Hello there, Ber3. To remove stray entries from the General Ledger in QuickBooks Online (QBO), you can create and apply a Journal Entry to adjust the affected accounts and ensure your financial records are accurate.
Here's how:
- From the left-hand navigation bar, click the + Create tab.
- Select the Journal Entry option under the Other section.
- For each account affected (as identified in the General Ledger report), perform the following:
- Add Debits for accounts that contain credits in the zero-balance transactions.
- Add Credits for accounts that contain debits in the zero-balance transactions.
- In the Memo field, add a description for clarity. For example: (Adjustment to clear zero-balance migration errors from 2007/2008).
- Use a date that corresponds to when these transactions occurred (e.g., 12/31/2008), or use the current date for tracking purposes.
- Once all accounts and offsets have been entered, click Save and Close.
Since you mentioned encountering a stray $4.00 balance in Accounts Receivable (A/R) and a corresponding $4.00 amount in Retained Earnings, you can clear these amounts by creating another Journal Entry.
Here’s how:
- Navigate to + New > Journal Entry in QBO.
- In the Journal Entry Form, enter the following:
- Debit: Retained Earnings for $4.00 (this reduces the Retained Earnings balance).
- Credit: Accounts Receivable for $4.00 (this removes the stray A/R balance).
- Assign a Customer: Since A/R is a customer-linked account, assign the appropriate Customer to the A/R entry.
- Add a Memo for Clarity, such as: (Adjusting stray $4.00 A/R and Retained Earnings from migration error).
- Save and Close the Journal Entry.
After creating and saving the Journal Entry, it’s important to verify that the changes have been applied by running relevant reports (e.g., General Ledger) and confirming both the A/R balance and the Retained Earnings balance have been cleared.
If you have any further questions, feel free to comment below.
