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Frequent Explorer **

Negative balance in a vendors account.

Our previous bookkeeper made payments to a vendor but did not match the invoices paid to the checks. The vendors balance is showing a negative amount. I checked the audit trails for the transactions, and corrected the transactions to reflect the invoices paid. I cannot find where the negative balance comes from, we owe nothing to this vendor. Any suggestions on getting the account to zero?

5 Comments
QuickBooks Team

Re: Negative balance in a vendors account.

Hi there, @Angie13,

 

A negative balance on your vendors account can happen when payable checks were written, but there are no bills created or the original bills got deleted. It's also possible the bill was overpaid. payablecheck.PNG

 

Let's pull up the Accounts Payable Aging Detail report and scan through the report to see negative amounts.

 

Here's how:

  1. Go to the Reports menu.
  2. Select Vendors & Payables, then A/P Aging Detail report.
  3. Locate the negative amount under in line with the vendor. negativebalance1.PNG
  4. Open the check to see if there are bills paid in this transaction.
  5. If no bills located here, then you can create a bill against the check. negativebalance2.PNG
  6. Make sure to enter the same amount, then pay the bill.

Once done, go back to the Vendor list, the balance will is now zero.

 

On the other hand, if the bill was overpaid, you have the option to apply the credit to the next transaction.

 

Should you need some clarifications, please let me know and I'll get back to you.

Frequent Explorer **

Re: Negative balance in a vendors account.

Same issue but different question. Our company has had several different bookkeepers all using credits from the vendor differently. I have used current credits that I have received since I started doing the books, but there are credit balances hanging out there from 2018 and I cannot find a paper trail or account that these credits are hitting.  I have tried to review the audit trails but I do not see anything. Is there report that I can generate for just credits received from the vendor?

QuickBooks Team

Re: Negative balance in a vendors account.

Hello Angie13,

 

Thank you for posting here in the Community. I'm here to assist you with any questions you may have regarding the vendor report in QuickBooks Desktop.

 

You can try to create a custom report to obtain the available credits within the QuickBooks program.

 

Here are the steps:

 

  1. Click the Reports tab at the top menu bar.
  2. Select Custom Reports.
  3. Click Transaction Detail.
  4. Go to the Display tab, and choose a date range.
  5. Below Report Basis, choose Accrual or Cash.
  6. Below Columns, add TypeDateNum and Open Balance.
  7. Go to the Filters tab, and choose Transaction Type below FILTER.
  8. Click the drop-down arrow below Transaction Type, and click Multiple Transaction Types.
  9. Add Bill Payment, Bill Credit, Journal, and click OK twice (this will ensure credits will appear regardless of how they were entered into QuickBooks).
  10. Next to Total By, select Vendor.

See this screenshot for your visual reference:

 

 

The Check Detail report will also show multiple bill credits on your vendors. For the detailed steps, I'm adding the article I recommend on this (scroll down to A report that shows how Bill Credits are applied):

 

Customize vendor reports.

 

Please don't hesitate to come here with all of your needs concerning the vendor report for the credits. The Community is here to ensure your success.

Frequent Explorer **

Re: Negative balance in a vendors account.

Thank you, this helps finding the credits.  Not sure why but there are credits entered as $0 though.

QuickBooks Team

Re: Negative balance in a vendors account.

Hello Angie13,

 

I'm glad to know the information above helps you with the credit. Allow me to help provide additional information regarding running the report in QuickBooks Desktop.

 

Available credits should show the amounts on the Open Balance column in the reports. If you're unsure of the results, you can always double-click a transaction in question to view the bills paid and payment amount.

 

If the information showing is still not correct, you can also try running the Verify and Rebuild Data utility. By running this process, it'll self-identify any data issues and resolve them on your behalf.

 

For the detailed steps, I'm adding the article I recommend on this:

 

Verify and Rebuild Data in QuickBooks Desktop.

 

I look forward to serving you to the best of my ability, so please let me know for any further assistance you need. The Community has your back.