Clearing Transactions from A/P Aging Report

Hello there, @MelanieS4. I'm here to ensure you'll be able to clear the transaction in your Accounts Payable Aging report. Follow along below to get this done right away.

First off, let me discuss some information about the task.

In QuickBooks Online (QBO), you can clear the payables by making a journal entry and applying it to the existing balance. This process can be a little tricky so I recommend consulting your accountant for guidance. This is to ensure that you select the correct account to avoid messing up your books. Here's how:

1. In your QBO company file, click the +New button and choose Journal Entry.
2. Next, from the Journal Entry window select the correct date.
3. Under the Account field choose Accounts Payable from the drop-down list.
4. Then, enter the amount in the Debit field.
5. Next, select the name of the vendor from the drop-down list.
6. In the second line, select the off-setting or the clearing account in the Account field. Here's how you can create one. 
7. Input the amount in the Credit column.
8. Once done, click Save & Close.

After that, you're now ready to apply the journal entry to the existing balance:

1. Navigate to the Expenses menu and choose Vendors.
2. Next, click on the vendor's name, and look for the bill to pay it.
3. Then, select the Make Payment button. When the Bill Payment window opens you'll see the journal entry under the Credits section.
4. Select the bill and the journal entry to link them.
5. Once done, click Save & Close.

Once everything is fine, you might want to check this article to serves as your guide in reconciling your accounts smoothly: Reconcile an account in QuickBooks Online.

I'd love to know how this goes. If there’s anything else you need about managing your accounts payable in QuickBooks, feel free to post a comment below. I’d be more than happy to assist you. Take care and keep safe.

Hi!

We have an accounts payable that was created as a Journal Entry.  We have also applied payments.  On our Vendor balance report the amount is correct, but on the aging summary report it is wrong and doesn't balance to the balance sheet.  We are working with QuickBooks Enterprise (desktop).  The a/p should be Zero now.

How do we clear this account?

Let me help you sort out this issue, Stevenson.

Both the Balance Sheet and the A/P Aging Report should match if the payment was applied to the correct transaction. You'll want to make sure to select the correct date of the As of date of both reports. At the same time, ensure the bill in the A/P Aging Summary report is the correct transaction where the payment is applied to so it will show in the report that it's paid and will zero out the amount.  I've added a screenshot where it shows both reports matches the amount amount:

However, if the payments doesn't still clear in your A/P Aging Summary report, drill down the transaction. You can do this by clicking the amount to trace the root cause of the issue.  If you're able to locate the discrepancy from the report, double-check it against your journal entry. I still suggest reaching out to your accountant if you're still unable to determine the problem. 

For more information on how you can fix your balance sheet, check out this article for more information: Fix A Balance Sheet That's Out Of Balance.

Moreover, learn how you can customize your data so you'll get the right data for your business when running a report. I've got this article for your reference: Customize Reports In QuickBooks Desktop.

You can always reply your comment below if you have further concerns when running reports or clearing a transaction when payment is made. The Community is always here to help you all the time.