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cfoland
October 4, 2023
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Clearing Past due invoices that are paid

  • October 4, 2023
  • 2 replies
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I am using version 19 of Quickbooks Desktop. We have AR invoices from 2021 that have been paid. However, the payment was posted as a deposit to the customer instead of as a payment to the Job. The invoices go back as far as 2021 so I can not just "delete" the deposit and reenter as a payment as the FY has been closed.

 

Looking for a way to clear the past due invoices so they do not show in the AR Aging report after I verify that payment was received.

Best answer by Rainflurry

@cfoland 

 

Okay, got it.  You can move the A/R credit from the customer to the job by using two JEs and a Clearing Account.  To do that, set up a bank account in QB called 'Clearing Account'.  This serves as a temporary holding account since, as you mentioned, you cannot post to A/R on both lines of a JE.  Then, create two separate journal entries.  The first JE is a debit to the customer A/R account and a credit to the newly-created bank Clearing Account.  The second JE is a debit to the Clearing Account and a credit to the Job A/R account.  The Clearing Account balance should be $0 and you should now have the A/R credit available to apply to the open invoice.      

2 replies

F
FateCandylaneT
October 4, 2023

We appreciate you reaching out here with your concern, cfoland. I'm here to share details to help your guide when clearing past-due invoices from previous years.

 

Before closing your financial books for a specific fiscal year, it's best to ensure all transactions and accounts are reviewed and categorized to prevent any discrepancies in the future run. Since your accounting data has already been closed and reconciled, clearing these past-due invoices that are paid is best handled by your accounting professional. With this, we recommend consulting your accountant to further provide you with proper guidance in managing these entries and accounts in your company file. This way, your books will maintain their accuracy and be ready for the next fiscal year.

 

Moreover, I'll be sharing this relevant article to help you and your accountant prepare your books and ensure they're ready for the next fiscal year: Year-end guide for QuickBooks Desktop.

 

We'd love to hear more from you if you have additional queries or other QuickBooks-related concerns. Feel free to leave us a comment below, and we'll get back to help you further. Keep safe!

Rainflurry
Rainflurry
October 4, 2023

@cfoland 

 

Make a journal entry and debit the account assigned to the deposit and credit A/R.  List the Job under the NAME column on the A/R line.  You should now have the credit to apply to the open invoices and that will remove them from your A/R aging reports.   

 

 

C
cfolandAuthor
October 5, 2023

The account assigned to the deposit was an A/R account. Quickbooks will not allow me to Debit and Credit 2 A/R accounts in the same JE. My issue is that a "deposit" was posted to the customer instead of a "payment" being applied to the invoices for the customers Job. Now I have a large amount of invoices that have been paid but still show as past due in QB. I can not delete the deposit and then receive the payment properly because the transaction took place in 2022. Tried creating a CM to "apply" to the invoice and that would not work.

Rainflurry
RainflurryAnswer
October 5, 2023

@cfoland 

 

Okay, got it.  You can move the A/R credit from the customer to the job by using two JEs and a Clearing Account.  To do that, set up a bank account in QB called 'Clearing Account'.  This serves as a temporary holding account since, as you mentioned, you cannot post to A/R on both lines of a JE.  Then, create two separate journal entries.  The first JE is a debit to the customer A/R account and a credit to the newly-created bank Clearing Account.  The second JE is a debit to the Clearing Account and a credit to the Job A/R account.  The Clearing Account balance should be $0 and you should now have the A/R credit available to apply to the open invoice.      

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