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QuietEnjoyment
Level 3

invoice is paid in full, but still appears in BOTH accounts receivable & net income?

Hello, my question might be more accounting fundamentals rather than QB related. Here goes:

 

So in reviewing the cash flow statement, I noticed some amounts being subtracted out for accounts receivable. Ok, that makes sense, we want to see the cash flows only, not what will be paid in the future. 

 

I have an invoice for $750 that was paid in full using the proper "receive payments" then making the deposit to the bank account. But yet the amount is still showing in accounts receivable. Also, the money received for this invoice is showing as part of the net income. It should just be in net income if it is paid, right? What am I missing here? Can't be in both categories...or can it?? QB glitch? 

3 Comments 3
Archie_B
QuickBooks Team

invoice is paid in full, but still appears in BOTH accounts receivable & net income?

Hello there, QuietEnjoyment.

 

I'd like to share what I know about invoices and receiving payments in QuickBooks Desktop.

 

Once you've received a customer payment for an open invoice, it normally debit the Undeposited Funds account which QuickBooks set up as a default account for your payments until you deposit them to your real-life bank. This will also credit the Account Receivable since invoice are paid

 

I've added these articles for more information about the workflows and how undeposited funds account works in QuickBooks:

 

 

If you'd also like to review your transactions, you can check out this link to learn more about the different report you can use in QuickBooks Desktop: Track your cash flow in QuickBooks Desktop.

 

Let me know if your still have other questions about invoice and payments. I'll be here to answer them. Have a great day!​​​​​​​

QuietEnjoyment
Level 3

invoice is paid in full, but still appears in BOTH accounts receivable & net income?

Hi Archie. Thanks. But my original question is not answered.

 

Let me ask more specifically: On the cash flow statement, within the "adjustments to reconcile net income" that has a line for accounts receivable....what makes an entry show up there? Is it based upon dates? How do I get an invoice that is fully paid to NOT show up in AR? To be clear, I am not talking about the AR register, I am talking about THAT SPECIFIC LINE on the cash flow statement. 

 

What I can't wrap my mind around is that I have invoice that I am 100% sure are paid, but show up in AR still in the cash flow statement. I see the invoice entry there, click on it to open the invoice and see that the invoice indeed has no balance due. Yet other invoices that have been paid are not showing up in AR, which is the expected outcome. Seems completely arbitrary with what makes up that total. I attached a photo of what I mean...it's the line with (13,382.80); there are paid invoices that are in this total. And yet those same paid invoices, as they should be, are in the 17,725.99 number. Logic tells me it can't be both! 

 

 

ReymondO
QuickBooks Team

invoice is paid in full, but still appears in BOTH accounts receivable & net income?

Hey there, @QuietEnjoyment.

 

I've replicated the same steps that you've took. All of my paid invoices aren't showing in the A/R section of the Statement of Cash Flow report. 
 

There might be a data issue in your company file that's causing this behavior. I'd be glad to share with you some steps that can correct the data in your report. 

 

Let's start by updating QuickBooks Desktop (QBDT) to its latest release. This can keep your software up-to-date so you always have the latest features and fixes.

 

Here's how:

 

  1. Go to the Help menu and select Update QuickBooks Desktop.
  2. Click the Update Now tab. 
  3. Select Get Updates to start the download.
  4. When the download finishes, restart QuickBooks.
  5. Once prompted, accept the option to install the new release.

 

If you're still getting a similar result, run the Verify and Rebuild Data tools. These tools can help us identify the commonly known data issues within a company file and fix them.

 

I've also added these resources that will help you in reviewing your reports in QuickBooks:

 

 

Let me know how it goes by adding a comment down below. I'll be more than happy to provide further assistance.

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