Invoices is charged to Advances to Employees and Officers and Not in Accounts Receivable

Hi there, Kibonbon.

Welcome back to the QuickBooks Community. I'll share information on how data works in QuickBooks Online and ensure that your transaction categorizes properly.

For most transactions in QuickBooks Online, the entries of debits and credits are handled by QBO. However, the way debits and credits work depend on how the data is being entered. That said, QuickBooks rely on how the transaction being moved to another company or in the system. With this, it might be the reason why the entry is charged to Advances to Employees and Officers, not in Accounts Receivable.

To sort this, I recommend going to the Chart of Accounts. From there, you'll be routed to the Account Register section to see all entries associated with the specific account. Then, you'll have to edit or update the transaction to ensure that this is properly record.

Here's how:

1. Open the correct QBO company and go to the Accounting menu on the left panel to choose Chart of Accounts.
2. From the list, select the Advances to employers and officers account and click the View Register link to see all the transactions.
3. Click on the deposit you’re working on to expand the line.
4. Press the Edit menu to view the transaction details.
5. Then, change the posting account to the right one.
6. Hit Save and close.

You can also create a journal entry. This way, you're able to transfer the amount of payment from one account to another. While doing this, I'd recommend consulting an accountant for guidance so your account stays accurate.

Here's how

1. Click the New button.
2. Select Journal entry.
3. On the first line, select an account from the Account field. Depending on if you need to debit or credit the account, enter the amount in the correct column.
4. From the next line, choose the other account you're moving money to or from.
5. Review the amounts. It should have the same amount in the Credit column on one line and the Debit column on the other. 
6. Fill in the other necessary field. Then, hit Save and new.

For additional information, you can click this article: Create a journal entry in QuickBooks Online.

Please refer to the articles below on how the account receivable, debits, and credits work in QuickBooks Online.

• How accounts are affected by debits and credits.
• Learn common accounting terms.

Please leave a comment below if you need any further information. I'm always here if you need anything else.

Please see attached screenshot.

Advances to Officers and Employers is also a type of receivable account.

Before I transferred my data when I make an invoice it is charge to AR perfectly. Making it a default AR.

But now when I checked even before the past invoices dated 2018, it is charged to Advances to Officers and Employers, like the default AR is changed. Please tell me the steps to change it like before.

This is when I make an invoice, it is charged to Advances not to AR.

Then this is when I receive a payment. It is charge again to Advances.

Hello there, Kibonbon.

I appreciate you sending us a screenshot and all the information that you have provided for us to easily understand your concern.

One of my peers, ChristieAnn, provided the steps on how you can correct the transactions which are recorded on the wrong account. This would definitely help you record the transactions to the right account.

You can also check and learn about the chart of accounts in QuickBooks.

Feel free to reach back out to me if I can be of more help about recording the transactions to the right account. I'll make sure to get back to you as soon as I can.

I can't seem to follow the instructions given. Can you add screenshots in the instructions? I'll appreciate it if you can.

Thank you.

Hi there, Kibonbon.

Welcome back to the thread, Kibonbon. I'll ensure to provide screenshots from the steps I provide above.

The first instruction I shared is going to the Chart of Accounts and you'll be routed to the Account Register section to see all entries associated with the specific account.

For Journal entry, here's the screenshots:

I'm adding this article to further guide you in effectively managing your business using QBO: Help guide for QuickBooks Online. It contains topics about advanced accounting, banking, and payments to name a few.

Let me know if there's anything else you need help with. Know that I'm always here to help you anytime. Take care and keep safe!

These billings are ordinarily archived on proper solicitations, which are summed up in a records receivable maturing report.

ElonOne