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waayhome
July 7, 2022
Question

I need to clear old A/P but need to maintain the inventory. How do I do this?

  • July 7, 2022
  • 1 reply
  • 0 views

I have an inherited set of books for a startup company.  Much of the inventory items were paid by credit card without a corresponding bill that was paid. Now I have a fat balance on my A/P for all of the inventory ITEM RECEIPTS.  How do I go about clearing the A/P balance without deleting the ITEM RECEIPTS?

1 reply

G
Giovann_G
July 7, 2022

 I know how to get rid of your Accounts Payable (A/P) balance. waayhome.

 

You can create a journal entry (JE) to write off the balance of your AP account without deleting the item receipts. I'll show you how.

 

  1. Go to the Company menu, then select Make General Journal Entries.
  2. In the Make General Journal Entries window, change the date and fill in the entry number if necessary.
  3. In the Account field, choose Accounts Payable from the dropdown.
  4. Enter the amount under the Debit column, then select the vendor name in the Name column.
  5. In the next line, select the offset account and enter the amount under the Credit column.
  6. Hit Save & Close.

 

Once done, you can apply the journal entry to the existing vendor credit.

 

Here's how:

 

  1. From the Vendor menu, select Pay bills.
  2. Select the bill and choose Set credits.
  3. Under the Credits tab, choose the available credit and then click Done.
  4. Hit Save & close.

 

For more information, see this article: Write off customer and vendor balances.

 

For future reference, I've included this resource if you need to remove a bill payment check for a bill that has been recorded as paid: Void or delete a bill or bill payment check.

 

If you need further assistance clearing the AP account, please let me know. I'll be here to help you.

W
waayhomeAuthor
July 11, 2022

Giovanni,

My biggest hurdle is that the Item Receipts are hitting the AP.

WIthout a bill this doesn't seem logical. As previously mentioned, these are old 

as in 2020 or 2021 old, they were prepaid on a credit card or via Int'l Wire without any 

additional documentation. So, I have nothing to post against but the inventory must be received.

If you have a better way of doing this I am open to suggestion.

A
AileneA
July 11, 2022

Hello, waayhome. 

 

The best way to handle those old transactions without deleting the item receipt is by creating Journal Entry, as suggested by my colleagues since they are past transactions.    

 

I would suggest reaching out to an accountant. This way, they can help you with other options and make sure your records are accurate.  

 

Also, remember to always back up your company file before doing anything, especially with old transactions.

 

If you need related articles for future use, please feel free to visit our site: Help articles for QuickBooks Desktop. 

 

Please don't hesitate to reach out to us again if you have other questions in mind. We're always here to help you out again. Stay safe!

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