A check was printed and mailed to a vendor of $ 134.00 back in October 2019, however, the finance manager paid the same expense directly through his American Express credit card. So the vendor returned the check and I voided it in Quickbooks. As the amount was showing up as payable in the AP aging summary I reversed the payment through a journal entry by debiting the AP and crediting the respective expense. All seems good until this.
Now I was comparing my bank reconciliation register balance amount to the amount in the balance sheet as of October 2019 till February 2020 - it all matches however the January 2020 balance has a difference of $ 134.00. I see this amount in the uncleared lists from my reconciliation but I can't find it in the list of details when I open the balance sheet account.
What could be the reason for having this difference? And why is it showing me this difference in January 2020 instead of October 2019 as the payment was made and returned in October 2019?
I'm happy to help out here. If you voided the check and recorded the direct payment via Credit Card, then the expense should only have been recorded twice. The amount of $134 that you're seeing under uncleared on the reconciliation report is the Journal Entry that was created. We don't recommend using Journal Entries to modify Accounts Payable or Accounts Receivable, as it bypasses the customer or vendor accounts and simply hits the register. I recommend removing the journal entry that was created and try the reconciliation again. You may want to consult with an accountant to ensure this process goes smoothly.
If you need to find an accountant, I recommend checking out our FindaProAdvisor website. You can search for someone in your area that's certified in QuickBooks Online to help you get this figured out.
Let me know if you have any other questions by using that Reply button below. I'm here to ensure your continued success.
I tried it by removing the journal entry but the bill appears as payable in my AP aging summary list. Is there another way to reverse a bill I already created other than deleting it? I am avoiding any deletion of data so that it allows me to trace my work anytime in the future.
Also, the link you provided me for contacting an accountant is not working.
Thanks for following up with deleting a journal entry from a bill.
Before going into detail, I suggest consulting with an accountant to ensure that your books are accurate. You can check the Find an Accountant web page to search for an accountant where you're located.
In the meantime, there's not a way to reverse the bill without deleting it. You can remove the linked Bill Payment by deleting it, and then you'll be able to remove the bill as well.
Below are the steps with how to delete a bill:
In the Expenses tab, locate the bill to delete.
In the Action column, click on Delete from the drop-down menu.
If you have any more questions, I'm only a comment away. Happy Tuesday!