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sdonohoo
Level 2

AJE to clear A/R for cash basis client not posting

I am attempting to zero out an erroneous A/R credit balance for a cash basis organization.  I try to make an adjusting entry to debit A/R and credit sales, and it DOES post, but the entry and its effect on the balance sheet does not show up when I run any cash basis reports.  What am I doing wrong? ? 

Solved
Best answer September 24, 2020

Best Answers
IamjuViel
QuickBooks Team

AJE to clear A/R for cash basis client not posting

I appreciate the information you've shared, @sdonohoo.

 

Let's open the adjusting journal entry you've created and review its details. Make sure that the AJE reflects the accurate date and accounts for them to be included in your financial statement.  

 

If the two accounts that you're using are set up like A/R or A/P type accounts and the transactions are not "paid" or matched off, then it won't show up on a cash/accrual basis profit and loss statement. Also, if an A/R or A/P account is in the first line of the journal entry, they will not post correctly to those sub-ledgers and therefore cause problems on a cash/accrual basis report.

 

Once completed, you can run the Adjusted Trial Balance report. It displays the unadjusted balances, adjustments, and adjusted balances as of the last calendar day for the specified date range. Any adjustments entered before the last calendar day are calculated as part of the unadjusted balance.

 

Here's how:

  1. Go to the Report menu.
  2. Choose the Report Center.
  3. From the Search Box, enter the Adjusted Trial Balance report.
  4. Click the Run icon
  5. Set the Date Range of the report and its Report Basis

Also, I've added these articles to learn more ways on how you can get the most out of the available reports in QuickBooks:

Get back to us here if you have other questions about generating financial reports in QuickBooks. I'm always here to help.

View solution in original post

13 Comments 13
Rea_M
QuickBooks Team

AJE to clear A/R for cash basis client not posting

You may have run the cash basis report that doesn't cover the posting date of the adjusting journal entry, @sdonohoo. That's why you're unable to see the entry and its effect on the balance sheet on any report you've pulled up. 

 

The report date plays a great impact in your financial data. With this, you need to pull up a cash basis report that covers the adjusting journal entry's posting date. Let me guide you how.

  1. Go to the Reports menu.
  2. Select Company & Financial, then choose any report you want (i.e. Profit & Loss).
  3. In the Dates field, choose Custom.
  4. Manually input the From and To dates.
  5. Click Refresh.

 

I've attached a screenshot below that shows the last three steps.

 

You can customize your reports to filter the data you need. From there, you can update the data, add or delete columns, remove information on the header/footer, and even personalize the font and style of the report. To learn more about this, kindly check out  this article: Customize reports in QuickBooks Desktop. It also includes related articles about the basic report details in QuickBooks Desktop (QBDT).

 

Additionally, here's an article that'll guide you in resolving A/R issues on your cash basis reports: Resolve AR on the cash basis Balance Sheet with journal entries. It also contains information about removing Accounts Payable on the cash basis Balance Sheet.

 

Please let me know if you have other concerns. I'm just around to help. Take care always.

sdonohoo
Level 2

AJE to clear A/R for cash basis client not posting

Thank you for your response.  I am using the working trial balance for calendar year 2019 and made the AJE for 12/31/19.  The AJE's impact on the AR balance is not showing up in either the working trial balance or a balance sheet report for 2019.  I am basically following the exact process that this article recommends: https://quickbooks.intuit.com/learn-support/en-us/journal-entries/resolve-ar-or-ap-on-the-cash-basis...

 

I tried the chat help function, but the guy I chatted with tried to tell me that no AR entries are going to show up on a cash basis report.  

IamjuViel
QuickBooks Team

AJE to clear A/R for cash basis client not posting

I appreciate the information you've shared, @sdonohoo.

 

Let's open the adjusting journal entry you've created and review its details. Make sure that the AJE reflects the accurate date and accounts for them to be included in your financial statement.  

 

If the two accounts that you're using are set up like A/R or A/P type accounts and the transactions are not "paid" or matched off, then it won't show up on a cash/accrual basis profit and loss statement. Also, if an A/R or A/P account is in the first line of the journal entry, they will not post correctly to those sub-ledgers and therefore cause problems on a cash/accrual basis report.

 

Once completed, you can run the Adjusted Trial Balance report. It displays the unadjusted balances, adjustments, and adjusted balances as of the last calendar day for the specified date range. Any adjustments entered before the last calendar day are calculated as part of the unadjusted balance.

 

Here's how:

  1. Go to the Report menu.
  2. Choose the Report Center.
  3. From the Search Box, enter the Adjusted Trial Balance report.
  4. Click the Run icon
  5. Set the Date Range of the report and its Report Basis

Also, I've added these articles to learn more ways on how you can get the most out of the available reports in QuickBooks:

Get back to us here if you have other questions about generating financial reports in QuickBooks. I'm always here to help.

sdonohoo
Level 2

AJE to clear A/R for cash basis client not posting

Oh my gosh, that worked!  Thank you!  I was so stumped.

 

The problem was that the A/R adjustment was the first line of the entry.  After I reversed the order of the accounts on the entry and put A/R on the second line, the effect of the AJE was finally showing up!  Why would the order of the accounts on the entry make a difference? 

Mark_R
QuickBooks Team

AJE to clear A/R for cash basis client not posting

I'm happy to know that the information shared by my colleague above worked, @sdonohoo.

 

QuickBooks list the accounts for journal entries is in this order: asset, liability, equity, revenue, expense. The journal is a chronological record, where entries accumulate in the order they occur.

 

Also, when filling in a journal, there are some rules you need to follow to improve your journal entry posting. Below are the best formats when recording journal entries:

 

  • Include the date of when the transaction occurred.
  • The debit account title always comes first and on the left.
  • The credit account title always comes after all debit titles are entered, and on the right.
  • The title of the credit accounts will be indented below the debit accounts.
  • You will have at least one debit (possibly more).
  • You will always have at least one credit (possibly more).
  • The dollar value of the debits must equal the dollar value of the credits or else the equation will go out of balance.
  • Write a description after each journal entry.
  • Skip a space after the description before starting the next journal.

As always, feel free to visit our QuickBooks Community help website if you need tips and related articles in the future.

 

Visit our Community forums again if you have other questions with QuickBooks Desktop. I'm always here to help. Have a wonderful day!

Btrimm
Level 1

AJE to clear A/R for cash basis client not posting

How were you able to put an A/R entry on the second line of a journal entry.  When I attempt to do the same in my QuickBooks, I get a message saying that A/R entries must have the A/R account on the first line.  

MichelleBh
Moderator

AJE to clear A/R for cash basis client not posting

Creating a Journal Entry (JE) with the Accounts Receivable (A/R) on the second line is my focus here, Btrimm.

 

I'll ensure that you can save the JE with an A/R entry on the second line. Thus, you can correct the client's balances in QuickBooks Desktop (QBDT). 

 

There are many ways how to create a JE in QBDT, depending on the scenario. With this, I recommend visiting this article to find out the complete instructions: What are accounts receivable?

 

Furthermore, do I know what this JE you have created is used for? Any information will help me provide the best solution. 

 

I also recommend contacting an accountant. They can help you decide which account to choose and manage this situation that fits your business.

 

Further, check out these articles below on how to revert, edit and fix some issues in JE in QuickBooks: 

 

 

Swing by here again if you have other questions or concerns about JE's. I'm always on your back. Take care, Btrimm

leigh18
Level 2

AJE to clear A/R for cash basis client not posting

I am attempting to make an journal entry:

Misc Expense      Credit 40.72

Accounts Receivable     Debit 40.72

 

I cannot save it without putting in a customer name.  I need to adjust the GL balance but not adjust and of the customer balances.

ZackE
QuickBooks Team

AJE to clear A/R for cash basis client not posting

Thanks for joining this thread, leigh18.
 

The reason you're unable to save your journal entry is because a customer is required for these types of records.
 

If you need to do something with journal entries, but aren't sure how to accomplish it, I'd recommend working with an accounting professional. 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.
 

I've also included a detailed resource about working with journal entries which may come in handy moving forward: Create a journal entry

 

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

leigh18
Level 2

AJE to clear A/R for cash basis client not posting

The General Ledger does not balance with the A/R Aging Summary at the end of 2021.  I need to adjust that to balance but it is NOT customer specific, therefore selecting a random customer would make the issue worse.

 

I need to adjust the GL Accounts Receivable account WITHOUT effecting a customer account.

asccounting
Level 1

AJE to clear A/R for cash basis client not posting

Has anyone figured this out?

 

ReymondO
QuickBooks Team

AJE to clear A/R for cash basis client not posting

Hi there, @asccounting.

 

Thanks for joining the thread. 

 

Can you help me verify the issue you're referring to in this thread? Any further details would be much appreciated.

 

You can add your details in this comment section and we'll get back to you. Have a good one. 

carswo
Level 1

AJE to clear A/R for cash basis client not posting

I am posting Journal Entries and QB will not allow me to post accounts receivables?

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