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Tin18
October 14, 2021
Solved

Multiple Accounts Payable and Accounts Receivable in QBO

  • October 14, 2021
  • 4 replies
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Can I set up multiple Accounts Receivable and Accounts Payable in Quickbooks Online?

    Best answer by ReymondO

    Good day, @Tin18.

     

    Yes, you can set up multiple Accounts Receivable (A/R) and Accounts Payable (A/P) accounts in QuickBooks Online (QBO). However, your bills and invoices will automatically be posted on the default accounts. These are the ones created when you set up your company or those you selected during conversion.

     

    Here's how to add a new account in QuickBooks:

     

    1. Go to Settings and select Chart of Accounts.
    2. Choose Accounts receivable or Accounts payable in the Account Type.
    3. Select the detail type and enter its name.
    4. Click Save and Close.

     

    While a QBO company can have multiple A/R and A/P accounts, it's generally recommended to have one account.

     

    The following article contains additional insight into this: Can I Change the Default Accounts Receivable or Accounts Payable Account?. 

     

    The Community has your back and is always happy to help. Have a good one.

    4 replies

    R
    ReymondOAnswer
    October 14, 2021

    Good day, @Tin18.

     

    Yes, you can set up multiple Accounts Receivable (A/R) and Accounts Payable (A/P) accounts in QuickBooks Online (QBO). However, your bills and invoices will automatically be posted on the default accounts. These are the ones created when you set up your company or those you selected during conversion.

     

    Here's how to add a new account in QuickBooks:

     

    1. Go to Settings and select Chart of Accounts.
    2. Choose Accounts receivable or Accounts payable in the Account Type.
    3. Select the detail type and enter its name.
    4. Click Save and Close.

     

    While a QBO company can have multiple A/R and A/P accounts, it's generally recommended to have one account.

     

    The following article contains additional insight into this: Can I Change the Default Accounts Receivable or Accounts Payable Account?. 

     

    The Community has your back and is always happy to help. Have a good one.

      T
      Tin18Author
      October 15, 2021

      Got it! Thank you, @ReymondO .

      W
      windrushfarm
      November 16, 2022

      Hi. I would like to have two types of invoices in my system as I did with Desktop. One for customers that has 110 Accounts Receivable as the A/R posting account and one for Donors that has 112 Pledges Receivable as the A/R posting account. How do I do this?

       

        Q
        QueenC
        November 16, 2022

        Hello there, @windrushfarm.

         

        Your default Accounts Receivable is the one that was created when you set up your company in QuickBooks Online or those you selected during conversion. However, if in your case you want to have two invoices to be recorded in their respective Accounts Receivables, you can do either one of the following:

         

        First, set up parent and sub-customers to group your open receivables. This allows you to group and sub-total your open receivables by the parent customer. Here's how:

         

        Step 1: Create a parent customer

         

        You must create a parent customer for each Accounts Receivable type you need in order to be able to group your open receivables by the parent customer.

         

        1. Go to Sales and select Customers.
        2. Select New customer to open the Customer information dialog.
        3. Specify a name for the account in the Company field. To locate the parent customer, utilize the name of an Accounts Receivable account on the Chart of Accounts.
        4. Select Save.

        Repeat the steps for every Accounts Receivable you need.

         

        Step 2: Change your existing customers to sub-customers.

         

        You need to identify which customers are sub-customers of the parent you created.

         

        1. Go to Sales and select Customer.
        2. Locate and select the existing customer to change.
        3. Select Edit to open the customer information.
        4. Select the Is a sub-customer checkbox.
        5. Choose the parent customer you created from the Parent customer dropdown list.
        6. Select Save.

        Your open receivables can now be totaled, grouped, and filtered by parent accounts for customer reports.

         

        Another way to group or divide receivables is to use location tracking. You must turn on location tracking first on the Advanced tab of the Account and Settings page. After that, you may set up several locations to utilize by selecting the Location item on the All Lists screen. Please refer to this article for more information about location tracking: Set up and use location tracking.   

         

        When locations are enabled and configured, you may run your report to ensure that every transaction is attributed to a location that is connected with an Accounts Receivable type, and then you can customize it to only report on one location at a time. You must run a separate report for each location, as you cannot run one report and sort it by location.

         

        Here's an article I've included that will help you in customizing your reports: Customize reports in QuickBooks Online. 

         

        Let me know if you have any other concerns in handling your invoices and Accounts Receivables in QBO. I'm always around to help. Have a great day! 

          P
          pmac
          March 2, 2023

          How can using a location be used to set up a separate a/r or a/p account if the bill pay function or cash receipt function does not have a location field?

          Patricia McAvoy

          [email address removed]

          MaryLandT
          MaryLandT
          March 2, 2023

          Thanks for joining this thread, Patricia. I can share a detailed look at how the location tracking works in QuickBooks Online.

           

          The location tracking feature can't be applied to the Pay bills and Receive payment forms. This is useful when tracking your sales, purchases, and profitability by business location. And, it's used to assign an entire transaction, not per line item.

           

          That being said, you're unable to use the location tracking to track different accounts payable and receivables. You'll want to use the Profit and Loss by Location to see which amounts are tracked to the specified location.

           

          To get started, go to Business overview, then select Reports. Once you're there, here’s what you can do.

           

          1. Find and open the Profit and Loss by Location.
          2. Make sure Locations is selected from the Display columns by drop-down.
          3. Customize other data and fields.
          4. Click Run report.

           

          Find out which accounts can be deleted, edited, or merged through this article: Manage default and special accounts in QuickBooks Online.

           

          I hope we’ll stay in touch and get to work together again in the future @pmac. Please don’t hesitate to provide feedback and suggestions to help us improve, even from afar. Have a wonderful weekend!

          B
          BCancel
          March 14, 2024

          Hello @Tin18 

          It's been some time since this post but for you, and for others like me that still can't believe that QBO has so abundant and outrageous limitations like this one, I have this answer. 

          Yes, you can create other accounts, children or siblings, but they are virtually useless. You can't select them in any invoice you enter or check that you issue. You can use them only in journal entries.

          Below is a limited workaround that may work in some cases. Here is the link: Solved: Re: Multiple Accounts Payable and Accounts Receivable in QBO (intuit.com)

          This workaround will not allow you to do what you, and me, would like to do, but it may help with reports if your entities (customers/vendors) can be discretely classified.

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