Unallocated Funds

I appreciate the time and effort you spent sharing details about your concern, as it helps me understand your situation better, lwinthrop. I'm here to provide information about managing past intercompany transactions to ensure accurate financial statements and year-end reports.

QuickBooks Desktop Enterprise lets you record invoice payments between separate company files, allowing transactions in the home branch to appear in the primary company file via Intercompany transaction journal entry. However, this option isn't applicable since you're trying to move a transaction to a closed company file.

Moreover, there isn't a direct way to remove transactions from a reconciled company file without affecting your year-end balance sheet. I recommend consulting with an accounting professional for guidance. They have the best ideas for managing historical transactions to maintain accurate financial records. They'll possibly make a Journal Entry that debits your A/R to balance the account to zero.

If you don't have an accountant, know you can get one by scanning this webpage: Find a QuickBooks ProAdvisor.

Additionally, you can reference this article for more details on managing debits and credits in a journal entry: Create a journal entry in QuickBooks Desktop for Windows or Mac.

If you have other questions about handling historical transactions within the program, tag me in your reply, and I'll get back to you as soon as possible. Have a great day ahead.

@lwinthrop 

It depends on whether LA Co. is closed/liquidated and how you closed out the open invoice.  Did you write it off to bad debt expense or ??? 

LA Company is closed as of 5/20/2024.

There was no invoice on the TX side. This was funds deposited into our TX bank account meant for the LA invoice, but the funds were never transferred to the LA bank account. We just need to remove the amount from the TX A/R without impacting the 2023 bank reconciliations or balance sheet. To correct this in 2024.

@lwinthrop 

Understood that there's no invoice on the TX side, but what happened to the LA invoice?  That's important to know because how you close out the TX A/R credit depends on how LA closed the invoice.  There was an open LA invoice that never had a payment applied, so how was it closed?  Is it still open?