill a bill with another account type besides Cash/Bank? We are looking into 3rd party payer so when the bill is paid the payment is really getting paid out of a holding account that will be reconciled later and paid out of cash through a JE. However as I expected the accounting team isn't thrilled on the idea of making the holding account a cash/bank account when it's truly an expense account. Anyone deal with a situation like this?

Unfortunately bank accounts and credit card accounts are the only options that NS gives you. Ideally, you're looking for it to be an expense account? It would seem that it would at least need to be an asset or liability account. But regardless, you'll have to create it as a bank account. Unless you go fancy and bypass the bill payment transaction altogether and make use of a custom transaction to pay off the bill. Then you can use any account you want. But that may be overkill and not fit in with your overall business process.

It seems that it's more of a liability to the third party payer. Anyway, you can force its type as bank account then customize your financial statements to present that account under any financial section (expenses or liabilities).

@Luis  Yea that is what I am thinking will be the easiest solution although it's sort of a pain. @Anthony Dixon I don't think there would be any interest in trying to bypass the bill payment transaction, but I could explore that. Thanks for your advice