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Highlighted
Level 1

Accounts payable in General Journal

I inherited a QuickBooks data file from a prior bookkeeper who did not know what she was doing. 

 

One of the problems I inherited is a balance in Accounts Payable on my General Ledger, from a prior year, that does not match my subsidiary ledger, and I need to reverse.  There are no open vendor invoices associated with this balance that I can reverse.  

 

Everything I have attempted to clear this balance requires me to enter a vendor, which I do not want to do!

 

How do I write this off without affecting my subsidiary ledger?

Solved
Best answer January 16, 2019

Best Answers
Highlighted
Level 15

Accounts payable in General Journal

"and as I said my open payables is zero while my General ledger shows a balance of $42000"

 

Certain reports are based on Transaction Type. For instance, if I open Pay Bills, I do not see Item Receipts listed here, because they are not yet Bills; but they affect AP.

 

You can run a Quick Report on the AP and filter on Paid Status = Open only.

 

You can run AP Aging Detail.

 

You can right click AP, run a Quick Report, filter on only Journal Entry as the transaction types.

 

Then Customize the report to show the rest of the details, so that you see all the details from the transaction: Source Name, Name, Account Splits, Debits and Credits.

 

No one on the internet can help you make One Entry that fixes this. We cannot even confirm if there is any one Entry that makes all of this go away. I call this playing Sherlock Holmes; until you know exactly what went wrong and how, you cannot begin to understand how to fix it or offset it.

 

Other than, Fixing the entries as I noted; make the right Type, and then all the QB tools and reporting work just fine for you.

View solution in original post

21 Comments 21
Highlighted
Anonymous
Not applicable

Accounts payable in General Journal

Thanks for getting in touch with us today, PerryM,

 

I can share some insights about correcting your vendor balances.

 

Vendor balances are affected by your bills, credits and how your payments are applied. For that reason, any adjustments related to Accounts Payable requires a adding a specific vendor. This way you're able to accurately correct or offset the affected vendor.

 

In QuickBooks, we have several ways to correct your vendor balances. However, before trying these solutions, it would be best to consult an accounting professional to get the best advice for your books.

 

You can create a General Journal Entry to write off the amount (Company>Make General Journal Entries).


For vendor with over payment:

  1. In the Account field, select Accounts Payable from the drop down list.
  2. Enter the amount under the Credit column.
  3. In the Name column, select the vendor name.
  4. In the next line, select the offset account and enter the amount under Debit column.

For vendor with underpayment

  1. In the Account field, choose Accounts Payable.
  2. Enter the amount under Debit column, tab to Name column and choose the vendor name from the drop down list.
  3. In the next line, select the offset account and enter the amount under Credit column.
  4. Select Save & Close.

That should help you circumvent the issue, PerryM. You can also check this article for more options on how to correct the vendor balance: Write off customer and vendor balances

 

Please feel free to get back to me if you have any more questions about the process. I'll be glad to work with you again. Have a good day!

Highlighted
Anonymous
Not applicable

Accounts payable in General Journal

This is a common problem created by using Journal Entries  in places they shouldn't be used (which in QB is pretty much everywhere).  The mistake is that in Journal Entry it is possible to omit a vendor name:  result is the transaction goes into the balance sheet but cannot be processed in the sub-ledger leading to the imbalance

In this case it takes two wrongs to make a right - the difference between the subledger grand total and the Balance sheet amount has to be removed by the same method.  The posting is easy but the real problem is trying to figure out where the other side of this adjustment goes.  Likely it is an expense adjustment, but it could be an asset or inventory. 

Highlighted
Level 1

Accounts payable in General Journal

There is no vendor balance to be written off, that is the problem

Highlighted
Level 1

Accounts payable in General Journal

Mike,what you suggest is exactly what I have been trying to do. 

 

The G/L side of the transaction is easy, but QuickBooks will not allow me to post a General Journal entry without a vendor name. which would then create a vendor balance that doesn't exist.

Highlighted
Level 15

Accounts payable in General Journal

This person using the wrong tool already had to put a Name in the entry. They made some sort of Generic name, if there is no Actual Vendor name in that entry.

 

You can Replace that JE with the proper Vendor transaction type of Bill or Vendor Credit or Bill Payment Check (if they posted to Banking in that JE) and then Delete that JE entirely.

 

Undo their error, make the financial data match what is was but using the Proper and specific transaction. Then, address that this still shows Unpaid, but using the current timeframe and the right type of transaction.

 

If they Debit AP and Banking (or Credit Card account) Credit, then that is a Bill Payment.

If they Debit AP and Credit something other than a payment account (banking or credit card), that is the Vendor Bill Credit (Return).

If they Credit AP and Debit something such as Supplies Expense, that is a Vendor Bill.

 

Replace the JE and then get on with using the right functions.

Highlighted
Level 1

Accounts payable in General Journal

Thank you for your suggestion, and it is the right one if it were just one or two entries. 

 

But this error is a combination of errors, made over a 5 year period.  It would be impossible to identify all the errors, and as I said my open payables is zero while my General ledger shows a balance of $42000

Highlighted
Level 1

Accounts payable in General Journal

 
Highlighted
Level 15

Accounts payable in General Journal

"and as I said my open payables is zero while my General ledger shows a balance of $42000"

 

Certain reports are based on Transaction Type. For instance, if I open Pay Bills, I do not see Item Receipts listed here, because they are not yet Bills; but they affect AP.

 

You can run a Quick Report on the AP and filter on Paid Status = Open only.

 

You can run AP Aging Detail.

 

You can right click AP, run a Quick Report, filter on only Journal Entry as the transaction types.

 

Then Customize the report to show the rest of the details, so that you see all the details from the transaction: Source Name, Name, Account Splits, Debits and Credits.

 

No one on the internet can help you make One Entry that fixes this. We cannot even confirm if there is any one Entry that makes all of this go away. I call this playing Sherlock Holmes; until you know exactly what went wrong and how, you cannot begin to understand how to fix it or offset it.

 

Other than, Fixing the entries as I noted; make the right Type, and then all the QB tools and reporting work just fine for you.

View solution in original post

Highlighted
Level 1

Accounts payable in General Journal

I actually had a similar problem and found that the person before had used a JE to AP and chose a customer or else “other” type person instead of a vendor. If you run AP aging and customize the report filter by getting all names instead of vendor names, you may be able to see it. Just a suggestion!

The only other suggestion is to run an AP report or balance sheet and click on AP change the dates at the top to show you 1/1/1990 thru 12/31:2999 (or equally crazy) and make sure someone didn’t post a bill or payment into a future period that you just aren’t seeing because you are using default time frames. And or sort by transaction type and see if you can find all the JE’s that are hitting AP

 

Highlighted
Level 1

Accounts payable in General Journal

I have a similar problem.  I found that my error occurred in a journal entry from 1999 from "the condense process".  QB will not let me adjust this journal entry nor will it let me create a new journal entry to accounts payable without a vendor.  When I run the vendor balance this outstanding amount is listed under "no name".  Do you have any suggestions on how to fix this?

Highlighted
QuickBooks Team

Accounts payable in General Journal

Good to see you here in the Community, @kmottola.

 

The vendor's name is one of the requirements in creating a Journal Entry( JE) on the desktop so that you'll not receive any error. 

 

In regards to the Vendor Balance report, I was unable to replicate the same result. Instead, I see all of the names with their respective details. That being said, it seems like your company file is affected by data integrity issues.

 

A quick and easy way to resolve this is to run the Verify/Rebuild process. With this, QuickBooks will be able to self-identify the cause of the issue and apply the necessary countermeasures to resolve the problem.

 

Here's how: 

 

  1. Go to File, then choose Utilities.
  2. Select Verify Data. This may take some time.
  3. If a message pop up says that Your data has lost integrity, indicate there is data damage in the file. 

 

Let's Rebuild the data to fully relieved to the problem. Before doing the rebuild process make sure that you've created a company back up file to ensure that you have a secured copy of your company file before any changes are made to it.

 

To create a company back up file, you can browse this article: Back up your QuickBooks Desktop company file.

 

Once done, here's how to rebuild the data: 

 

  1. Choose File, then select Utilities.
  2. Click Rebuild Data, then press OK
  3. Hit OK to confirm.

 

For additional guidance, you can check this article: Verify and Rebuild Data in QuickBooks Desktop.

 

Let me know if you have further questions. I'll be here to answer them. 

Highlighted
Level 1

Accounts payable in General Journal

Thank you Michelle.  I followed the steps you suggested.  One error was fixed but the A/P balance is still there and still listed as "No Name".  The original journal entry does not list any vendor names because it was created using the Condense Data Utility.  QuickBooks states that this type of transaction cannot be edited.

 

 

Highlighted
Moderator

Accounts payable in General Journal

Thanks for the screenshot, kmottola.

 

As a workaround, you'll want to create a dummy vendor and use it in the journal entry. Then, link each open balance to the credit transaction so they will not be reported on the A/P Aging Detail report.

 

Let me share this link in case you want to learn how to write off customer and vendor balances in QuickBooks Desktop.

 

Keep us posted if you have further questions. We'll be here to help.

Highlighted
Level 1

Accounts payable in General Journal

How do I link the past transactions to the dummy vendor account?  QuickBooks will not let me edit the journal entries created by the condense data utility.  It is my understanding that the condense utility deletes all of the transactions for a year and condenses them into 1 journal entry.  So if I cannot edit the journal entry, how do I link the transaction to the dummy vendor?

Highlighted
QuickBooks Team

Accounts payable in General Journal

You're right, Kmottola. You're unable to change or edit the entries created after condensing the company.

 

You can open the old file (before condensing), link the past transactions to the dummy vendor, then condense the data. This way, the Accounts Payable figure will be fixed.

 

Get back to this thread if you need further help with this. 

Highlighted
Level 1

Accounts payable in General Journal

The condense utility was used from 1996 to 2008.  No one know where those old files are located.  There must be a way for us to authorize the software to make this entry without a vendor in the current file since there is a balance listed without a vendor.

Highlighted
QuickBooks Team

Accounts payable in General Journal

Good Afternoon, @kmottola.

 

I'm glad to provide some insight into your General Journal Entries.

 

While the option is available to find the old non-condensed files and attach the past transactions to a "dummy" vendor, the software can't be altered to make the entry without a vendor. QuickBooks Desktop requires you to connect the transactions to a vendor to clear the balance.

 

If you have any other questions or concerns, please know I'm only a post away.

Highlighted
Level 1

Accounts payable in General Journal

The old files are no longer available.  Does that mean that we are stuck with this amount in our account payables balance?  The other solution seems to be to make a journal entry to accounts payable and use a dummy vendor but then we are stuck with a negative vendor balance.  Either way, we have something on our books that is not accurate that Quickbooks will not let us correct.

Highlighted
Moderator

Accounts payable in General Journal

Hello there, kmottola,

 

You're right, you'll want to make a journal entry to correct it. However, you need assistance from your accountant to perform this. This is to make sure the credit and debit accounts used are correct.

 

Check this article for reference: Create a journal entry in QuickBooks Desktop.

 

Let me know if you need anything else.

Highlighted
Level 1

Accounts payable in General Journal

I am an accountant.  So I understand journal entries.  However, a journal entry did not work.  I created a dummy vendor account and used it in the journal entry but our cash basis balance sheet did not change.  Our new tax accountant does not understand why we can't write this off instead of carrying this incorrect balance for the past 20 years.  I thought I would try reaching out to the community again this year in the hopes that maybe something had changed in the software that would let us correct this problem.  Thanks to everyone for your ideas:)

 

Highlighted
Level 1

Accounts payable in General Journal

Hello, I have been reading this feed and was hoping you could help, or correct me if I am wrong.  I tried getting help online thru QB's but to no avail.

For year-end purposes, the CPA has issued AJE that affects the A/P balance on the GL so that

what I have on my QB's Trial Balance matches with the CPA's trial balance.

The problem is when I post the AJE it corrects the A/P balance but shows up in my "checks to be paid" window and affects my cash which is incorrect. How do I fix this?  The entries are as follows:

                                                               DEBIT                                             CREDIT

Accounts Payable

 

$4077

Misc. Expense

$4077

 

ALSO 

Unrealized Gains

$423

 

Prepaid Insurance

$69

 

Accounts Payable

 

$34

Retained Earnings

 

$383

Supplies

 

$75

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