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faratun
February 24, 2020
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Realized that ALL invoices to customers hitting the loan to director accounts (default), instead of Trade Receivables. How to change this setting?

  • February 24, 2020
  • 2 replies
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Original commenter did not share additional details
Best answer by Jen_D

Great to have you back, @faratun,

 

I can share further insights about the Accounts Receivables posting of your invoices.

 

AlexV is right. QuickBooks is using one default Accounts Receivables (A/R) account for customer invoices. It looks like the GL Code 1215 (Due From Director) is set as the default A/R register for transactions after the conversion.

 

While we can't set 2 receivables in the program, we can merge the two accounts and rename it as GL Code1200 (Accounts Receivable /TradeDebtr). Don't worry, none of your transactions will be deleted when doing this process.

 

Follow this step-by-step process:

 

  1. Go to the Accounting section and select Chart of Accounts.
  2. From the list, locate the director's loan account (GL Code 1215).
  3. In the View Register drop-down, select Edit.
  4. Use the same name for the GL Code 1200 - Accounts Receivable /TradeDebtr in the name field and number on the Description. To merge accounts, one must use the same name for both registers.
  5. Click on Save and close.
  6. You will see the merge option, click Yes on the prompt.
  7. The transactions posted on the GL Code 1215 will be combined to the winning account.

Now that you have only one A/R account, all the transactions will post there moving forward. While the balance of the second account is merged together with the default register, create a new account for GL Code 1215. Once done, transfer the funds using journal entries. Here's how:

 

  1. Click the (+) New icon and select Journal Entry below the Other section.
  2. Credit the account you want to remove the balance. 
  3. Debit the A/R you want to transfer the balance to. 

 

Here's a sample screenshot:

 

If you have any questions, let me know in the comment. I'll be right here to provide further assistance and insights. Have a nice day!

2 replies

AlexV
AlexV
February 24, 2020

Let me clarify something about accounts receivable, faratun.

 

QuickBooks Online has a default Accounts Receivable account (A/R). All invoices will be posted into that account regardless if you created a different A/R. If you'd like to transfer the balance to a different account (Trade Receivables), you can create a journal entry.

 

The most possible reason why the invoices are posting in your "director accounts" is that you've selected it as your income account when setting up the item. We can change it by editing the product/item.

  1. Go to the Sales tab and select Products and Services.
  2. Locate the product/item and click Edit.
  3. Change it from the Income account drop-down. Select Save and close.

If the products/items are either Service or Non-inventory type, you'll see the Also update this account in historical transactions option when updating the Income account. By checking this option, the changes will affect the old transactions, including invoices.

 

I'll be glad to help if you have more questions. Please comment again if you need more help.

F
faratunAuthor
February 24, 2020

Hi Alex,

Thank you for guiding us and clarify the function of Account Receivable.

 

For your information, previously, we used QuickBooks Pro and such problem never occurred, e.i when we issue invoice to our customers, it is automatically Debiting the Trade Receivables (GL Code:1200)

Apparently, we are using QuickBooks online for 2 days and we have recently issued 2 invoices to our existing customers using the same method of posting but they were  automatically hit to this (GL Code:1215). 

 

Herewith, I attach the chart of accounts maintenance for your good reference.

Appreciate if you could assist us to solve this technical problem.

M
MALMAL
November 18, 2024

We have several different receivables accounts, and would like to be able to choose, by invoice, which account each transaction is recorded to.  We're able to choose different income accounts (one side of the transaction), so why not different receivables accounts?  This would be especially useful when creating recurring transactions.  

J
jeanbiverly_
November 18, 2024

Hello, @MALMAL. Thanks for sharing your thoughts about the flexibility of receivables accounts in QuickBooks Online (QBO). It’s great to see your proactive approach in adjusting the invoicing process to fit your business needs.

 

I recognize the importance of being able to select different receivables accounts for each invoice, especially when managing various customer segments or products. This flexibility could streamline your accounting process, particularly for recurring transactions that require specific accounts.

 

While QBO currently doesn't provide the option to choose different receivables accounts for each invoice, I recommend submitting feedback to help enhance your experience. This will go directly to our product development team for careful review and potential consideration.

 

Here's how to send it:

 

  1. Navigate to the Gear icon and choose Feedback.
  2. Enter your comments or suggestions.
  3. Click Next to submit.

 

 

In the meantime, you can group receivables by using parent and sub-customers. Additionally, you can utilize class and location tracking to organize transactions, which can help categorize receivables for reporting purposes.

 

Additionally, to use different A/R accounts in your transactions, you'll need to process the amounts through journal entries. In this method, I recommend consulting your accountant for guidance. If you don't have one, you can find an expert here.

 

Moreover, here are some articles that can help you manage your invoices better:

 

 

If you'd like to discuss the workarounds for categorizing your invoices further, I'd be glad to assist you. Your insights are valuable to us, and I appreciate your dedication to finding the best solutions for your accounting processes. Take care, MALMAL.

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