How to: Zeroing out Vendor Account?

Let me help you write off vendor balances in QuickBooks Desktop, Erss.

You may have small balances that are the result of an error, an overpayment, or an underpayment. This costs more time and materials to collect or pay the amount due than it would be to clear it from your accounts. We can zero out the balances to remove the amounts. Let's make sure to consult your accounting professional before trying any of these options. We can create a General Journal Entry to write off the amount. 

1. From the Company menu, select Make General Journal Entries.
2. In the Make General Journal Entries window, change the date and fill in the entry number if necessary.

For vendors with overpayment:

1. Click the Account field and select Accounts Payable from the dropdown list.
2. Enter the amount under the Credit column, tab to the Name column, and select the vendor name from the dropdown list.
3. In the next line, choose the offset account and enter the amount under the Debit column.

For vendors with underpayment:

1. Click the Account field and choose Accounts Payable from the dropdown list.
2. Enter the amount under the Debit column, tab to the Name column, and select the vendor name from the dropdown list.
3. In the next line, select the offset account and enter the amount under the Credit column.
4. Press Save & Close.

Then, apply the journal entry to the existing debit/credit:

1. From the Vendors menu, select Pay Bills.
2. Select the bill and choose Set Credits.
3. Under the Credits tab, select the available credit and select Done.
4. Press Save & Close.

You can check out this article for more details: Write off customer and vendor balances. I've added this link about what reports we can run to review your financials: Understand reports.

I'll lend my ears if you have other concerns regarding your vendor entries in QuickBooks. I'll make sure to work something out for you. You have a good one.