cancel
Showing results for 
Search instead for 
Did you mean: 
Patdrin
Level 1

A/R continues to show a negative balance

My client is a propane distributor and uses Cargas software program to process their inventory and sales. Once a month a g/l report is generated for inventory and I enter this information into QBO as a journal entry. I also make a "dummy" invoice showing the total sales. When payments are received, I post the payments to this invoice. This process is causing A/R to be negative on the balance sheet. What am I missing?

1 Comment 1
ReymondO
QuickBooks Team

A/R continues to show a negative balance

Thanks for sharing the complete details of your concern, @Patdrin.

 

It could be that you've accidentally entered the accounts receivable (A/R) on the credit side when creating the journal entry. If so, then this will create a negative amount in your A/R account. It will also makes a credit for your customer.

 

Once you record an invoice using a journal entry, the A/R should be on the debit side. This way, you don't have to create another invoice when recording the transaction.

 

You can open again the Balance Sheet report to view the transaction that's causing the issue. This way, you can edit it to correct your A/R balance.

Here's how:

 

  1. Go to Reports and open the Balance Sheet report.
  2. Modify the Report period to easily locate the transactions. Then, click the amount in Accounts Receivable to show its break down.
  3. Select the journal entry that shows a negative amount.
  4. If the A/R amount is on the CREDITS column, you can edit and enter it on the DEBIT side.
  5. Click Save and select Yes when prompted.

 jour.PNG

In addition, you can customize your reports in QuickBooks Online (QBO). This way, it would be easy for you to review your transactions. You can also memorize them to save their customization.

 

Please know that our doors are always open to help you with any QuickBooks-related concern. Just hit Reply and we'll get back to you. Stay safe.

Need to get in touch?

Contact us