An invoiced item is not being credited to it's Category after being paid

billing · ‎July 26, 2024

I purchased and paid for an item for a Customer of mine; they are called a Tenant in my QuickBooks Online. The Tenant is going to reimbursement me with no markup. Let's say the item is $2.00.

So when entering the item into QBO, I check "View" under Billable for the item as well as set the Category to an "Account Type" of "Other Current Assets"; let's call this Other Current Asset, "Asset123". If I run a report on "Asset123", it now totals $2.00.

Now I create an invoice. I add the item to the invoice and the Tenant pays me. I go into Invoices and select "Receive Payment". The invoice is now marked as Paid. Great!

Now that the item has been paid and I've been reimbursed, the item should be credited to "Asset123" and "Asset123" should now total $0.00. BUT IT'S NOT. "Asset123" is still $2.00!

I've done this before but I didn't realize the item wasn't removed from the Category "Asset123". It really messed up my taxes that year. This time, I'm watching...

Did I create the item correctly?
Did I create the Invoice correctly?
Did I pay the invoice correctly?
Shouldn't the item be removed from the Category "Asset123"?
How do I fix this?

Rob

billing · ‎July 27, 2024

Solved it.

Yep! The way I expected it to work is the way it SHOULD HAVE worked. In other words, there is a bug in QBO when dealing with older line items. The problem was caused when creating an invoice, and then adding more line items at a later date/time. It made my "Asset123" Category all messed up. (It also messed up other Categories too.)

The fix was to delete the Tenant payment, completely delete the invoice, recreate the invoice, and re-add all the line item transactions back to the new invoice. When you are dealing with a 120+ line items, that is a pain and scary.

Now that I've gone through this multiple times and know what is going on, it makes me mad that I paid $15k in extra income to Uncle Sam because of this bug. I still have remnants of that mess in my QBO. I'm not sure how or if I want to fix it as that income tax return is long gone. Sigh.

Lesson: Delete your invoice and re-add it before receiving payment.

Rob

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An invoiced item is not being credited to it's Category after being paid

An invoiced item is not being credited to it's Category after being paid

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