How to clear outstanding amount from customer's account?

Thanks for taking the time to write down your concern here, Ohn. Let’s resolve those outstanding accounts receivable balances by following a few steps in QuickBooks Desktop. I’ll walk you through the process.

There are several ways to clear Accounts Receivable (AR) balances in QuickBooks. We can use several methods depending on the nature of the balances and the reason for clearing them. Here are the most common ways:

First, apply for the payments by utilizing the Receive Payment feature in QuickBooks Desktop.

Here's how:

1. From the QuickBooks Home page or the Customers menu, select Receive Payment.
2. In the Received From dropdown, select the customer's name.
3. Enter the Amount received.
4. Make sure the date is correct, then choose the Payment method.
5. Select the invoice or invoices you'd like to pay.
6. To add a discount or credit, select Discounts and Credits.
7. Select Save & Close.

Second, create a credit memo and apply it to an open invoice or create a refund for customers.

1. From the Customers menu, select Create Credit Memos/Refunds.
2. Choose your customer.
3. Enter the items you're giving credit for, then select Save & Close.

After that, enter the credits under the Receive Payment section:

1. Select Customers and then Receive Payments.
2. Under the Received from dropdown, select your customer.
3. Then, select the Discounts and Credits icon.
4. On the Credits tab, check the credit you want to apply and then Done.
5. You may see a prompt to confirm the transfer. If you do, select Yes. The amount will be applied automatically to the invoice.
6. Select Save & Close.

Third, when you have determined that an invoice is uncollectible, we can create a write-off of bad debts, to offset accounts receivable balance. Please refer to this article for your guide: Write off bad debt in QuickBooks Desktop.

In case you need additional guidance for handling accurate expense accounts and for bookkeeping purposes, you can find an accountant near your area through this article: Find a QuickBooks Certified ProAdvisor. 

It will be my pleasure to provide more information and help regarding your accounts receivables in QuickBooks Desktop. Let me know by adding a reply below.

Hi Christine,

Thank you for your reply and explanation. I have one more question. If choose the first method, which date should I choose? I have closed the month of April 2024 finanical statement. I am preparing to close for the month of May 2024 financial. Should I use May 30,2024 date to make this transaction? Thanks

Let's connect you to the right support that will help you keep your customers' balances and financial records well-organized, Ohn.

In a situation where your books are closed, it's a good idea to reach out to an accountant. They can help you determine the best date to record the payment without affecting your accounts. You can also open the link shared by my colleague above to find certified QuickBooks accounting professionals.

I've added a link that provides solutions for clearing small balances from your customers' and vendors' accounts: Write off customer and vendor balances.

If you need guidance on managing customer transactions or processing refunds and credits, feel free to use these resources to help you navigate the steps: 

• Get started with customer transaction workflows in QuickBooks Desktop
• Give your customer a credit or refund in QuickBooks Desktop for Windows
  
  

Stay in touch if you have additional questions or concerns about managing sales and customer-related transactions. We'll get back to make sure you're well taken care of.