cancel
Showing results for 
Search instead for 
Did you mean: 
ChordAccounting
Level 2

How to fix a deposit in order to clear AP Vendor Credits

I am following the instructions in this related post: https://quickbooks.intuit.com/learn-support/en-us/manage-vendors/record-a-vendor-refund-in-quickbook...

 

I have Vendor Credits (insurance refund from prior Insurance Co) I would like to clear from my A/P Report as advised by my CPA. I created Credit Memos for all of the checks and added the refund checks to the deposit (back in April). All checks were deposited, cleared and reconciled. According to the above link, I did the deposit incorrectly and now need to fix that before I can follow the remaining instructions.

 

When I added the refund checks to the deposit, I DID NOT use the Accounts Payable account for the From Account and instead used the Insurance Expense account. The other checks in the deposit were for Undeposited Funds (A/R). I tried to change the From Account for the refund checks to be A/P, but got the "Warning: You cannot use more than one A/R or A/P account in the same transaction." message.

 

Do I need to split the reconciled deposits in order to change the From Account? What is the best way to fix this? Once the deposit is fixed, will I be able continue with the Vendor Refund process?

 

 

 

Solved
Best answer October 01, 2020

Best Answers
Jen_D
Moderator

How to fix a deposit in order to clear AP Vendor Credits

Thanks for getting in touch with us, @ChordAccounting,

 

QuickBooks will not allow you to use both Accounts Receivable and Accounts Payable in one entry. If you need to adjust a vendor's balance or clear A/P, use the steps found in this article: Write off customer and vendor balances.

 

Make sure to consult an accounting professional before doing any adjustments to get proper advice with your books. Once everything is cleared, you can follow the rest of the steps on the article you referenced in your post.

 

If you have any more questions or clarifications after trying out the steps, let me know in the comment below. I'll be right here to help. Have a nice day!

View solution in original post

1 Comment
Jen_D
Moderator

How to fix a deposit in order to clear AP Vendor Credits

Thanks for getting in touch with us, @ChordAccounting,

 

QuickBooks will not allow you to use both Accounts Receivable and Accounts Payable in one entry. If you need to adjust a vendor's balance or clear A/P, use the steps found in this article: Write off customer and vendor balances.

 

Make sure to consult an accounting professional before doing any adjustments to get proper advice with your books. Once everything is cleared, you can follow the rest of the steps on the article you referenced in your post.

 

If you have any more questions or clarifications after trying out the steps, let me know in the comment below. I'll be right here to help. Have a nice day!

View solution in original post

Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up

Need to get in touch?

Contact us