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AJE to clear A/R for cash basis client not posting

Forum|Forum|5 years ago
September 24, 2020
2 replies
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I am attempting to zero out an erroneous A/R credit balance for a cash basis organization. I try to make an adjusting entry to debit A/R and credit sales, and it DOES post, but the entry and its effect on the balance sheet does not show up when I run any cash basis reports. What am I doing wrong? ?

QuickBooks Accountant Desktop

Best answer by IamjuViel

I appreciate the information you've shared, @sdonohoo.

Let's open the adjusting journal entry you've created and review its details. Make sure that the AJE reflects the accurate date and accounts for them to be included in your financial statement.

If the two accounts that you're using are set up like A/R or A/P type accounts and the transactions are not "paid" or matched off, then it won't show up on a cash/accrual basis profit and loss statement. Also, if an A/R or A/P account is in the first line of the journal entry, they will not post correctly to those sub-ledgers and therefore cause problems on a cash/accrual basis report.

Once completed, you can run the Adjusted Trial Balance report. It displays the unadjusted balances, adjustments, and adjusted balances as of the last calendar day for the specified date range. Any adjustments entered before the last calendar day are calculated as part of the unadjusted balance.

Here's how:

Go to the Report menu.
Choose the Report Center.
From the Search Box, enter the Adjusted Trial Balance report.
Click the Run icon.
Set the Date Range of the report and its Report Basis.

Also, I've added these articles to learn more ways on how you can get the most out of the available reports in QuickBooks:

Get back to us here if you have other questions about generating financial reports in QuickBooks. I'm always here to help.

R

Rea_M

You may have run the cash basis report that doesn't cover the posting date of the adjusting journal entry, @sdonohoo. That's why you're unable to see the entry and its effect on the balance sheet on any report you've pulled up.

The report date plays a great impact in your financial data. With this, you need to pull up a cash basis report that covers the adjusting journal entry's posting date. Let me guide you how.

Go to the Reports menu.
Select Company & Financial, then choose any report you want (i.e. Profit & Loss).
In the Dates field, choose Custom.
Manually input the From and To dates.
Click Refresh.

I've attached a screenshot below that shows the last three steps.

You can customize your reports to filter the data you need. From there, you can update the data, add or delete columns, remove information on the header/footer, and even personalize the font and style of the report. To learn more about this, kindly check out this article: Customize reports in QuickBooks Desktop. It also includes related articles about the basic report details in QuickBooks Desktop (QBDT).

Additionally, here's an article that'll guide you in resolving A/R issues on your cash basis reports: Resolve AR on the cash basis Balance Sheet with journal entries. It also contains information about removing Accounts Payable on the cash basis Balance Sheet.

Please let me know if you have other concerns. I'm just around to help. Take care always.

S

sdonohooAuthor

Thank you for your response. I am using the working trial balance for calendar year 2019 and made the AJE for 12/31/19. The AJE's impact on the AR balance is not showing up in either the working trial balance or a balance sheet report for 2019. I am basically following the exact process that this article recommends: https://quickbooks.intuit.com/learn-support/en-us/journal-entries/resolve-ar-or-ap-on-the-cash-basis-balance-sheet-with-journal/00/186079.

I tried the chat help function, but the guy I chatted with tried to tell me that no AR entries are going to show up on a cash basis report.

IamjuVielAnswer

I appreciate the information you've shared, @sdonohoo.

Let's open the adjusting journal entry you've created and review its details. Make sure that the AJE reflects the accurate date and accounts for them to be included in your financial statement.

If the two accounts that you're using are set up like A/R or A/P type accounts and the transactions are not "paid" or matched off, then it won't show up on a cash/accrual basis profit and loss statement. Also, if an A/R or A/P account is in the first line of the journal entry, they will not post correctly to those sub-ledgers and therefore cause problems on a cash/accrual basis report.

Once completed, you can run the Adjusted Trial Balance report. It displays the unadjusted balances, adjustments, and adjusted balances as of the last calendar day for the specified date range. Any adjustments entered before the last calendar day are calculated as part of the unadjusted balance.

Here's how:

Go to the Report menu.
Choose the Report Center.
From the Search Box, enter the Adjusted Trial Balance report.
Click the Run icon.
Set the Date Range of the report and its Report Basis.

Also, I've added these articles to learn more ways on how you can get the most out of the available reports in QuickBooks:

Get back to us here if you have other questions about generating financial reports in QuickBooks. I'm always here to help.

C

carswo

I am posting Journal Entries and QB will not allow me to post accounts receivables?

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