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Hi Team,
How do i offset AR and AP for a zero balance .
Thanks.
You've got me here and I'll share a workaround to help you offset the transactions, sc38.
Before doing so, please make sure to consult your accounting professional for advice. To begin, let's create a wash or clearing account. This is a temporary account to move money when the transfer cannot be done directly from one account to another.
Here's how:
Next, create a journal entry to transfer A/R to the Wash account:
Next, record a journal entry to transfer the amount from Wash account to A/P or Trade and other payables account:
Once done, follow these steps to the apply the journal entry:
Finally, close out the receivable transaction:
To learn more about journal entry, you can read this article: Create a journal entry in QuickBooks Online.
Please reach out to me if you need further assistance. I'm just a post away to help you out some more. Have a great day!
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