Negative open supplier balance

Yes, you can do this by creating a Journal Entry (JE), J219. I'll provide you with the steps.

First, create a clearing account to use in the journal entry as a temporary posting account for clearing amounts. Here's how:

1. Go to the Gear icon.
2. Under Your Company column, select Chart of Accounts.
3. Enter an account name (ex: Clearing account).
4. For Account Type, choose Cash at bank and in hand.
5. Fill out other necessary details, then hit Save.

Proceed to enter the JE:

1. Go to +New, and under the Other column, click Journal Entry. 
2. Debit: Select the Supplier's Creditors account and enter the amount that needs to be cleared. 
3. Credit: Select an offset account (e.g., a clearing account) and enter the same amount. 
4. Save and Close. 

It's best to consult an accountant regarding the entries to ensure accuracy and proper classification.

Then, link the journal entry to the open balance using the pay bill:

1. Go to +New, and under the Suppliers, click Pay Bills.
2. Locate the supplier and the exact amount.
3. Mark checked, then select Save and Close.

Check the supplier's open balance and make your supplier inactive.

Here's a reference for entering the journal entry: Create journal entries in QuickBooks Online.

Furthermore, I'm adding this article so you can check and review your finances: Run a report in QuickBooks Online.

If you have any questions or concerns about balances, feel free to reach out. We're here to help.