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Level 4

correcting A/P entries and check payments - prior year

I have a client who in 2019 enter payments for his checking account as a bill and then paid the bill.  I have corrected this issue and am starting to update the cc entries to get all of the expenses but I am having some issues with a few of the payments that were made.

 

It seems that several of the payments [all which have been reconciled in the bank account] show as coming from A/P but have no information below the check image [Bills paid in this transaction].  This area is blank.  I have not be able to figure out how to change the information so it wil show the payment to the credit card company, and appear in the CC account.  There is a separate account for the CC and the CC issuer is a vendor.  

 

Can someone point me in the right direction.

 

Thanks

 

EJ

Solved
Best answer August 22, 2020

Best Answers
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QuickBooks Team

correcting A/P entries and check payments - prior year

Thank you for the screenshot, EJ. I'll continue to help you.

 

This scenario happens when one pays a bill via check, and then delete or void it later on. This turns the check into vendor credits since it'll be unapplied from the bill. That's why in this case, you see that the check hits the A/P account.

 

You can experiment this by creating a dummy bill and pay it with a check, and then void it.

 

You're right. Since the check is a payment to the credit card company, you can recreate the bill. But when you do it, please be sure to select the credit card account in the Expenses section, as shown in the first screenshot. This will reduce the balance of the credit card account but will increase the A/P balance. However, you can pay the bill using the credits out of the unapplied check, as shown in the second screenshot.

 

 

 

Basically, the check will stay in the Cleared status in this process.

 

If you have more questions, just hit the Reply button below. If you want to see references for QuickBooks Desktop, just visit the main QuickBooks Support page. Have a good one!

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3 Comments
Highlighted
QuickBooks Team

correcting A/P entries and check payments - prior year

Hello, GolfNut72. 

 

Thank you for reaching out to the Community. If the check has been reconciled, we can link the check to the bill. Here's how to do it:  

 

  1. Open the check you created. Change the Expense account to Accounts Payable.  
  2. Drop-down arrow under Customer: Job, and choose the vendor name. 
  3. Press Save and close. 

 

Then pay the bill: 

 

  1. Click the Vendor menu, and choose Pay Bills
  2. Choose the bill attach to the check. 
  3. Hit Set Credits, then go to the Credits tab. 
  4. Enter a check on the credit. Modify the amount if require. 
  5. Tap Done. Then press Pay Selected Bills

 

You'll have to double-check the transaction history, it shows the regular check as the payment. I've got an article for more detailed steps: Bill shows as unpaid after writing a check in QuickBooks Desktop

 

That's it! Let me know how it goes by clicking the Reply button, I want to ensure that everything went well. Have a great day, and be safe always!

Highlighted
Level 4

correcting A/P entries and check payments - prior year

AileneA

 

Thank you for your reply and I understand what you suggested but I am not seeing the same things that you are suggesting.  I am working in QBDT 2019 Pro, I don't know if that makes a difference.

 

To make things easier I have included two images that describe the problem.  The first image is of the check Register showing the entry, and the second image shows the check but does not show what account it was charged against in the bill entry (I think what I just said was right).

 

I hope this helps.  I guess one option would be to delete the check and then enter the bill again and then put the right check number on it, and mark it reconciled.  I realize this isn't ideal but I've been working with this client to help him catch up his books, and I wasn't aware until recently how he was handling his business credit cards.

 

Thanks again for you assistance

 

EJ

 

Highlighted
QuickBooks Team

correcting A/P entries and check payments - prior year

Thank you for the screenshot, EJ. I'll continue to help you.

 

This scenario happens when one pays a bill via check, and then delete or void it later on. This turns the check into vendor credits since it'll be unapplied from the bill. That's why in this case, you see that the check hits the A/P account.

 

You can experiment this by creating a dummy bill and pay it with a check, and then void it.

 

You're right. Since the check is a payment to the credit card company, you can recreate the bill. But when you do it, please be sure to select the credit card account in the Expenses section, as shown in the first screenshot. This will reduce the balance of the credit card account but will increase the A/P balance. However, you can pay the bill using the credits out of the unapplied check, as shown in the second screenshot.

 

 

 

Basically, the check will stay in the Cleared status in this process.

 

If you have more questions, just hit the Reply button below. If you want to see references for QuickBooks Desktop, just visit the main QuickBooks Support page. Have a good one!

View solution in original post

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