Contributed A/R to new company

Hi there, LawyersAcctnt.

I appreciate you for providing detailed information with your concern so that I can continue to share accurate information to correct your AR report.

You're on the right track creating a journal entry. Once the Accounts Receivable journal entry is created, you'll need to set it to reverse.

Here's how:

1. Select the Search icon on the toolbar.
2. Locate the journal entry you created and select it to open it.
3. Choose Reverse.
4. Change the Journal Date to one day after the original journal entry's Journal Date.
5. Hit Save and Close.

Please make sure that the Journal date is correct. To see additional information about the process, you can refer to this article: Resolve A/R or A/P balances on a cash basis Balance Sheet.

On the other hand, issuing a credit memo fixes the balances but doesn't "show" the contribution because the credit memo can offset the amount in Accounts Receivable.

Please refer to this article to see different information about accrual and cash accounting method in QuickBooks Online: Learn common accounting terms.

If you have further questions, please feel free to reach back out. I'm always here to help. Have a great day!

I appreciate the information but reversing doesn't help me in the long run.  The Sole Prop has not closed down, it is a going concern.  I just need to move the specifically contributed A/R.  This seems to be a short coming in QBO.  This cannot be a singular instance of needing to do this?

While I appreciate  your links to details on the differences in accrual and cash basis of accounting, as a CPA, I fully understand this.  This is not an accounting issue, it is a shortcoming in software issue.  

I appreciate the information but reversing doesn't help me in the long run.  The Sole Prop has not closed down, it is a going concern.  I just need to move the specifically contributed A/R.  This seems to be a short coming in QBO.  This cannot be a singular instance of needing to do this?

While I appreciate  your links to details on the differences in accrual and cash basis of accounting, as a CPA, I fully understand this.  This is not an accounting issue, it is a shortcoming in software issue.  

Hello, LawyersAcctnt.

For now, you'll want to continue using the journal entry to move the contributed A/R amounts. Though, this might be easier if there was a dedicated feature to easily move the balances. 

Our engineers might be working on implementing this concept into QuickBooks Online. I suggest checking our QuickBooks Blog for periodic updates about the program. 

Do you need a guide on handling your taxes for this month's tax time? Check out this article to help you get organized: QuickBooks Online year-end guide and checklist.

You can also read other articles in our general help page. Give them a shot if you need help running reports, preparing your taxes and recording other transactions. 

Please let me know if there's anything else I can do for you. I'm willing to listen and address your concerns about the program.