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ParaDara
October 8, 2021
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Dr and Cr Designations

  • October 8, 2021
  • 1 reply
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My requirement (as a qualified accountant) is very simple.  I just want each balance in QBO to be designated as Dr or Cr. The concept of showing negative liabilities as "-" or negative assets as "-" completely escapes me. 

I could understand perfectly if QBO simply showed me the balance as Dr/Cr.  Without this basic, old-fashioned facility I need to know whether the A/C in question is designated as an asset or a liability in order to to be able to interpret QBO reports.

Does anyone else have this difficulty and have Intuit ever been asked to provide this simplest of all options - especially in "Accountant Mode".

Best answer by Rea_M

Hi AileneA,

No problem with seeing the customised report format I saved.  However, it's pre-set for that one account I was working on.  Like normal reporting systems, I need to save the format and to use it to analyse any accounts that I'm working on.  Using QBO's logic, it would appear that I have to save a separate customised format for every single account on which I need to report?  A bit of a joke?

Please confirm!


Yes, you're correct about the QuickReport in QuickBooks Online (QBO), @ParaDara. Let me share further details about this.

 

When you've pulled up and customised a QuickReport (as directed by my colleague above), you'll have to save the format for every single account you need to report. However, you can also add the Debit and Credit columns on a report that'll show your accounts and their transactions for a certain period. To do this, I'd recommend running the Transaction Detail by Account report. Here's how:

 

  1. Go to the Reports menu.
  2. Type in Account in the Find report by name field, and choose Transaction Detail by Account.
  3. Select the Customise button.
  4. In the General section, set the Report period.
  5. Go to the Rows/Columns section, then choose the Change columns link to view more columns.
  6. Choose the Debit and Credit boxes.
  7. Click Run report.  

 

Then, it's a good idea to save the report's current customization settings. You can check out this article for the detailed steps: Memorise reports in QuickBooks Online.

 

Also, I'm adding these articles to show the complete list of available reports for your version of QBO and how accounts are affected by debits and credits:

 

 

Let me know in the comments if you have other reporting concerns and questions about managing transactions in QBO. I'm always around to help. Take care, and I wish you continued success, @ParaDara.

1 reply

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Archie_B
October 8, 2021

Hello there, ParaDara.

 

Let me share what I know about balances in QuickBooks Online.

 

When you're liability account shows negative amount, it means you have paid the said account, and negative balance on the asset account means you have decreased your asset.

In addition, QuickBooks also automatically records how each transactions affect your accounts so that you don't have to worry about entering any journal entries.

 

I also recommend consulting an accountant if you need further explanation regarding the account's debit and credit. You can also check this article to learn more about the difference between the Business and Accountant view in QuickBooks Online: Switch between Business and Accountant view in QuickBooks Online.

 

Let me know if you still have other concerns about it. I'll be here to answer them. Have a good one.

P
ParaDaraAuthor
October 9, 2021

Thanks, Archie - read my request - I am an accountant!  I simply want QBO to show me Dr/Cr designations instead of +/- designations.  What could be simpler?  I have switched between Business and Accountant view but that makes no difference.

For example, Revenue (the Irish tax collector) owe me grants / subsidies and I owe them our monthly payroll deductibles.  When I see a negative balance on “Revenue” I need to double-check to see whether they over-paid a subsidy or I made a posting error.  Likewise, on the liability side it could be that I over-paid them for what I owe or made a posting error.

 

I cannot understand your explanation: “When your liability account shows negative amount, it means you have paid the said account, and negative balance on the asset account means you have decreased your asset.”  When your liability account shows negative balance it means you have over-paid that liability.  When you pay a liability it goes to zero - not negative. Negative balance on an asset account probably means that you have erred and the asset has become a liability.  A decreased asset is not negative unless the posting exceeds the value of the asset before the posting!

Dr/Cr designations should be a switchable option within “Accountant View”.  Is there any way to do this in QBO?

Rubielyn_J
Rubielyn_J
October 9, 2021

Thanks for getting back to this thread, @ParaDara. Let me clarify things about designations for QuickBooks balances. 

 

Having the Dr or Cr designations for QuickBooks balances is currently unavailable in QuickBooks Online. Even if you're using the Accountant View, it will only show the negative balances. 

 

You can run a Quick report for the accounts that has a negative amount. Then put a checkmark on the Debit and Credit boxes to show it on the statement. This way, it will show the data that you want.

 

Here's how:

 

  1. Go to the Settings menu and select Chart of Accounts.
  2. Choose the account and click the dropdown arrow under the Action column.
  3. Select Run report. 

  4. Click the Gear icon.
  5. Put a checkmark next to Debit and Credit. 

 

Once done, click the amount to have a full view of the transaction.

 

I also agree that when your liability account shows negative, it means you made an overpayment. While if you pay a liability, it goes to a zero balance. 

 

Additionally, let me share these links to help you manage your accounts in QuickBooks Online:

 

 

Please don't hesitate to comment down below if you have further questions about designations in QuickBooks. I'll be happy to assist you again. Stay safe and have a good day.

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