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FaithT
Level 2

Uncleared Bill payments

I have a client that has some old bill payments that were sent out and need to be cleared out via a Journal Entry. What is the correct way to do this?

2 Comments 2
LeizylM
QuickBooks Team

Uncleared Bill payments

I'm here to help you navigate through the process and provide guidance on handling uncleared bill payments in QuickBooks Online (QBO), Faith. 

 

If it doesn't apply to any bill, you have the option to void or make a bank deposit in QBO. Otherwise, you can create a journal entry to reverse the transaction so it will be removed for this year's reconciliation. Here's how:

 

  1. Go to the + New button.
  2. Select Journal Entry.
  3. Fill out the fields to create your journal entry.
  4. Click Save and new or Save and close.

 

Before doing so, I'd recommend reaching out to your accountant before making changes to avoid messing up your transactions. If you don't have an accountant, we can help you find one through this link: Find a QuickBooks ProAdvisor.

 

Additionally, we'll share these articles to help manage your bill transactions:

 

 

Feel free to get back to us if you need further assistance with your bill payment in QuickBooks Online. The Community is always here to help you. I'm hoping for your flourishing year, Faith. Keep safe!

Rainflurry
Level 15

Uncleared Bill payments

@FaithT 

 

Are these bill payments that never cleared the bank?  Did your client reissue the payment?  How?  By entering a new bill/payment or ??? 

 

To reverse a bill payment, create a deposit and assign A/P to the deposit.  That will allow you to clear the old bill payment against the deposit the next time you reconcile.  It will also increase A/P which would be understated because of the bill payment that never cleared.  If a second bill/payment was issued, then assign the same expense account to the deposit that was used on the original bill.  That will reduce the overstated expense because the second bill/payment would have duplicated the expense.

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