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Senior Explorer *

Bills entered into payables

I have a bill in AP that was partially paid upon and now I need to get the balance out of my AP because the client paid the vendor directly so we now no longer owe on the bill.  How do I do this? If I just delete it then the partial payment will be affected.

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Best answer 07-10-2019

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QuickBooks Team

Re: Bills entered into payables

Thank you for getting back to us, @missymarykay55.

 

You can still clear your Accounts Payable (A/P) by creating the same journal entry. Let me guide you through the steps for QuickBooks Desktop.

 

As my colleague mentioned above, before creating a journal entry, I suggest contacting your accountant. This way, they can give you their best advice in clearing you’re A/P.

 

You can follow these steps in creating the journal entry:

  1. Click on Company from the menu bar.
  2. Choose Make General Journal Entries.
  3. In the Account column, enter Accounts Payable.
  4. Enter the amount on the Debit column.
  5. Choose the name of your vendor.
  6. On the next row, choose the clearing account.
  7. Enter the amount on the Credit column.
  8. Click on Save & Close.

Then you can apply the journal entry to your existing bill. Here’s how:

  1. Open the bill.
  2. Click on Pay Bill.
  3. Select the Set Credits button.
  4. Tick on the journal entry from the Credits tab.
  5. Click on Done.
  6. Click on Pay Selected Bills.

We also have out Help Articles page in case you want to learn some processes in QuickBooks Desktop.

 

Please let me know if you have any other questions or concerns. I’ll be here to help.

3 Comments
QuickBooks Team

Re: Bills entered into payables

Thanks for taking the time to reach out to the QuickBooks Community, @missymarykay55

 

Let me help share some information about clearing Account Payable (A/P) balance in QuickBooks Online (QBO). 

 

The most efficient way to clear any payables is to pay it off. Aside from making journal entries, this includes creating a clearing account. However, it would still be best to consult with your accountant to make sure what's best for you and your business.

 

To create a journal entry, here's how:

  1. Click the Plus sign (+), then choose Journal Entry.
  2. In the Journal Entry window, change the date if necessary.
  3. In the Account field, choose Credits from the drop-down list.
  4. Enter the amount in the Debit field.
  5. Select the Name from the drop-down list.
  6. In the next row, choose the off-setting or the clearing account in the Account field.
  7. The amount in the Credit field should be equal to the amount in the Debit field.
  8. Click Save & Close.

Once done, apply the general journal entry to the existing balance by following these steps:

  1. Go to Expenses, and then choose Payee at the top.
  2. Look for the Bill to pay.
  3. Click the Make Payment button in the top-right corner.
  4. When the Bill Payment window opens, the Journal Entry will be under the Credits section.
  5. Select the Bill and the Journal Entry to link them.
  6. Click Save & Close

If you need further assistance with the steps, I recommend contacting our QuickBooks Online Support Team. They have additional tools to pull up your account and do a screen-sharing. 

 

Here's how to contact our customer support:

  1. Sign in to your QuickBooks Online company.
  2. Select Help (question mark icon) at the top right.
  3. Select Contact us to connect with a live support agent.

Please let me know if you have any additional questions about the A/P balance. I'd be happy to answer them for you. Have a good one. 

Senior Explorer *

Re: Bills entered into payables

This doesn't help me I have Quickbooks Desktop so your instructions didn't help me sorry.  I need to know how to make the correction in the desktop version.  Thank you

QuickBooks Team

Re: Bills entered into payables

Thank you for getting back to us, @missymarykay55.

 

You can still clear your Accounts Payable (A/P) by creating the same journal entry. Let me guide you through the steps for QuickBooks Desktop.

 

As my colleague mentioned above, before creating a journal entry, I suggest contacting your accountant. This way, they can give you their best advice in clearing you’re A/P.

 

You can follow these steps in creating the journal entry:

  1. Click on Company from the menu bar.
  2. Choose Make General Journal Entries.
  3. In the Account column, enter Accounts Payable.
  4. Enter the amount on the Debit column.
  5. Choose the name of your vendor.
  6. On the next row, choose the clearing account.
  7. Enter the amount on the Credit column.
  8. Click on Save & Close.

Then you can apply the journal entry to your existing bill. Here’s how:

  1. Open the bill.
  2. Click on Pay Bill.
  3. Select the Set Credits button.
  4. Tick on the journal entry from the Credits tab.
  5. Click on Done.
  6. Click on Pay Selected Bills.

We also have out Help Articles page in case you want to learn some processes in QuickBooks Desktop.

 

Please let me know if you have any other questions or concerns. I’ll be here to help.