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TDSSMC
October 31, 2018

Accural Basis invoicing customer and balance sheet

  • October 31, 2018
  • 2 replies
  • 0 views

Hello, I have recently taken over a companies QB.

The issue that I am seeing is that the office person was creating an invoice for a customer, then she would recieve a payment and post thru the invoice. But she would not make a deposit. She would do an general ledger journal to debit into cash in bank and credit undeposited fund and sales. Thus leaving the invoice show as open ( not paid).

My questions are:

1. how does this affect my balance sheet

2. Should I void journal or invoice?

    2 replies

    Rustler
    Rustler
    October 31, 2018

    If she used receive payments against the invoice it should show as paid, the only way I can see that not happening (I think) is if she also used the customer name in the journal entry.

     

    a/r and undeposited funds on the balance sheet should show correctly, but the open invoices are an issue IMO

     

    I would delete the journal entry and use make deposits for that amount back dated to the same date as the journal entry

    T
    TDSSMCAuthor
    October 31, 2018

    Hi Rustler my appologies, I meant to say it still shows undeposited in the undeposited accout.

    Do you know how if at all this would affect my balance sheet. Because there is an amount on the balance sheet for undeposited funds and then the general entry is in cash in bank ( because of how she did entry).

    Rustler
    Rustler
    October 31, 2018

    Yes undeposited funds on the balance sheet is showing as an asset, that increases the total assets when that same amount is also shown in the bank account (asset)

     

    qbteachmt
    qbteachmt
    October 31, 2018

    The Invoice is the sale and should not be deleted.

     

    The JE is a great way to corrupt that data file, by posting to UF generically. UF is a self-managing Clearing account; it wants specific transactions In, to have been selected as the specific entry taken to the bank as part of a deposit.

     

    "She would do an general ledger journal to debit into cash in bank and credit undeposited fund and sales."

     

    If she really posted as Sales, she doubled the income for those tax reporting years, as well.

     

    The JE should be deleted, and then Deposits are made properly, to select from the UF pop up, that these amount(s) are part of the Dated Deposit.

     

    Then, the banking can easily be re-reconciled. Just Ignore the beginning balance.

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