Question

Errors on Balance Sheet Due to Credit Memos

Forum|Forum|6 years ago
March 3, 2020
5 replies
0 views

Has anyone else noticed that since 7 days ago, there is a MAJOR glitch in the reporting software of QBO? If you happen to use Credit Memos and be CASH BASIS, the detailed reports randomly "drop" applied credit memo amounts providing ERRONEOUS reporting totals. I have spent over 9 hours with QBO, and so far all they come up with is that the calculations are correct.

If the calculations are correct, then why when I expand a summary number of lets say $200,000, that the corresponding detail report show a total of $800,000???

BEWARE of your financial statements.

C

CG_TTC22

I am experiencing the same issue. My balance sheet account on a cash basis for last year is about $17k overstated but when I drill down into the account, cash basis for the same time period, it is the balance it should be. Accrual detail matches the accrual balance, but that doesn't help me when I need the cash basis version of these reports. I am unable to tie the balance sheet report total to any detail.

My difference from your original post is that I don't have any credit memos but I do have journal entries that are adjusting the balance.

Angelyn_T

Thank you for reaching out to us here on the Community page, @jkannesser and @CG_TTC22.

For now, you can try changing the reporting method to Accrual and then back to Cash. If you're getting the same result, I encourage reaching out to our Support Team to check your Accounts Receivable and Accounts Payable reporting. They can also check this further securely and review what's causing this unexpected behavior.

To contact support, tap on Contact us from the Help menu.

I'm also adding this article for your reference about running a balance sheet in QuickBooks Online: FAQ: Basic troubleshooting for balance sheets.

Get back to me if you have any other questions. I'm a few clicks away to help.

J

jkannesserAuthor

I am still on the phone with the Supervisor - they are dealing with the technical department as it appears to be a glitch in the coding. If a credit memo is applied to more than 1 outstanding invoice. Mind you, there were no problems as of 2/24/20. This technical problem appeared after that date. When I run the same report I get two different balances.

Z

zliB2b

Has this been resolved? I'm reviewing the books from 2019 which is closed and noticed there are entries with the same issues. The credit memo entries on the cash side are randomly missing the debit side. The only advice I've received was to delete and re-enter.

Candice C

Good Afternoon, @zliB2b.

Yes, deleting and re-entering the credit memos is the best way to fix this problem. I recommend consulting with your accountant to be sure that this will be best for your business. If you don't have an accountant, check out this link to find one near you.

Here's how you can edit your closed books:

Log into your QuickBooks account as the Master Admin.
Go to the Gear icon.
Under the "Your Company," pick Account and Settings.
Select the Advanced tab.
In the "Accounting" section, click the Edit (Pencil) icon.
Change the closing date.
Press Save and Done.

It's that easy. From there, you can delete and re-enter the credit memos. Here are a few articles that can help:

If you have any other questions, let me know. I want to make sure that you're able to get this resolved as soon as possible. Have a great day!

C

Conway1021

Well it is May of 2021 and the issue continues to be a problem

L

lleissner

good morning, can you help me?

MaryLandT

I'm happy to help you with any QuickBooks issues you may be having, lleissner.

You can click the Reply button below and enter a brief discussion of your question. I'm always around to help.

Just tag my name, and I'll get back to you. While waiting for your response, feel free to visit this link: QuickBooks video tutorials.

Thank you and stay safe!

C

CeSaw

Have you been able to resolve?

I recently came across this same issue.

I researched to see when the issue started and pinpointed the first transaction that caused the issue by pulling a report monthly, then daily once I saw the first month that had the issue.

In the first report that showed the day with the unbalance, I drilled down into the transactions to see how credits were applied and found that some journal entry transactions applied to the credit memo, while others did not.

The next step I took was to look at the individual transactions related to the credit memo, which of course was the credit memo itself and in my case, Journal Entries that were applied to the credit memo.

I noticed that the journal entries that did not contain the Accounts Receivable at the first line in the JE would not get recognized in the credit memo, the JE that had AR in the first line did get applied correctly.

The step I took to see if the issue lies in how the JE is entered, I moved AR to line 1 as a Debit and the Sales (in this case) in line 2 as a credit. Doing this will remove any related transactions, so you have to go to Fix Unapplied Invoices to reapply the journal amount to the invoices and credit memos. After fixing the unapplied invoice, I checked the Cash basis report for that day and the balance sheet in cash basis balanced.

CONCLUSION: It seems that the manner in which you enter JE into QB affects whether or not it can properly process the credit memo when you apply JE transaction to the credit memo.

Let me know if this turns out to be the same situation for you and if taking these steps resolves your report issue in Cash Basis.

R

RyanW2000

CeSaw - I cannot express sufficiently how helpful it was that you were able to divine such a solution to this error. In my case, the glitch has been frustrating one of my client's books since mid 2020. Clearly the order of entry for the Accounts was the culprit here, just as in your case. I hope you have a wonderful holiday season, and please know that you have saved me countless more hours trying to correct what had become a multiyear discrepancy issue.

All the best,

Ryan W

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