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Level 2

accounts payable

Our company's CPA firm has asked me to make AJE for last year, a debit to RE and credit to A/P.  It seems that the ending 2018 figure that they used for A/P and the beginning 2019 A/P balance were not the same.  I began as an accountant with this company in April of last year, so I am not sure what happened prior to me.  I can't find any entries that seem to be made that affects their numbers, but they are different and I need to make my numbers match their numbers.  It is not a material amount, just over $1,500. We have many entities that are interrelated, and I have searched entries that might make up the difference, with no luck. 

Any suggestions how to accomplish this would be greatly appreciated.  I just want to begin 2020 with clean accounts that I can defend going forward.

Thanks!

3 Comments
QuickBooks Team

accounts payable

Hello there, 7150.

 

Allow me to share some insights with you. 

 

QuickBooks automatically transfers your annual profits, as calculated in the Profit and Loss, to the Retained Earnings Account at the end of each reporting period, where they add to the previous year’s ending balance.

 

You can run a Quick Report on the Accounts Payable and filter on paid status to find the entry that caused the difference.

 

Here's how:

 

  1. Go to the Company menu, then select Chart of Accounts.
  2. Click your Accounts Payable, then click the dropdown arrow beside Reports.
  3. Select QuickReport.
  4. Filter Journal Entry as the transaction types and Paid Status (Open).
  5. Customize the report to show the rest of the display, so that you'll see all the details from the transaction: Source NameNameAccount SplitsDebits, and Credits.

 

Feel free to visit this link to view our latest resources that can help your business during these tough times: Small Business Help

 

Get back to me if you have any other questions. I'm always here to help. Wishing you a good one!

Level 2

accounts payable

Thank you for the response to my question.

Am I understanding correctly, I do not need to make an adjusting entry at Year End to roll the retained earnings in QuickBooks?  When I followed your instructions for looking at the QuickReport, there are no Journal Entries to Accounts Payable, only Bills.

QuickBooks Team

accounts payable

Hello there, 7150,

 

Let me clear things out for you. Yes, you don't need to make a journal entry to adjust your income and expenses at year-end. QuickBooks Desktop does this for you in preparation for the coming year.

 

You'll want to pull up the Retained Earnings account to see all the transactions. These adjustments are tagged as Closing Entry which is not a real transaction in QuickBooks.

 

I'm glad to show you how to open the report:

  1. Go to the Lists menu, then choose Chart of Accounts.
  2. Double click Retained Earnings to open it.

Check out the Close your books in QuickBooks Desktop for more details and instructions about year-end adjustments.

 

Stay in touch if there's anything else I can help you with. Just tag my name and I'll get back to you.

 

Thank you and stay safe!

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