How to void a vendor balance and it not affect P&L?

Rachel_I · ‎January 21, 2022

I recently found out that my company had incorrectly been using our credit card count as a vendor rather than a credit card account. I went a couple statements back and created a new credit card account in the chart of accounts with an opening balance and reconciled to get the account up-to-date. That part is perfect and I'm excited to work with our credit card that way as I can already see how much easier it will be.

My issue: We now have the balance of the new credit card account PLUS a balance with the vendor credit card account. Basically QB is telling us we owe double the amount to our credit card than we actually do, in 2 different places. I need to find out a way to essentially void the vendor balance so that its off of our accounts payable balance but I cannot have any adjustments messing with our P&L Reports. If i remove all the open statement balances, that will then screw up our P&Ls for each of those months I remove a statement. If i try to write off the whole balance, I seems to always affect the P&L of the month that the adjustment is applied. Thank you for any help and let me know if i can provide any more info for clarity of what im looking for here.

Rachel

Candice C · ‎January 21, 2022

Good afternoon, @Rachel_I.

Thanks for asking your question here in the Community. I can provide you with some information about how to void this out.

The only way for this to be done is by voiding/deleting the transactions associated with the bad/old account. However, this will also affect your Profit and Loss.

I do suggest to consulting with your accountant to be sure if this would be a good route for your business.

Don't hesitate to come back if you have any other questions or concerns. I'm always here to lend a helping hand. Wishing you and your business continued success!

Rachel_I · ‎January 21, 2022

Thank you for clarifying that. What i've done is created a credit for a very very old year marked with an explanation for the discrepancy. So old that a P&L won't matter anymore. If you see something wrong with this method let me know, otherwise I will also be double checking with my accountant. Thanks!

ZackE · ‎January 21, 2022

Thanks for getting back with the Community, Rachel_I.

I'm happy to hear Candice C was able to help verify the best way to go about voiding/deleting transactions. It's definitely recommended to check with an accounting professional prior to making such changes, if you're unsure about them.

You'll also be able to find many detailed resources about using QuickBooks in our help article archives.

Please don't hesitate to send a reply if there's any questions. Have a fantastic day!

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How to void a vendor balance and it not affect P&L?