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Level 2

MK Old unpaid Customer Invoices and Bills

MK. I took over the bookkeeping recently and found either partial or totally unpaid customer invoices from as far back as 2014. For example in the the Open Invoices I have the following:

6/6/2014  xyz Corp.  $10,000.

This invoice was originally $40,000 but ony $30,000 was paid.

The accounts receivable as of 11/19/2020 are correct.

I simply want to clear our these remnants without affecting the financials.

Any toughts.

thanks,

mike

 

 

3 Comments
QuickBooks Team

MK Old unpaid Customer Invoices and Bills

I can provide the steps to zero out the balance in 2014, devapatir.

 

You can consider writing it off as a bad debt to ensure your accounts receivable and net income is balance. Let me guide you through the steps on how to correct this:

 

Step 1: Add an expense account to track the bad debt

 

  1. Go to the Lists menu, then select Chart of Accounts.
  2. Select the Account menu, then New.
  3. Choose Expense, then Continue.
  4. Enter an Account Name (Bad Debt).
  5. Click Save and Close.

Step 2: Close out the unpaid invoices

 

  1. Go to the Customers menu and select Receive Payments.
  2. Enter the name of the customer in the Received from field.
  3. For Payment amount, enter $0.00.
  4. Select Discounts and credits.
  5. In the Amount of Discount field, enter the amount you'd like to write off.
  6. For Discount Account, select the account you added in step 1, and select Done.
  7. Click Save and Close.

Stay on top of your customers' open balances with the Accounts Receivable Aging Detail report. And, customize it to check your daily statement.

 

Let me know if you need additional information by commenting below. I'm always right here to help ensure your accounts are accurate.

Level 2

MK Old unpaid Customer Invoices and Bills

Thanks MarylandT,

As I mentioned in my question, the AR balance as of today is exactly correct there are no excess amounts due. I just want to eliminate the invoices without any effect on the financials.

If I do what you say wil there be any changes in the P&L and Balance Sheet.

Thanks,

Michael

 

Moderator

MK Old unpaid Customer Invoices and Bills

I appreciate the quick response, devapatir.

 

Yes, deleting an invoice will affect your Accounts Receivable and Balance Sheet. Instead, you'll want to void it then create a Journal Entry to offset the amount. This way, QuickBooks will keep the invoice number and list it in reports but changes the amounts to zero.

 

Before doing so, I suggest consulting your accountant to guide you with the correct debit and credit accounts to use.

 

Here's how to create a journal entry:

 

  1. Go to the Accountant menu.
  2. Choose Make General Journal Entries.
  3. Fill in the necessary information by adding the account from which you are moving the money.
  4. Click Save & Close.
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Check out this article about Transaction Journal report in QuickBooks Desktop for additional information.

 

Please let me know if you have other concerns. I'm just around to help. Take care always.

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