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how to cancel out an old open invoice vs. a journal entry I made to cancel the invoice. still both show on the aging report

how to cancel out an old open invoice which I did cancel out with a general ledger. invoice is dated for june 2018, the journal entry I made on december 2018. so every time I run A/R aging detail I see these 2 transactions.

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how to cancel out an old open invoice vs. a journal entry I made to cancel the invoice. still both show on the aging report

Hi there, @marjanbastani.

 

Welcome to the Community. I can share some information about how you can handle the old invoice from the A/R Aging report.

 

When canceling the transaction using a journal entry, please make sure you're using the correct accounts. It should remove the invoice from the aging report when performing the process.

 

Since we're unable to suggest which accounts to use, I recommend seeking expert advice from an accountant. This way, you'll be able to ensure your books are accurate and error-free.

 

If the invoice you're trying to cancel is an uncollectible balance, you can consider it as a bad debt. You'll need to create a new expense account and item.

 

To create the account:

 

  1. Go to Settings ⚙ and select Chart of Accounts.
  2. At the upper right, select New to create a new account.
  3. From the Account Type ▼ dropdown menu, select Expenses.
  4. From the Detail Type ▼ dropdown, select Bad debts.
  5. In the Name field, enter “Bad debts.”
  6. Select Save and Close.

For the item, here's how:

 

  1. Go to Settings ⚙ and select Products and Services.
  2. At the upper right, select New, and then Non-inventory.
  3. In the Name field, enter “Bad debts.”
  4. From the Income account ▼ drop-down, select Bad debts.
  5. Select Save and Close.

To create and apply a credit memo for the bad debt, please check out this link: Write off bad debt in QuickBooks Online.

 

For additional reference, I've attached a link you can use about how to handle customers showing with net-zero balances in A/R Aging report: Clear up customers with zero net balances in the Accounts Receivable Aging report.

 

Drop me a comment below if you have any other questions. I'll be happy to help you some more.

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Level 1

how to cancel out an old open invoice vs. a journal entry I made to cancel the invoice. still both show on the aging report

actually I found the solution my self.

All I had to do , go to the process of applying the payment to the invoice, and then I saw the credit was waiting to be selected to clear up the invoice.  and that was it.  

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