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Community Contributor **

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?

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Best answer 01-16-2019

Accepted Solutions
Established Community Backer ***

Re: 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.

9 Comments
QuickBooks Team

Re: 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!

Established Community Backer ***

Re: 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. 

Community Contributor **

Re: Accounts payable in General Journal

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

Community Contributor **

Re: 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.

Established Community Backer ***

Re: 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.

Community Contributor **

Re: 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

Community Contributor **

Re: Accounts payable in General Journal

 
Established Community Backer ***

Re: 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.

Not applicable

Re: 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

 

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