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Judy222
May 20, 2021
Question

Clearing offsetting journal entries from the customers open invoices report on Quickbooks Desktop

  • May 20, 2021
  • 4 replies
  • 84 views

We are using Quickbooks Desktop Enterprise Solutions: Contractor 21.0.  Offsetting General Journal Entries have been recorded to a customer account "Adjustment".  These offsetting entries continue to appear on the customer Open Invoice report.  How do we clear these offsetting entries?  I've attached a PDF of the Open Invoice Report.

4 replies

Rustler
Rustler
Level 15
May 20, 2021

This is one of many reasons to not use journal entries.  Sorry to say there is nothing you can do, other than delete them and use credit memo's. received payments, etc, what ever is appropriate

RCVQuickBooks Team
QuickBooks Team
May 20, 2021

Let me help you clear the offsetting journal entries in QuickBooks Desktop, Judy222. 

 

We can apply those entries to outstanding invoices to let the balance on the customer will be reduced. Let me show you how:

  1. Open an invoice from the customer transaction list.
  2. Click Receive Payments.
  3. Tap Apply Credits.
  4. Journal entries and credit memos will appear in the Discount and Credits window.
  5. Mark the credit you want to apply, then click Done.
  6. On the Receive Payments window, click Save & Close.
  7. Press Save & Close again to exit the Create Invoices window.

 

Another option is to set up a clearing account. This account is used to move money from one account to another account when you cannot move the money directly. Just follow the steps and details in the Set up a clearing account article. Then, please consult your accountant for more details on how to handle journal entries' posting transactions. This is also to ensure your records on the account are accurate.

 

Feel free to visit our Banking page for more insights about managing your bank feeds and reconciling accounts.

 

Please update us after performing the solutions, as I want to ensure this is resolved for you. Just reply to this post and I'll get back to you. You have a good one. 

Judy222Author
May 20, 2021

This is not a real customer.  There aren't any invoices.  All of our customers make a 30% deposit upon a contract agreement.  Therefore, our complete AR Open Invoice Report has numerous customers with a credit balance.  To generate financial statements, a Journal Entry is created to reclass the total of the credit balances to a liability account and then reversed later.  In order to create a Journal Entry effecting the AR account, Quickbooks requires a "customer" to be associated with the Journal Entry.  Hence, customer "Adjustment" was created.

Adrian_A
Adrian_A
Level 8
May 20, 2021

Hi Judy222,

 

As Rustler shared above, we'll have to delete the advance transactions of the customers. Afterward, create a credit memo and then use the Receive Payments option to record the items.

 

Also, I would still recommend reaching out to your accountant so you'll be guided on the best way to record this one.

 

Feel free to visit our Banking page for more insights about managing your bank feeds and reconciling accounts.

 

I'll be around if there's anything that I can help. Keep safe!

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