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AmieM
August 18, 2023
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Clearing old unpaid bills from Accounts Payable

  • August 18, 2023
  • 3 replies
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I'm using QBO, and I am cleaning up an account with 26 unpaid bills from 2010 & 2011. They are mostly rent payments, so I'm sure they were paid. What is the best way to clean these out of accounts payable without affecting the closed years?

 

Thanks!

Best answer by Rainflurry

@AmieM 

 

If you're a cash basis taxpayer, they can be deleted since cash basis taxpayers do not have A/P.  If you're an accrual basis taxpayer, you will need to reverse them in 2023 because those bills were deducted as expenses back in 2010 and 2011.  To do that, issue credit memos and assign the same expense account to the credit memo that was assigned to the original bills.  Then, apply the credit memos to the unpaid bills.  

3 replies

R
ReymondO
August 18, 2023

Hello there, @AmieM.

 

I'm here to provide you with information on how to clear old bills in QuickBooks effectively.

 

The option to clear old bills that occurred on or before your company's closing date without affecting your closed books is unavailable in QuickBooks. I'd suggest getting in touch with your accountant to help you with this process. Their expertise can ensure the accuracy of your records.

 

To reduce your Accounts Receivable (A/R) balance and clear out old bills, you can take advantage of the Pay Bills feature. Here's how:

 

  1. Click +New and select Pay bills.
  2. Choose the Payment account, then enter the Payment date.
  3. Select the bills and click Save and close.

 

Remember, you can always refer to our Expenses and Vendors page for additional resources and links on effectively managing your vendor transactions.

 

If you have any further questions or concerns, please don't hesitate to reach out. I'm here to assist you. Have a wonderful day!

M
Migi12
June 19, 2024

Hi

 

I realized a relied to original  post vs an QB employee so reposting my question to reply from QB employee

I have a similar situation.  I have numerous  outstanding unpaid bills  over several years reflected on my Unpaid Bills report but the bills have been paid.  They were paid  outside the QB Pay Bills module.  The books are close for our last fiscal year.  How can I clear these out?   Use credit memos to the vendor?   Is there an off setting transaction ( journal entry) that I need to make?   Please help with specific steps as I am beginner QB uses for a small non profit that runs a hospital gift shop.  Appreciate all the help!  

K
KayePe
June 19, 2024

We appreciate you for joining us here in the thread, @Migi12. In QuickBooks Online (QBO), you can create a vendor credit to resolve any outstanding bills without having a Journal Entry. Let me elaborate on this further.


You can address unpaid bills by creating a vendor credit with the appropriate details for your bill transactions. Once done, you can apply the credit and the bill transaction when you make an expense to mark the unpaid bills as paid. Here's a step-by-step guide:
 

  1. From the left panel, click +New and Expense.
  2. From the Payee, choose the vendor.
  3. In the right panel, you'll see transactions intended for that vendor. Select the appropriate ones and click Add to apply them to the expense.
  4. If done, click Save and Close.

 

 

Furthermore, as you mentioned that the unpaid transactions are from the last fiscal year and your books are closed, I recommend consulting your accountant for assistance. They can help you determine if you still have to enter an offsetting journal entry.

 

If you don't have an accountant, I can assist you in finding one. You can visit this page to find a QuickBooks ProAdvisor for your business: Find a QuickBooks ProAdvisor.


Additionally, see this included reference guide for better management of your bills using QuickBooks: Enter and manage bills and bill payments in QuickBooks Online.


If you need further assistance with handling bills or any QuickBooks-related queries, feel free to ask your question here by clicking the Reply button or starting a new thread. Take care.

Rainflurry
RainflurryAnswer
August 19, 2023

@AmieM 

 

If you're a cash basis taxpayer, they can be deleted since cash basis taxpayers do not have A/P.  If you're an accrual basis taxpayer, you will need to reverse them in 2023 because those bills were deducted as expenses back in 2010 and 2011.  To do that, issue credit memos and assign the same expense account to the credit memo that was assigned to the original bills.  Then, apply the credit memos to the unpaid bills.  

    M
    Migi12
    June 19, 2024

    Hi

     

    I have a similar situation.  I have numerous  outstanding unpaid bills  over several years reflected on my Unpaid Bills report but the bills have been paid.  They were paid  outside the QB Pay Bills module.  The books are close for our last fiscal year.  How can I clear these out?   Use credit memos to the vendor?   Is there an off setting transaction ( journal entry) that I need to make?   Please help with specific steps as I am beginner QB uses for a small non profit that runs a hospital gift shop.  Appreciate all the help!  

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