My Vendor Center has old uncleared transactions from 2014, 2015 - how do I continue to use these accounts for current business and get an accurate balance? I do not want to reconcile old years.
For example: Supply House (Ferguson Enterprises) has old invoices that previous bookkeeper did not reconcile. They were paid IRL, but general entries were made to reconcile (Drives me insane but my accountant does not want to go back and rereconcile previous years). When I go in to make a current payment, I have to sort through all the old, unpaid invoices to pay the current ones.
Thanks in advance
Pleased to have you here in the Community, @Kimba.
When you’re busy running a business, an outdated list of uncleared transactions is the last thing you should have to deal with. I’d like an opportunity to help you clear out the balances in your Vendor Center.
To ensure you have a correct and accurate balance, I have two ways for you to choose from. You can manually apply payments one by one or write off vendor balance. When you write off the uncleared transactions from your record, it gives you the security you have correct data. Thus, you need not to worry anymore if your business will be subject for auditing since once reports are generated everything is well accounted for. And if everything is in the right figures, it reflects correct standing of business.
That should do it!
Keep me posted on how things work on your end. I’m always here to help you manage your vendor balance. Have a great ahead!
I had not thought about writing off the old balances - would that effect this year's business at all - since they are not really written off - just entered incorrectly into QB in the first place.
I thought about marking the old account as Ferguson OLD and creating a new one called Ferguson NEW - to let go of all those uncleared items, but I may like this option better. I will check in to this with my accountant.
Delighted to hear again from you, @Kimba.
Allow me to share additional information about writing off your vendors balance.
To make sure your latest accounting records will not be affected, indicate the date for 2014-2015 on the journal entry. On the other hand, if you are trying to create a New Vendor, that's fine. However, the balances coming from those OLD vendors will still show on your Reports.
That's it! If there are any program features you’d like to get more familiar with, feel free to visit our Community page. I’m always here to lend a hand.
I am trying to follow the instructions and entering the first JE is asking for a customer for the Accounts Receivable account. There is not a Customer, this is for Vendors. These are Vendor Bills that remain UNCLEARED that I am trying to clear so that when I make payments in 2018 to the Vendor, I do not have to go through all the old ones from 2014. 2015...etc. I redid it using this example - and used Accounts Payable in the Debit Column, and Job Materials Purchased in the Credit column..... how do I clear the Bills?
Using the instructions, it applies to Customer, not Vendors - so I can not clear these off - there is no Credit, as this is not a Customer. It's a Vendor. How do I clear Vendor Bills, please?
Good day, @Kimba,
Allow me to chime into the conversation and add some information to fix your vendor balance.
Typically, the steps to fix your vendor's balance is mostly similar to customers. You'll only need to use the Accounts Payable account when creating a journal entry. Here's how:
That should do it, @Kimba. Please let me know how this goes. I'm here to help you anytime. Have a good one!
Thank you, @Anonymous,
I figured that how to mak3 the JE, but how do I clear each individual previous year bill from 2014 to stop the old Vendor Bills from coming up when I go to pay new bills?
For example, I have $20,000 old Vendor bills from Ferguson from 2014. I made the JE, but how to I mark each Bill from 2014 totaling $20k so the appear cleared?
You'll want to apply the journal entry to the existing debit/credit to clear the bill:
This is found in the article Write off customer and vendor balances under "Accounts Payable."
We're here if you have any more questions.
Thank you - I was able to make the JE for 12/31/2014, and when I go into Pay Bills, I select all the entries from 2014, click Set Credits, and that amount is not there to apply. I tried using the date 1/1/2015 and it still does not appear as an option to apply it under "Set Credits". Not sure where to go from here.
Nice to see you here in the Community today, Kimba.
Allow me to step in for a moment and ensure you're set in the right direction for determining why the credits do not appear.
The most likely reason why they're missing is that the option in QuickBooks to automatically use credits has been activated. To confirm this, let me lead you to Preferences window and show you where you can find this option:
If it is, I recommend unchecking it, then click OK. After that delete the journal entry that you made, then recreate and reapply it according to the steps provided by my colleagues, Jen_D and ShiellaGraceA.
That should do the trick. I'm confident that you'll be able to clear those vendor bills in no time.
Please know that I'm always here to provide help and answer any questions that you may have, so don't hesitate to reach out to me again. Thanks for coming to the Community, wishing you and your business all the best.
So - I think I figured out how to make the amount appear in the credits area - I have to use the Debit amount first, then credits in the JE: I read the instructions here to use Credit account first, then debits.
Now, before I hit accept - it is asking me to write a check. This seems wrong to me, as well. I do not want to affect my bank balance. I am attaching the screen shot here.
Thanks or providing us some updates about this concern, @Kimba.
I'm here to provide some clarifications with this concern and get this sorted out.
You'll need to click on the Set Credits button on the Discount & Credit information section. Doing this will zero out all the amounts to be paid. This won't affect your bank balance since the amount is still covered with the current credits.
You can also check out this article about recording journal entry and pay bills in QuickBooks Desktop for your future reference:
However, if you need additional assistance with this matter, feel free to reach out our Customer Care Team.
Please let me know if you have any other questions about this concern. I'll be around to help you out. Have a great weekend ahead!