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Jcross79
February 27, 2025
Question

How to remove a balance on my receivables that is not linked to an invoice

  • February 27, 2025
  • 2 replies
  • 0 views

My CPA had us do a JE to correct some balances. However they added a credit that is not applied to anything and told us just to mark it as QB's customer. Now it just hangs on our AR summary. Is there any way to remove this or is there a correct way to enter the JE?

2 replies

R
RheaMaeH
February 28, 2025

Thank you for reaching out regarding the issue with your Accounts Receivable balance in QuickBooks Desktop. I understand you have a credit balance resulting from a Journal Entry (JE) made by your CPA, which is not linked to any specific invoice and is showing up in your AR summary. Let me guide you through some options to resolve this issue and ensure that your AR accurately reflects your business transactions.

 

To begin with, let's reach out to your accountant to review the original journal entry that created the credit balance. Understanding the rationale behind this entry is essential for determining the best course of action. You may also want to seek guidance from another accounting professional. This way, you'll know if they need to correct or delete the journal entries that caused the balance.

 

Consulting your account when making significant changes to ensure compliance with accounting standards and tax regulations. Any necessary adjustments must be reflected accurately in your books.

 

Additionally, if you need help generating reports, such as Accounts Receivable reports or sales transactions, I recommend checking out this article: Reports topic. This provides creating specific and detailed reports in QBDT.

 

Maintaining clear communication with your accounting professionals through this process is crucial for the best outcome. If you have additional questions, please don't hesitate to reply below. We're here to ensure your QuickBooks Desktop operates smoothly and accurately reflects your business transactions.

Rainflurry
Rainflurry
February 28, 2025

@RheaMaeH 

 

"To begin with, let’s reverse the journal entry to correct any errors in your financial records. By reversing the original entry that created the unapplied credit, we can ensure that your AR summary accurately reflects your current financial situation."

 

"To begin with, let’s reverse the journal entry to correct any errors in your financial records. By reversing the original entry that created the unapplied credit, we can ensure that your AR summary accurately reflects your current financial situation."

 

There are no errors.  Advising your customer to reverse the entry made by their CPA to "correct any errors" is unwise.  This is a limitation of QB.  As a QB employee, how can you not know that?  If you don't know the answer to a customer's question, it's ok to pass on posting a reply isn't it?  Your post creates doubt and more work for your customer and is just plain wrong.     

    Rainflurry
    Rainflurry
    February 28, 2025

    @Jcross79 

     

    A/R entries are at the customer level in QB.  If you don't have specific invoices to apply the credits to, then yes, you need to use a generic customer, and the entry will stay on your A/R reports forever.  I suppose you could create an other current asset account (OCA) and reclassify the entry there (debit A/R for QB's customer, credit new OCA account) if you want to remove it from your A/R reports.   

     

     

     

     

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