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Monica Barreda
October 11, 2023
Question

Changing default receivable account for QB online

  • October 11, 2023
  • 2 replies
  • 0 views

Hello everyone-

I could use some assistance with QB online. I need to change the default receivable account. I am currently assisting a company and they have been invoicing their customers for several years and all their sales are hitting a receivable account that they no longer use. Can anyone point me in the right direction of fixing this issue?

2 replies

MorganB
MorganB
October 11, 2023

Thanks for joining us here in the Community, Monica Barreda.

 

You've come to the right place for assistance with QuickBooks. I'd be glad to show you how your client can edit their receivable account in QuickBooks Online.

 

This can be done by editing the products and/or services they're invoicing to customers. Here's how:

 

1. Hover over the Sales tab in the left navigation menu and click Product and Services.

2. Locate the item you'd like to change the account for and select Edit on the right.

3. In the edit panel you can make changes to the income account for that particular product or service.

4. Choose Save and close when you're finished.

 

The following article provides additional info about editing products and services in QuickBooks Online.

 

These steps would need to be completed for each sales item that is posting to the old account. Please don't hesitate to reach back out if you have any other questions.

M
Monica BarredaAuthor
October 17, 2023

Thank you for this information. I was contemplating creating a new receivable account and then merging the old receivable account with the new account that is being used. What do you think? Will this automatically link the products to the new account? Then the other thing was just changing the name of this receivable account to just accounts receivable, but i dont like doing that because i like to show the change for accounting purposes. I tried reclassification, but cant do that because of the product inventory. Can i gain some insight from you on the merging of the accounts receivable? Thank you again for your assistance on this issue. 

J
Jelayca V
October 17, 2023

Thank you for getting back to us, @Monica11_2. Let me share with you some insights regarding the merging of accounts in QuickBooks Accountant Online. 

 

Yes, you can to merge accounts in QuickBooks Online, but you need to keep in mind that merging accounts is permanent. Merging the old A/R and new account will move all the data to one making it a default account. 

 

This would mean that all the the incoming invoices/sales automatically will be posted there. 

 

Furthermore, you can change the name of the receivable account to just accounts receivable, you can do so by editing the account name in QuickBooks Online.

 

Here are the steps to follow:

 

  1. Go to Settings and select Chart of accounts.
  2. Find the Accounts Receivable account and select Edit.
  3. Change the Account name to Accounts Receivable.
  4. Hit Save.

 

Furthermore, if you want to group your open receivables, you can set up parent and sub-customers to group your open receivables. This allows you to group and sub-total your open receivables by the parent customer.

 

Feel free to visit these articles if you want to learn more about managing default accounts and merging duplicate accounts, customers, and vendors in QuickBooks Online.

 

I hope this information helps you. If you have any further questions or concerns regarding the merging of accounts in QuickBooks Accountant Online, please don't hesitate to reach out to us. Have a great day!

 

 

B
Buddhalite
July 31, 2024

I'm stumped.

 

This client wasn't using A/R when I set them up as they said all their invoicing was handled through third party software.

 

Well, there's a A/R account and a sub account for doubtful allowance.

 

They went in and started creating invoices - and everything is going into the allowance account rather than the A/R account. 

 

In this case - what can I do to fix this? I find nothing anywhere that allows me to change this - and the account is tagged properly and named propely - I'm totally confused.

 

Any help?

J
JamaicaA
August 1, 2024

I can guide you on how to record the invoices into the correct A/R account in a breeze, @Buddhalite.

 

QuickBooks relies on a third-party app for data, so it uses the account provided by the app to record the invoices. That's why the ability to choose which account to use for recording is unavailable.

 

Since the third-party app doesn't use any A/R account, the system puts the transactions into a subaccount under the default one. To merge everything into one place, follow these steps:

 

  1. Go to the Sales menu on the left panel and select the Chart of Accounts.
  2. Find the Doubtful allowance, then click Edit under the dropdown.
  3. Untick the Make this a subaccount / is a subaccount checkbox (depending on your View).
  4. Change the sub-account's account name to the same as the default one.
  5. Tap Save.

 

 

If you'd like to update past transactions, refer to this article: Change the account for a product/service item. 

 

Additionally, you can generate inventory reports to see your best-selling items and their status. Here's a guide with complete instructions: Use reports to see your sales and inventory status in QuickBooks Online.

 

Don't hesitate to post again here if you have any other concerns about changing the accounts of your product items in QBO. I'm always here to help. Have a great day ahead.

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