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rkirsch28
March 16, 2021
Question

AR and Balance Sheet not in balance

  • March 16, 2021
  • 3 replies
  • 51 views

My AR Aging report as of 12/31 correctly shows a 0 balance however my balance sheet report shows -3,774.10 in my foreign currency AR account.  When I make a JE to clear the balance sheet it ends up creating a balance on my AR report.  How do I clear the negative accounts receivable amount from the balance sheet?

3 replies

Mark_RModerator
Moderator
March 16, 2021

Let's get this sorted out, @rkirsch28.

 

One of the possible reasons why your accounts receivable account showing a negative amount on the balance sheet report is because of the transactions with no Customer:Job name. To get this fixed, let's find the transaction that doesn't have a Customer/Job name. Please be guided by the process below.

 

Firstly, let's locate the year when the difference started. Here's how:

 

  1. Run the Balance Sheet Standard report on Accrual Basis.
  2. Customize the report to total by year.
  3. Open the A/R Aging Summary report and change its date to the first year ending date of the Balance Sheet by Year report.
  4. Compare the total from the A/R Aging Summary report to the Balance Sheet to determine if the discrepancy started that year. If it matches the total, move the date forward one year on the A/R Aging report until you get to a year that doesn't match the A/R Balance Sheet total for that year.

 

Once done, you'll need to find the transactions in Accounts Receivable that cause the discrepancy.

 

  1. In your Balance Sheet by Year report for the year, double click the Accounts Receivable total.
  2. In the Transactions by Account report, change the Total by to Customer.
  3. Scroll to the bottom of the report and look for a total under No Name. If you see any transactions under the No Name section, you need to determine which Customer/Job these should be assigned to and edit the transactions accordingly.
  4. Refresh your A/R Aging Summary report and Balance Sheet by Year report and compare the totals. 

 

If you still see a discrepancy in the report, you can read this article to proceed with the next solution: AR balance on the Chart of Accounts does not match the AR balance on reports.

 

I'm also adding this article to learn how to fix your balance sheet when it’s out of balance in QuickBooks Desktop: Fix a Balance Sheet that's out of balance.

 

Keep in touch if you need any more assistance with this, or there's something else I can do for you. I've got your back. Have a good day.

rkirsch28Author
March 16, 2021

I was able to find the transactions that are causing the discrepancy but most relate back to prior years.  How to I fix without changing the prior year financials?  The differences look to relate to changes to the exchange rate between invoicing and payment dates.

 

I tried to fix with a JE but that ended up putting a balance on my AR schedule which is not correct. 

Rubielyn_J
Rubielyn_J
Level 8
March 16, 2021

I have some info on how you can fix transactions in the prior year, @rkirsch28.

 

We can create a journal entry to fix transactions in the previous years. If entering a journal puts a balance in your AR schedule, I suggest consulting an accountant. This way, they can check what is the right thing to do with the balances.

 

Additionally, learn how to reverse or delete journal entries in QuickBooks Desktop.

 

In case you'll need help with your accountant, you can import journal entries to them.

 

Let me know in the comment section if you have a follow-up question with a journal entry. I'll get back to your right away. Have a pleasant day ahead.

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