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Rachel-Ohalek
April 21, 2025
Question

When I converted from Desktop to Online, all this money is showing up in my A/R?? We are cash basis, we have no AR. Where did this come from and how do I clear it up?

  • April 21, 2025
  • 1 reply
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It created a journal entry to Credit our old bank account that we dont have anymore and havent had for years and then debited AR? I tried to delete the JE's it created, but then it just removes it from AR and puts back to the old bank account and a new account shows up...Opening Balance equity?? What has happened and how do I correct this?

1 reply

R
RCV
April 21, 2025

We've got some troubleshooting steps we can perform to resolve the unexpected entries in Accounts Receivable (A/R) that should not exist in QuickBooks Online (QBO), Rachel-Ohalek.

 

When moving from QuickBooks Desktop to QBO, particularly while using a cash basis accounting approach, you might encounter unforeseen entries in Accounts Receivable (A/R) that shouldn't be imported into the program. To fix this, we can create a reversing journal entry for A/R. Here's the process to set up a journal entry for Accounts Receivable:"

 

  1. Click the + New Plus icon. 
  2. Under Other, select Journal Entry.
  3. Enter the Journal date. The Journal date is the date of the end of the period.
  4. On the first line, choose the account affected by the invoice from the dropdown list in the Account column.
  5. In the Debit column, enter the amount.
  6. Enter the reason for this journal entry in the Description field.
  7. In the second line, select Accounts Receivable (A/R) from the Accounts dropdown list. The amount is automatically entered in the Credits column. If splitting this over several customer accounts, change the amount to reflect a single customer's sales tax.
  8. Choose the customer from the dropdown list in the Name field.
  9. Press Save and close.

 

Once the accounts receivable journal entry is created, we can reverse it by following the steps below:

 

  1. Click the Search icon in the toolbar.
  2. Locate the journal entry you created and select it to open it.
  3. Tap Reverse.
  4. Change the Journal date to one day after the original journal entry's Journal date.
  5. Press Save and close.

 

We should also verify whether there are any unapplied payments. Unapplied bill payments not linked to bills, or received payment entries not associated with invoices, can adversely impact accounts receivable. You can resolve this issue by accessing the payments from the Customer or Vendor registers and appropriately applying them. For the steps and details, you can check out this article: Resolve accounts receivable or accounts payable balances on a cash basis balance sheet in QuickBooks Online. Then, go to the Unapplied payments section.

 

Moreover, you can refer to this article about how your features and data move from Desktop to QBO: Learn how features and data move from QuickBooks Desktop to QuickBooks Online.

 

The QuickBooks Community team is committed to supporting your business success. If you have further questions about managing your Account Receivable or any QuickBooks-related concerns, revisit this thread. We're always here to assist you in achieving your financial goals, Rachel-Ohalek.

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