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knichols11
June 27, 2022
Solved

A/P Adjustments

  • June 27, 2022
  • 1 reply
  • 7 views

Hello! 

We made an adjustment to year-end for accounts payable for a client's books in QB desktop.  The vendor we used is a dummy vendor that we built to identify that the transaction was an adjustment made by us, if that makes sense.  We noticed, though, that the adjustment we made put the transaction into the Pay Bills screen, which we don't want.  Is there a better way to make adjustments to A/P or A/R where we don't want to hit a specific vendor (just clean up the account) and not have the A/P entry show up as a bill to be paid? 

Thank you! 

Best answer by JamaicaA

Welcome to the Community Space, @knichols11. I’m here to share some insights about handling A/P or A/R accounts in QuickBooks Desktop.

 

It’s great that you’re able to come up with the workaround using a dummy vendor to record the adjustments. I’d be glad to help walk you through on how to clear out you’re A/P and A/R accounts.

 

Paying off any outstanding debt is the simplest way to clear any payables. In addition to journal entries, this also includes setting up a clearing account. In your chart of accounts, the procedures are very similar to opening a bank account without an opening balance.

 

Here’s how:

 

  1. Go to the Lists menu, select Chart of Accounts.
  2. Click Account, then choose New.
  3. Choose Bank, then click Continue.
  4. Enter a desired name (example: clearing account).
  5. Click Save & Close.

 

Here’s an article you can visit to use a clearing account: Set up a clearing account. This contains the detailed steps that will guide you through the process.

 

Please know it’d be best to speak with your accountant to ensure the best course of action for you and your company. This way, we can ensure the correct accounts are affected.

 

Let me know if there’s anything else you need help in managing your A/P and A/R accounts in QuickBooks. I’d be more than happy to assist you. 

1 reply

J
JamaicaAQuickBooks TeamAnswer
QuickBooks Team
June 27, 2022

Welcome to the Community Space, @knichols11. I’m here to share some insights about handling A/P or A/R accounts in QuickBooks Desktop.

 

It’s great that you’re able to come up with the workaround using a dummy vendor to record the adjustments. I’d be glad to help walk you through on how to clear out you’re A/P and A/R accounts.

 

Paying off any outstanding debt is the simplest way to clear any payables. In addition to journal entries, this also includes setting up a clearing account. In your chart of accounts, the procedures are very similar to opening a bank account without an opening balance.

 

Here’s how:

 

  1. Go to the Lists menu, select Chart of Accounts.
  2. Click Account, then choose New.
  3. Choose Bank, then click Continue.
  4. Enter a desired name (example: clearing account).
  5. Click Save & Close.

 

Here’s an article you can visit to use a clearing account: Set up a clearing account. This contains the detailed steps that will guide you through the process.

 

Please know it’d be best to speak with your accountant to ensure the best course of action for you and your company. This way, we can ensure the correct accounts are affected.

 

Let me know if there’s anything else you need help in managing your A/P and A/R accounts in QuickBooks. I’d be more than happy to assist you. 

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