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Level 1

How to reconcile a Liability Account with Invoices posted to it?

When an Invoice is used to collect a client deposit, and the service item posts to a Liability Account in QBO, a manually created Invoice seems to be fine. However, an Invoice processed by QuickBooks Payments does not seem to show up in the Reconcile screen to be checked off (which fits with the fact that when using the Not Reconciled Status filter in the Register, it doesn't show. So an offsetting transaction in the Account has nothing to be reconciled against. Yet, if that Invoice is manually marked with an R in the Account Register, it causes the Opening Balance to be off.

 

So how can such a Liability Account be reconciled, in order to filter a Report by Not Reconciled Status?

Has anyone found a solution?

 

Thanks much!

3 Comments
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How to reconcile a Liability Account with Invoices posted to it?

Hello @justtesting333,

 

Let me help share a few things before you can reconcile a liability account you use to track an advance payment or deposit from your clients.

 

When an online payment is made by your client, you can consider waiting for the full payment and apply it to the open invoice. Once the invoice has been closed, it'll post the correct amount into the corresponding liability account of the item used.

 

Using this method, it'll post the correct amount of invoices into your liability account so you can start reconciling it. Learn more about reconciliation with this article: Reconcile an account in QuickBooks Online.

 

Additionally, I'd recommend reaching out to your accountant for additional guidance in reconciling your liability account. If you haven't yet, you can find one near you through this link: Find an accountant or bookkeeper.

 

Lastly, you might also find this article helpful for your future specially when you need to review a report your previous reconciliation: How do I view, print, or export a reconciliation report?

 

If you have any other questions aside from reconciliation, feel free and let me know by leaving any comments below. Stay safe!

Highlighted
Level 1

How to reconcile a Liability Account with Invoices posted to it?

>>

Once the invoice has been closed, it'll post the correct amount into the corresponding liability account of the item used.

Using this method, it'll post the correct amount of invoices into your liability account so you can start reconciling it.<<

 

The correct amount is present in the register, Quick Books Payments Invoice amounts just don't show up on the reconciliation screen, even though there is no letter at all in the C or R column.

Highlighted
Level 1

How to reconcile a Liability Account with Invoices posted to it?

>>

Once the invoice has been closed, it'll post the correct amount into the corresponding liability account of the item used.

Using this method, it'll post the correct amount of invoices into your liability account so you can start reconciling it.<<

 

The correct amount is present in the register, but QuickBooks Payments invoice amounts do not show up on the reconciliation screen, even though there is no letter at all in the "C" or "R" column.

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