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AnnetteEu
January 4, 2024
Question

Hung amount in asset account

  • January 4, 2024
  • 1 reply
  • 0 views

We had an asset that was paid for in payments.  We entered in one credit memo to cover the total of the asset balance.  When the payment was made to close out the invoices and credit memo, QuickBooks made a journal entry and added $.01 extra to one of the invoices.  The credit memo added up to $6,105.80 but the auto journal adds up to $6,105.81. When we looked at the Cash Balance Sheet the account had a balance of (.01) and the Accrual Balance Sheet and the Chart of Accounts had a balance of zero.  We made an adjusting entry to correct the Cash Balance Sheet and now the Cash Balance Sheet shows zero and the Accrual Balance Sheet and the Chart of Accounts show a balance of (.01).

Does anyone know how to fix this so the asset shows zero on both types of Balance Sheets and the Chart of Accounts? 

1 reply

J
JuliaMikkaelaQ
January 4, 2024

Hi there, @AnnetteEu.

 

Let me share some information about the system generating automatic journal entries in QuickBooks Online.

 

In QuickBooks Online, if you edit a payment and link it to a different invoice, you may see a System Administration event for a change to the original invoice. Thus, the system will generate an automatic journal entry to fix the differences. With this, I recommend checking the Audit log for the transactions that might cause the discrepancy. 

 

On the other hand, if there's no discrepancy detected in the audit log, you can delete the automatic journal entry to remove the extra $0.01 in your account as an alternative. This way, it won't show as the extra amount in the Balance sheet and the Chart of Accounts. Also, to ensure the accuracy of all your relevant account balances, you can consult an accountant for further guidance. 

 

Furthermore, you might want to read this article as your guide in reconciling your accounts once everything is settled: Reconcile an account in QuickBooks Online. 

 

Let us know if you have other questions about managing your asset balances and other QuickBooks-related concerns. The Community will always be here to lend you a hand to help you manage your business. Have a nice day! 

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