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C Farally
July 15, 2022
Question

EFT - Split Between 2 Customer Accounts

  • July 15, 2022
  • 1 reply
  • 0 views

Hi All,

  We received an EFT from customer that should have been split between two different customer accounts.  It was all applied to one customer.  One customer is showing a significant credit, and the other is showing the opposite.  What would be the best way to correct this?  Can I go into the customer payment where the payment was applied, and change the payment amount to the amount it should have been.  If so, how would I apply the amount that was backed out, so I could credit to the other customer that was included in the payment?  Would this reverse back into undeposited funds, and allow me to apply from there?  Thanks! 

1 reply

Tori B
Tori B
July 15, 2022

Hi there, @C Farally. 

 

Thanks for swinging by the QuickBooks Community. 

 

You can edit the payment amount as you mentioned, or you can create a journal entry to transfer the amount from the customer with the right amount to the customer that needs the payment recorded. I've included some steps to record a journal entry below. 

 

  1. Go to the Company menu and click on Make General Journal Entries.
  2. Fill out the fields to create your journal entry. Make sure your debits equal your credits when you’re done.
  3. Select Save or Save & Close.

 

For additional information about this process, check out Create journal entries in QuickBooks Desktop. 

 

Please know that it's always best to consult with your accounting professional before making any changes to your company file. If you don't have an accountant, don't sweat it. You can find one here in our Resoucre Center. 

 

I'm only a reply away if you have any additional questions. Have a great weekend! 

C
C FarallyAuthor
July 19, 2022

Thanks so much for the quick reply.  I tried to create a JE debit and crediting Accts Rec for 2 different customers.  It would not let me use A/R for both sides of the JE, even though I chose 2 different customers.  How would I go about getting around this?  Thanks!

M
Maybelle_S
July 19, 2022

Hello there, @C Farally.

 

QuickBooks will not let you record transactions that contain:

  • Two A/R accounts
  • Two A/P accounts
  • One A/R account and one A/P account

Saving these transactions will result in the message: Warning: You cannot use more than one A/R or A/P account in the same transaction.

 

To resolve this, we can manage bad debt. When you are recording bad debt in the accrual method, you'll have an Allowance for Bad Debts account.

 

To avoid the error, we can set up the Allowance for Bad Debts account as an Other Current Asset. If you want to set it up with the normal Accounts Receivable type, you need to set up a clearing account as a go-between for the two A/R accounts when recording journal entries.

 

You can also write off a receivable against a payable if you have a customer who is also a vendor, you may need to write off a receivable against a payable. You cannot do this in a single transaction since that transaction would have an A/R account and an A/P account. You need to use a clearing account and make two transactions.

 

Also, I'm adding this article: Resolve AR and AP balances on the cash basis Balance Sheet. This will provide you with in-depth details on how to resolve account issues as well as tips to prevent them.

 

I'm still here to help if there's anything else that you need. Just leave a reply below and I'll get back to you. Keep safe and take care!

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