Accounts Receivable is all Messed Up

Thanks for joining the Community, skyemb.

I've done some research in other threads and can confirm some users with negative Accounts Receivable balances have identified it as being caused by overpayments and credits on customer profiles.

I'd recommend checking this in your books.

Here's how:

1. In the left navigation bar, go to Sales, then Customers.
2. Find a customer you want to check and click their display name.
3. On their profile, review your Open balance. If they have overpayments/credits, you'll see a negative amount.

If this is what's causing the negative balance in your A/R account, you'll want to handle their overpayment(s) and credit(s) appropriately.

Before taking any steps to fix the negative balance, I'd recommend working with an accounting professional to identify what's causing it. If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

If there's any questions, I'm just a post away. Have a great day!

Thank you!
It appears so... but the largest culprit is a customer titled "Unmatched," with a negative opening balance of more than the negative number in A/R...

Not really sure what to do with that either! Agh!

No worries, @skyemb. I've got your back to help handle with your customer showing a negative opening balance.

There are two ways to remove the customer's negative balance in QuickBooks Online. You can either issue a refund or show there is a Sale to which it is applied.

Here's how to show a sale:

1. Log in to your QBO account.
2. Select + New in the left panel and click Receive payment.
3. Choose a customer, then select the invoice and the credit.
4. Lastly, click Save and Close.

To know more about the detailed process and how overpayment works in QuickBooks Online, please review this resource: Handle a customer credit or overpayment in QuickBooks Online.

You may also read this reference that'll allow you to share a document showing all business activities made by a certain customer: Create and Send Customer Statements in QuickBooks Online.

If there's anything else that I can help you with aside from understanding the negative balance of your customer, please let me know the comments below. I'll be here ready to lend a helping hand. Have a good one!

That helps a ton!! I was able to clear those up, but do you know what might cause the "Unmatched" customer and what might need to be done to resolve that?

Hello there, @skyemb.

I appreciate you coming back to the thread and for your patience about this matter. You'd be glad to know that I can share the possible reason for this issue and and a way to fix it.

To start with, the possible reason why there's a customer that's "Unmatched" is due to payments that wasn't link to the customer's invoice. So, when recording a deposit we need to make we are following the right workflow.

On the other hand, we have to link the deposit to the invoice for the resolution of this concern. Let me guide you through the process.

Here's how:

Step 1: Find and edit the deposit in your bank register.
 

1. Go to the Accounting tab, then select Chart of accounts.
2. Locate the account you deposited the payment to and select View register.
3. select Edit.
4. From the Add funds to this deposit section, find the deposit.
5. Click the Received From dropdown, and select the customer.
6. Tap the Account dropdown. Choose Accounts Receivable.
7. Then, select Save and Close.

Step 2: Apply the deposit entry as an invoice payment
 

1. Click on + New and choose Receive payment.
2. Select the Customer from the dropdown.
3. From the Payment date field, enter the day you received the payment.
4. In the Outstanding Transactions section, select the invoice you need to mark as paid.
5. Under Credits, select the deposit.
6. Then, select Save and Close.

If you have clarification, you can refer to this article: How to link a bank deposit to an invoice

Additionally, you might also want to learn about recording and making bank deposits in QuickBooks Online

Just in case you're all good and ready to match your bank and credit card statements, you can always reconcile an account in QuickBooks Online.

I'll be here if you have clarification about how to manage your invoice payments or if you need anything else. Take care of yourself always!