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VTSTOC
Level 1

Cleaning up old Accounts Receivable

I have inherited a Quickbooks setup for a very small municipality where many JE were used to record payments and invoices for Property Taxes.   This has left a large number of transactions that if matched up would be zero balances.  They show in the Open Invoice Report and some show as invoices on the receive payment screen, but not all.  It is a mess however, my Open Invoice report, The Open balance Summary and the General Ledger for A/R are all in balance.  What is the best way to fix this?  Short of setting up a new company and starting over.  Thank you for any guidance.

1 Comment
Joesem M
QuickBooks Team

Cleaning up old Accounts Receivable

Thanks for posting in the Community space, @VTSTOC.

 

I'd be glad to share information on clearing old Accounts Receivable. To start, let's create a general journal entry to write off your accounts receivable.

 

Here's how:

 

  1. Go to the Company menu.
  2. Select Make General Journal Entries.
  3. In the Make General Journal Entries window, change the date and fill in the entry number if necessary.
    1. Go to the Account field. then choose Accounts Receivable.
    2. Enter the amount under Debit column.
    3. Choose a Customer Name from the drop-down list.
    4. In the next line, select the offset account.

 

Once done, let's apply the General Journal Entry to the Existing Credit.

 

  1. Click the Customers menu
  2. Choose Receive Payments.
  3. Enter the name of the customer in Received From field.
  4. Click the invoice and choose Discounts & Credits.
  5. Under the Credits tab, choose the available credit.
  6. Click Done.
  7. Hit Save & Close.

For more detailed steps, please click this article: Write off customer and vendor balances.

 

Upon sharing this, I still suggest consulting an accountant to help and guide on how to record this. He/She can provide more expert advice in dealing with this concern.

 

Should you need to run some reports in QuickBooks Desktop, feel free to check out this article: Understand reports.

 

You can always add another reply below or post another question if you need anything else and I'll get back to you. Take good care.

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