In order to 'load' the old ARs they will (must) create an accounting entry - the trick is how you deal with it. Likely you have setup an AR account opening balance without any details attached - and now want to 'load' the opening balance details (open invoices) without doubling the AR account.
2 ways to proceed:
1 - post the prior open invoices one by one using a 'normal' sales item, and as you do so reduce the opening balance AR posting by an equal amount (simple in theory but easy to mess up).
2 - Post the opening AR balance to a temporary current asset account. Then create the open invoices using a special item that points to the temporary AR account. The new open invoices then just move the AR balance into the permanent account.
We haven't loaded an opening balance. We have set up the customers' (names/addresses/delivery route but nothing else). We plan to go live on June 1 so we will not know our opening balance until we close May. Naturally I assumed you could not have an opening balance with no detail. We do not want a subledger total that does not much the sum of the open invoices.
Actually we do not have an opening balance loaded. We have setup customers (name/address/delivery route) but no invoices or balances because we do not yet know that information as we are going live on June 1 and that information will only be known when we close May. Naturally I was assuming that we could not have an opening balance with no detail. We do not want a subledger total that does not equal the sum of the open invoice. From your reply it looks like when we load the invoices we will get an accounting entry and then we just need to reverse the entry. Is that correct?
Hello there, @TomatNelsons,
I'm here to share some information about loading open A/R invoices from your old system.
May I ask what QuickBooks product are you using? This will help me provide you the accurate steps regarding with the answer of MikeinBC above.
If you're using QuickBooks Online, you can create a normal sales item by going to the Products and Services list. You'll first need to turn on the Products and Services preferences by performing the steps below:
To create a sales item:
For more information, here's a great article you can refer to: Use A Products and Services List.
Once done, you can use the item when creating an invoice to reduce the opening balance of A/R. This way, you can keep track of individual sales that make up your customer's opening balances.
You can go through this article to help you get started with QuickBooks Online.
If the customer's opening balance is paid by applying a payment, you'll just have to reverse the entry.
If you're using QuickBooks Desktop, you can check out this article on how to create a sales item: Add, Edit, and Delete Items. Then, you can create an invoice to help you keep track of your A/R in the system.
You can also enter your opening balance for your customers during initial setup in the Desktop version. For more details, see this article: Record Opening Balance.
Before you're going live on June 1st, I'd still suggest getting the correct total amount of your open invoices after closing your books in May.
That's it, @TomatNelsons. Thanks for choosing QuickBooks as your accounting partner.
I'm here anytime you have follow-up concerns about this or you need anything else. Cheers!