When I created the debtors and creditors accounts in Quickbooks, I entered the opening balance for each of them. I noticed however that instead of allocating the amounts to creditors and debtors accounts, it did record them automatically in either an expense or an income. How do I update this? Do I have to do a journal entry to correct it? It does not allow me to correct in each debtor or creditor the account. Thank you.
When entering an opening balance, an income and accounts receivable (A/R) account are impacted for debtors and expense and accounts payable (A/P) account for creditors. The accounts are selected as the default account when you created your account. They can be edited once the original transaction is created.
Here's how you can edit the income account assigned to debtors:
Accounts receivable appears in the debit column of a transaction journal. This represents that the debtor still owes you money and will stay in Accounts receivable until the invoice is paid.
To edit the expense account assigned to creditors:
Accounts Payable appears in the credit column of a transaction journal. This represents that business still has a credit memo or balance due to the creditor. Accounts Payable will be impacted by this opening balance until the bill is paid.
This will change the default accounts created, shop. Let me know if you have any other questions.
Hello there, Dolores Rowley.
Thank you for posting here in the Community. It would be my pleasure to provide clarification regarding the debtors and creditors opening balance in QuickBooks Online.
When entering customer or vendor opening balance, it'll impact other accounts. For customers, it'll affect Accounts Receivable and the income account.
For Suppliers, it'll be the Accounts Payable and the Expense account. When you create the QuickBooks subscription, the default account selected would be Expense and Income.
For more insights about the opening balance, you visit the article I recommend below:
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