Hello. how do I treat open invoices from last year.the money was deposited in the company bank account. but my trade receivable balance is high.how do I pass the entries to reduce the receivable balance. thank you in advance

Thank you for reaching out about handling open invoices from last year. I understand how important it is to ensure your financial records in QuickBooks Desktop are accurate, especially your accounts receivable. Let me guide you through correcting these entries so your balances reflect the correct status.

To begin, if the deposit has already been recorded in QBDT but not applied to the open invoices, you need to link the recorded deposit to the outstanding invoices to reduce your accounts receivable balance.

Here's how:

1. Navigate the Customer menu and select Receive Payments.
   
   
2. Choose the customer and check the invoices that the payments cover.
3. Apply the payment to these invoices to ensure the total match.

However, for a deposit that isn't recorded yet, use the Receive Payment to manually enter the customer payment and apply it to the open invoices. Then, create a bank deposit linked to accounts receivable to reflect the funds deposited into your bank account.

For further assistance in managing your accounts in QuickBooks to align with your actual bank and credit card statements, please refer to this article: Reconcile an account in QuickBooks Desktop.

These steps help you resolve your open invoices and accounts receivable balance. If you have additional questions or need further guidance, please don't hesitate to reply below. We're here to help ensure everything runs smoothly for you.