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worldtrav9
September 29, 2022
Question

How Clean Up Accounts Receivables in QBOnline from prior years

  • September 29, 2022
  • 1 reply
  • 0 views

I use QuickBooks Online to help a local non-profit. They used a desktop version of QB for many years.  In June 2022 we migrated the old desktop version to QB Online. 

My role is to help them prospectively keep their records in order, which is easy to do. Volume is manageable. 

In the past, entries were not accurate -- or -- not entered -- bank accounts were not reconciled, etc.
Their CPA processed the 990 tax filing each year and recorded a lot of journal entries.
For historical record keeping --- we are going to refer to the old desktop version for the period prior to 1/1/22.  We will refer to the QB Online version for the period on and after 1/1/22.

I decided to rebuild 1/1/22 and thereafter.  All transactions are complete and accurate for 1/1/22 and after.  Bank accounts are reconciled.  Activity is low volume for this non-profit.  I was able to resolve the Accounts Payable -- and -- it is now correct at zero.  However, I am concerned with how to fix the Accounts Receivable.  There are about 100 transactions in the register that date back to 2008 for $87K.  There are only 5 current invoices outstanding that we are awaiting payment for a total of $38K,  The remaining 95 need to be gone ($49K) -- but -- how to do this????  Can I delete these 95 transactions or void them??  As I progress along with this project, I probably should have just built a brand new company effective 1/1/22; but I did not.  We thought it would be helpful to have all the chart of accounts, customers, vendors and history of donations helpful.   I am so close to completion -- except for this A/R situation.

You help is greatly appreciated.
Thanks.

1 reply

G
GebelAlainaM
September 29, 2022

Hello, @worldtrav9. I appreciate all your efforts in doing all the things to make your book accurate and you're close to it. I'm here to help you clean up the Account receivables from the prior years.

We can create Journal Entry (JE) and then reverse it to clear any accounts receivable in QuickBooks Online. You'll just have to enter a date of the end of the time period and set it to reverse on the following day. But before you proceed, I would highly suggest consulting with your accountant. This way, we can ensure that you enter the transactions accurately and avoid data messing up with your accounts.

Here's how:
 

  1. Click on + New, then under the Other column select Journal entry.
  2. Type in the Journal Date.
  3. Below the Account drop-down, choose the account affected by the transactions, then enter the amount in the Debit column.
  4. Add the Accounts Receivable on the next line.
  5. Select the customer's name in the drop-down.
  6. You can enter a note in the Memo field.
  7. Then select Save and close to record the transaction.
     

After that, you're now ready to reverse it, here's how:
 

  1. Click the Search icon on the toolbar.
  2. Locate and open the journal entry you created.
  3. Elect Reverse.
  4. Change the Journal Date to one day after the original journal entry's Journal Date.
  5. Then click Save and Close.
     

For detailed information, please check out this article: Resolve accounts receivable or accounts payable balances on a cash basis balance sheet in QuickBooks Online.

I've also added this article to understand that some of the default or special accounts can’t be modified: Manage default and special accounts in your QuickBooks Online chart of accounts.

You got me always if you have any other concerns or clarification in managing your account receivable in QuickBooks Online. Stay safe!

W
worldtrav9Author
September 29, 2022

Hello - thank you for your quick reply.  I have another question regarding this subject:  There are a number of invoices that were created over the years -- and --- the money was received and deposited into the bank account -- however -- it was a deposit transaction on its own -- it was not connected to the invoice.  So, the invoice is laying out there.  Can't I delete these types of invoices?  Thanks for your guidance.  It is greatly appreciated.

A
AileneA
September 29, 2022

Yes, you can delete the transactions that are not connected to the invoice, worldtrav9.  

 

Let's me share some information what will happen when you delete an invoice. 

 

When you delete an invoice, you will remove it completely. The invoice will no longer show up in any accounts or reports. Delete an invoice only when you do not require any record of the invoice.

 

You can use the Batch action function to delete multiple invoices. Here's how:

 

  1. Go to the Sales menu, then select the Invoices tab.
  2. Check the invoices you want to delete (or check the box column to select all of them). 
  3. Click the Batch actions button.
  4. Select Delete.

 

However, I recommend seeking assistance with your accountant. They'll be able to guide you when deleting your transactions and ensuring the accuracy of your accounts. 

 

Need to take care of other transactions by voiding or deleting them? This article can help you out with the details: Void or delete transactions in QuickBooks Online.

 

Know that our door is open 24/7 if you have any additional QuickBooks-related concerns. You can also click the REPLY button below if you need further assistance in QuickBooks Online. Rest assured, Our dedicated experts are always around to help you. Take care, and enjoy your day!

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