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kbrookemt
March 12, 2025
Question

Fixing negative AR balances on Statement of Financial Position

  • March 12, 2025
  • 2 replies
  • 0 views

Hello!

I have run into an issue with several AR subaccounts showing negative balances on a Statement of Financial Position report for a nonprofit I work with. I think the issue is that the AR account on the pledge/invoice doesn't match the AR account on the associated payment, but I am unsure how to resolve this issue as I can't seem to find a way to change the account on either the invoice or the payment transaction level. Any direction you can give me for how to remedy this would be a huge help! 

 

Here is one example: For the invoice, the distribution account is 1200, but for the payment the account is 1240. I believe these need to be the same to show up on the Statement of Financial Position report correctly. What is the best way to change the payment account from 1240 to 1200? I've tried everything I can within the transaction but can't figure it out! 

Thanks for your help! 

 

 

 

2 replies

MorganB
MorganB
March 12, 2025

Hi there, kbrookemt.

 

Thanks for joining us here in the Community. I'm happy to point you in the right direction to get this account taken care of in QuickBooks Online.

 

In similar situations, other users have found the easiest thing to do is to delete the transactions and enter them with the proper account information. You may also consider a transfer to resolve the payment. For both instances I recommend consulting with your accountant to be sure of the best method. If you don't currently have an accountant you may be interested in a new service from QuickBooks called Expert Assisted. Here you'll be able to connect with live accounting agents to discuss more in-depth accounting questions. You can find out more info here: QuickBooks Live Expert Assisted

Please feel free to reach back out if you have any other questions. I'll be here to help in any way that I can.

Rainflurry
Rainflurry
March 12, 2025

@kbrookemt 

 

Do not delete the transaction!  Since the payment has been reconciled, it will throw off your reconciliation.  And, the period is closed. 

 

The best thing to do is to make a journal entry (JE) and move the payment from the 1240 sub-account to the default A/R account.  To do that, go to New > Journal entry.  Debit the 1240 A/R sub-account and credit the default A/R account for 29,164.80, both for the same customer.  Then, go to New > Receive payment.  You will need to clear both the original payment to the "invoice" created by the JE as well as the original invoice to the "payment" created by the JE.  Then, you should be all set.     

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