Need help with a journal entry to remove credits in accounts payable.

Hi there, @ckbw8202.

Glad to have you here in the Community. I can provide some insights about moving the credit from your unpaid bills in QuickBooks Desktop. 

You can write off the credits that are hanging on your unpaid bills to clear it from your from your accounts. We recommend two ways to remove the amounts. However, make sure to consult your accounting professional before trying any of these options. This is also to ensure that your books will be recorded accurately.

The options are:

• Creating a General Journal Entry to write off the amount.
• Using discounts to write off small amounts.

To learn more about the steps on this process, please check out this article: Write off customer and vendor balances.

If you need assistance with performing the process, feel free to reach out to our Customer Care Team. They have the tools to check on your transactions and guide you all throughout the procedure.

To do that:

1. In your browser, navigate to https://help.quickbooks.intuit.com/en_US/contact
2. Choose QuickBooks Desktop.
3. Select the issue or topic.
4. Click the Green Phone button to get the support number.

I'm just a reply a way if you have any questions about these steps or with QuickBooks. Wishing you and your business continued success.

Betty Jane,

Thank you for your reply. I have contacted customer support also on this matter. I've read the article as well. I am unclear as to how to set up the "Offset" (contra account) to do the Journal Entry. Also read a different questions on here that was similar to mine only a refund was given. I followed those steps and it did clear it out. The person giving advice said that a Journal Entry was not the correct way. They advised entering a deposit to clear it but I do not need extra money hanging in a bank account that is closed so that was not a good solution for me, perhaps because I did not receive a refund in the form of a check but actually just had credits for the credit card statements instead of bills. If anyone can provide support on setting up the "Offset" account, I would appreciate it.

I've got you covered, ckbw8202.

Allow me to join this discussion and provide the information you're looking for. The steps below will guide you through the steps on how to set up the Offset account:

How to set up a Clearing Account in QuickBooks

1. Select Accounting in the left navigation menu.
2. Click the New button.
3. From the Account Type and Detail Type drop-down menus, choose Bank and Cash on hand respectively.
4. Name the account, for example, Offset account or Clearing account.
5. Do NOT enter a balance.
6. Click Save and Close.

For additional insight about this, you can check out our guide on how to set up a Clearing (offset) account. 

That should get you going in the right direction. Keep in touch if you need more help removing the credits in the Accounts Payable account. I've always got your back!

Okay. So, I believe I did it correctly as it made the report show "0" but why is it still there at all? It shows the credits and then, my Journal Entry on the Unpaid Bills Report. And it shows a 0 balance owed to the credit card company. Why isn't it just gone?

This did not solve the problems as when I go to my bill pay window...it is still there showing we owe that...now, it shows as a bill in that window.

Hi, ckbw8202.

Allow me to provide a little more information about removing credits in accounts payable via QuickBooks Online.

You may want to check if the credit was successfully linked to your journal entry. Once you verified and still getting the same issue, I'd suggest consulting an accountant to help and guide on how to correct the balance. Your accountant can provide more expert advice in dealing with this concern.

You may find these articles helpful:

• https://quickbooks.intuit.com/community/Help-Articles/Create-a-journal-entry/m-p/192925.
• https://quickbooks.intuit.com/community/Payments/Apply-a-credit-memo-credit-or-refund-to-a-customer/....

As always, if you need more help with QuickBooks in the future you can call our dedicated team who will be happy to assist you. To reach us, please follow these steps:

1. Sign in to your QuickBooks Online company.
2. Click (?) Help at the upper right corner.
3. At the bottom, click on Contact us.
4. Type in your concern then hit Continue.

If you require more information about credits and accounts payable in QuickBooks Online, feel free to drop a reply.