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grozaconsulting
February 6, 2023
Question

Why should credits on my customers account effect my register and show more than there really is? Transactions are not reconciled, but they effect my Balance Sheet.

  • February 6, 2023
  • 1 reply
  • 0 views
I have customers who pre-pay their (HOA) invoices.  I receive the check as a payment under their account and it is left as a credit on their account until a new invoice is created.  

As I create the new invoice, I automatically receive payment on them and pay with the credits on my customers account. 

 However on review, they are not reconciled in the register, and the bank balance shows an increased amount on the Balance sheet due to those payments. How do I fix this to show the true amount?  What am I doing wrong?  My bank reconciles correctly each month, but these transactions stay un-reconciled.

1 reply

R
Rea_M
February 6, 2023

Hello there, @grozaconsulting.

 

I'll gladly share insights on how customer credit affects your account register and your balance sheet in QuickBooks Online (QBO), so you can manage your income transactions accordingly.

 

There are two dates and balances you need to consider in QBO. The actual balance in the bank and the QuickBooks register balance. When your register's balance on your bank reconciliation doesn't match the value on your balance sheet, it's likely due to the cleared transaction from the next month.

 

Moreover, financial reports in QBO always contain register balances as of the report date. The bank balance won't change, but register balances at any date will if you enter new entries after a reconciliation.

 

In case you wish to learn more about the differences between a Balance Sheet report and other reports and why it may not match the register, please see this article: Run a Balance Sheet report in QuickBooks Online.

 

Also, you may want to check out this article as your reference in case you need to fix an Accounts Receivable (AR) or Accounts Payable (AP) balance on a cash basis balance sheet in QBO: Resolve accounts receivable or accounts payable balances on a cash basis balance sheet in QuickBooks Online.

 

Please feel free to leave a comment if you have other concerns about managing transactions in QBO. I'm always ready to help. Take care, and I wish you continued success, @grozaconsulting.

G
grozaconsultingAuthor
February 6, 2023

Thank you so much for your quick reply.  After your explanation, I understand it better and can explain it to the Board Treasurer.  I did some further checking and all these transactions are pre-payments made in their respective periods.

 

However, I have one other question to do with transactions.  Every year the HOA renews their Master insurance, which is invoiced to the owners.  But there are always those who don't pay it on time, so the HOA pays the balance due, then invoices the customers to maintain the policy.

This last year, we transferred $40K from their Money Market account to their Operating account.  QB "transferred" it in the system and the deposit reconciled on both accounts. 

 

Then completed a journal entry to move those funds from the Operating account (debit) to the Insurance Income account (credit) so I could cover my check and it was appear correctly on my P&L.  But now, the JE entry shows up in my Operating bank register as another deposit.

 

I deleted the initial entry and it thru everything off.  Any ideas?

 

Thank you!

JessT
JessT
February 6, 2023

Hi grozaconsulting,

 

The deleted journal entry was posted to your operating and income accounts. Therefore, your books were affected when it was deleted.

 

There's seems to be a lot of connected transactions in your records. Because of this, I recommend contacting our QBO Support so they can check your transactions. It's hard to provide steps without a visibility on your transactions.

 

  1. Click on Help and choose the Search tab.
  2. Click Contact Us at the bottom.
  3. Enter a sense to describe the issue.
  4. Select Chat or Get a callback.

 

You can check out our Helpful Articles if you want to see some references for QB Online.

 

Let me know if you have other questions in mind.

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