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Wade Mask
August 3, 2023
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Opening Balances

  • August 3, 2023
  • 1 reply
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I am about to import our existing customers and vendors. They have opening balances. How will those balances show up as far as being able to match a payments once it comes in or we pay a vendor invoice? How will we process those open invoices that make up the open balances? I hope this makes sense. Thanks in advance!

Blessings,

Wade

Best answer by SashaMC

Good Afternoon Wade Mask,

 

Thanks for chiming in! You may need to import or create each unpaid invoice for those invoices. I encourage you to use my colleague's article to assist with that: Manage outstanding balances for customers and vendors in QuickBooks Online.

 

Regarding the sales tax questions, you would need to verify with your accountant to see the best move. If you don't have one, we offer a ProAdvisor program where you can connect with experts. Many even offer a free consultation. However, sales tax won't copy all transactions. Some taxes will copy as journal entries, especially when moving data from one program to the next. The article below goes into more detail about this.

 

 

If you have any other questions, just let us know! We will do our best to address them. See you later!

 

 

 

1 reply

LieraMarie_A
LieraMarie_A
August 3, 2023

Hello, Wade. Thank you for reaching out! Let me explain how those balances will show up and how you can process open invoices and payments in QuickBooks Online (QBO).

 

When you import your customers and vendors with opening balances, QBO will create transactions to reflect these balances. For customers, these balances will be recorded as open invoices, and for vendors, they will be recorded as unpaid bills.

 

Once you start receiving payments from customers or pay vendor invoices, QBO will help you match these transactions with the open invoices or bills. Here's how the process works:

 

  • Receiving Customer Payments: When you receive a payment from a customer using the Receive Payment feature, QBO will automatically suggest matching open invoices based on the customer and amount. You can review and confirm the match to clear the open balance.
  • Paying Vendor Bills: When you pay a bill to a vendor using the Pay Bills feature, QBO will suggest matching unpaid bills based on the vendor and amount. You can review and confirm the match to clear the open balance.

 

Alternatively, if you wish to add clear details about what your customers are paying for and what you're paying your vendors for, it's recommended to leave the opening balance blank. Instead, add your customer's unpaid invoices or your vendor's unpaid bills to QuickBooks.

 

You may also refer to this article for more info: Manage Outstanding Balances for Customers and Vendors.

 

Additionally, it's important to regularly reconcile your bank accounts to ensure that all the payments and expenses are accurately recorded. It helps identify any discrepancies between your records and your bank statements.

 

Best of luck with your data import! If you have any more questions, feel free to ask. Blessings to you as well!

    W
    Wade MaskAuthor
    August 4, 2023

    Thank you for the help. Two more main topic questions. 

    I understand that QB will create invoices for a customer's opening balance. What about if customer AAA has a balance of $4,822.59 that is from a total of 13 open invoices? How will that look? Will it be one invoice for the balance? Will it automatically send it to AAA? Will it try to add tax? To follow each open invoice, I would think that I need to create an invoice for the balance with no tax since the sales tax was handled in our previous system. Does that sound correct?

     

    Will these customer and vendor opening balances make it so that we do not load the COA opening balances?

     

    Thank you!

    S
    SashaMCAnswer
    August 4, 2023

    Good Afternoon Wade Mask,

     

    Thanks for chiming in! You may need to import or create each unpaid invoice for those invoices. I encourage you to use my colleague's article to assist with that: Manage outstanding balances for customers and vendors in QuickBooks Online.

     

    Regarding the sales tax questions, you would need to verify with your accountant to see the best move. If you don't have one, we offer a ProAdvisor program where you can connect with experts. Many even offer a free consultation. However, sales tax won't copy all transactions. Some taxes will copy as journal entries, especially when moving data from one program to the next. The article below goes into more detail about this.

     

     

    If you have any other questions, just let us know! We will do our best to address them. See you later!

     

     

     

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