Hi, I have a Chart of Accounts, Bank. Can I make it inactive if I'm not using it? When I try, it says "This completes all transactions associated" what does it mean?

Hi there, @Aaron.

I'll be sharing information on how to make your bank account type inactive in the Chart of Accounts (COA) and also what the alert means when trying to inactive it in QuickBooks Online (QBO).

Yes, you can inactive your bank account type in COA, the cue "This completes all transactions associated" provides important information that should be considered before making an account inactive. Here's what you need to know before making it inactive:

• You cannot permanently delete an account, except for merging one account into another.
• Making an account inactive doesn't remove its transactions. Transactions associated with any deactivated (deleted) account stay intact.
• You can't edit a transaction associated with an inactive account. To be able to successfully edit/delete the transaction, you must restore the account first, then go to the register and delete the individual entry. After that, analyze the account and correct it to a zero balance before deactivating it.
• Before making a balance sheet account inactive, correct the balance to zero. If the balance is not zero, QuickBooks Online makes an automatic adjustment entry to zero out the non-zero balance of the inactive account. The automatic entry posts to the Opening Balance Equity account, which is the equivalent of posting to previous years. The entry could potentially cause incorrect tax info to be filed.

Moreover, when you're ready to make an account inactive here's how:

1. Go to Settings ⚙ and select Chart of Accounts.
2. Find the account you want to delete.
3. Select the Action ▼ dropdown and select Make inactive.

To learn how to make accounts inactive from your chart of accounts, you can check this article: Make an account inactive on your chart of accounts in QuickBooks Online

Additionally, here are some articles that you can read to help how to reconcile your accounts, so they always match your bank and credit card statements in QBO: Reconcile an account in QuickBooks Online

If you have any questions or require further assistance with your Chart of Account, please don't hesitate to contact the Community. We are here to help you navigate and wish you the best of success!

@ShaniamarieC you didn't actually answer the question, instead you just copy/pasted the instructions on how to deactivate an account.

What does it mean when it says "this completes all transactions associated with the accounts?"  What transaction are potentially going to be closed?  I am trying to close a COG account and this warning and your copy/pasted response doesn't help with understanding what QBO is saying or potentially going to do.

Please do not respond with another copy/pasted answer!

Let’s clarify the message you’re seeing in QuickBooks Online (QBO) and what it means in the context of closing a Cost of Goods Sold (COGS) account, LaughingYeti.

When you see the message "This completes all transactions associated with the accounts" while trying to make a COGS account inactive in QuickBooks, it indicates that QuickBooks is cautioning you that deactivating this account will impact all posted transactions associated with it.

If you decide to make the account inactive, please check the following details provided by my colleague above before you proceed.

You'll want to review the links below for further details and tips about handling accounts:

• Create subaccounts in your QuickBooks Online account chart.
• Organized with parent accounts and subaccounts.

You can comment if you have other concerns about managing your Chart of Accounts in QuickBooks. We'll be here to help and provide assistance if you need it. Have a wonderful day!

What do those articles you copied and pasted have to do with deactivating an account and getting this warning?  Both of those articles are about creating or adding an account to the Chart of Accounts while the inquiry is about deactivating an account.  Neither of those articles provide any information related to the inquiry.

You said "If you decide to make the account inactive, please check the following details provided by my colleague above before you proceed," but the only information in your colleague's reply is that balance sheet accounts will automatically get a journal entry to zero out any balances when they are deactivated. 

What does the system "complete" for other types of accounts?  What does it do for COGs, Expenses, Income, etc?  What exactly is it "completing" and how is it doing that?

Again, please don't copy and paste articles or links to provide information that doesn't address the actual question. 

Hello there, @LaughingYeti. I'm here to provide additional details about the message prompt you received in QuickBooks Online (QBO).

To begin, the supplementary articles provided by my colleague LeizylM offer essential guidance specifically for managing sub-accounts.

On the other hand, the information from ShaniamarieC highlights important considerations to keep in mind before inactivating an account and explains how this action may impact your existing and future transactions.

To answer your query, the prompt you encountered serves as a notification that deleting the account will result in all transactions associated with it being cleared, completed, and recorded within the accounting system. QBO implements this measure to enhance accuracy, streamline workflow, ensure compliance, and promote careful management of your financial data.

Moreover, please refer to this article for more information on inactivating an account: Make an account inactive on your chart of accounts in QuickBooks Online.

Additionally, ensure to reconcile your accounts to keep them accurate and up-to-date.

Let us know if you have other concerns about deactivating your account in QBO. We're here to help you in any way we can.