Question

Credit balance showing in A/R aging report

Forum|Forum|5 years ago
September 25, 2020
3 replies
0 views

I see several customer accounts that showing credit balance in A/R aging report. But when I go to the account, the balance is zero, no credit. There are some old inactive accounts and I thought I will clean them up but I don't understand this. There is no outstanding invoice to offset, just a credit amount.

QuickBooks Desktop

LieraMarie_A

Let me help you figure out why you see an open balance to your Accounts Receivable Aging report, @suepark268.

What's the reporting period you've pulled up? When running this report, we'll have to modify the date to Today to list each customer's current outstanding balance. This way, we can identify the customers that have active payables as of today and the number of days they have been outstanding. I'll show you how.

Go to Reports.
Select Customers and Receivables and choose A/R Aging Detail.
Click the Dates drop-down menu and select Today.

Once done, that should conform to customers' account balances. Refer to these articles to learn more about running an A/R Aging report and how to write off uncollectable balances:

Please let me know how it goes or if you have any follow-up questions. I'll be here if you need further assistance. Have a wonderful day, @suepark268!

S

suepark268Author

Hi Liera,

Thanks for your input. Perhaps I did not explained myself clearly. The date on my report is Today as it is the default setting. And changing of the date does not change what I am having issue with.

I know sometimes there can be un-paid invoice with credit that offset each other and I can use the credit to pay the invoice.

What I am having trouble is that, in the A/R report, there are some customers that show credit balance as if they over-paid when the fact is that there is not any over payment. When I go to the customer account, it shows zero balance. However, the strange thing is that under customer information on the right side of the screen, it shows credit open balance. So, on the left side where all the customers name appear with their balance, it shows zero. But if I click on the customer 's name under the customer information shows open credit balance. The credits showing in these accounts represent one payment that should have paid the corresponding invoice.

I hope you can see what I am saying here. Thanks for your help.

KlentB

Thanks for adding additional information about your concern, suepark268.

I'll make sure that you can get accurate reports at the end of the day.

The unusual behavior that you've encountered is a sign of data integrity issues. We can utilize the Verify and Rebuild tools to scan your company file and fix the data issue right away. Here's how to use it:

Choose Window, then click Close All.
Select File from the sidebar menu.
Go to Utilities, then select Verify Data.

If the tool finds no error, then everything is fine with your company file, and no further action is needed.

If you find that your data has lost its integrity, we'll have to run the Rebuild tool to fix the damage. Feel free to follow these simple steps:

Select File from the sidebar menu.
Go to Utilities, then select Verify Data.
Click OK to backup your company file.
Select where you want to save your backup, then hit OK at the bottom of the QuickBooks Desktop Backup window.
Follow the on-screen instructions, then click OK when you get the message "Rebuild has completed".

Additionally, here's an article that you can read to help streamline the reporting process and get the most out of QuickBooks’ financial reporting capabilities: Customize Reports.

As always, you can find me here if you have further questions or any other concerns. Have a great rest of the day.

J

jlocke1979

I had this exact problem as well. After lots of investigation, I realized that the invoices that were being paid off (by the Credit memo) were invoices that were dated into the future. As a result, when you pull an A/R Report dated today,...it will not (or does not) capture the future invoices (that are after the report date).

As a potential workaround. I've accelerated the date of said future invoices (to date of credit). This (to me) seems like an unnecessary step.

A better approach would be if the report would not pick up credits that have been applied to future invoices (as they aren't really outstanding A/R) .

For some evidence of my point of view,....,, we use a separate Revenue Accounting System (that pulls from our exact same QB general ledger) and that system does not have this same reporting problems in their A/R report.

J

jlocke1979

I had this exact problem as well. After lots of investigation, I realized that the invoices that were being paid off (by the Credit memo) were invoices that were dated into the future. As a result, when you pull an A/R Report dated today,...it will not (or does not) capture the future invoices (that are after the report date).

As a potential workaround. I've accelerated the date of said future invoices (to date of credit). This (to me) seems like an unnecessary step. A better approach would be if the report would not pick up credits that have been applied to future invoices (as they aren't really outstanding A/R) .

For some evidence of my point of view,....,, we use a separate Revenue Accounting System (that pulls from our exact same QB general ledger) and that system does not have this same reporting problems in their A/R report. To me this is a flaw in the report as I don't want to know about a Credit if it's already applied to a future invoice.

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