Journal Entry produces Overdue

Amycao · ‎January 12, 2022

Hi there ,

I paid $16680.01 for warehouse insurance in Feb.2021 for Vendor-A
I used Expense function to record this payment.
the Transaction Journal of the expense recorded as
Dr: Accounts Payable-Vendor A
Cr:Bank

As the same time ,I used reccuring transactions to distribute the $16680.01 for 12 months as warehouse expense.
the Journal Entry is :
Dr: warehouse insurance expense 1390
Cr: Accounts payable-Vendor A 1390

Now , I've noticed that it turns out 139000 overdue under Vendor-A for the past 10 months .
Which means my Reccuring transactions does not set off against my previous Expense Transaction Journal?
my reccuring transactions produced 139000 overdue under Vendor A .
How can I fix it .

ReymondO · ‎January 13, 2022

Hi there, @Amycao.

Thank you for providing us with the details and adding a screenshot of your concern in QuickBooks.

The overdue amount from your vendor's open balance came from the recurring journal entry you've made. Since you're using Accounts Payable (A/P), the system will automatically take that as a liability to your vendor. This is the reason why your overdue under Vendor A is $139,000.

Moreover, using this entry won't offset the amount you've paid for the expense.

If you want to properly record this transaction into QuickBooks, I'd recommend reaching out to your accountant. That way, we can ensure that your books are accurate.

For now, you can delete the recurring entries you've made and start a new one instead.

To know when to use bills, checks, and expenses in QuickBooks Online, check this article here.

If you have more questions, please feel free to leave a comment below. We'll get back to you as soon as we can.

Amycao · ‎January 18, 2022

Hi there
I just need to know how to do offset in this case
can you share more information
Thanks

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