Clearing Old Receivables Balances

I'll guide you in clearing the receivables, T_Brunt.

Linking the journal entry to the invoice will help reduce the remaining customer balance. But before you can do this, you'll want to make sure that the affected account of the journal entry is Accounts Receivable. This way, the amount will show how once you apply it to the invoice. Here's how:

1. Go to the Lists menu.
2. Choose Chart of Accounts, then locate the account holding the journal entry.
3. Open the transaction, then make sure that the affected account is Accounts Receivable.
4. Click Save & Close when you're done.
5. Go to the Customers menu, then select Receive Payments.
6. Pick a customer from the Received from drop-down menu.
   Click the Discounts and Credits icon, then select the journal entry in the Available Credits section,
7. Hit Done, then select Yes if you see a prompt to confirm the transfer. 
8. Select Save & Close.

I'm also adding this article to help manage your credit memo or refund checks in QuickBooks Desktop: Give your customer a credit or refund.

Visit the Community again if you need additional assistance in dealing with your other customer transactions. Looking forward to answering more questions from you. Have a great day!

I tried the steps provided and it didn't work. I'm not sure the AR account I need is active. It's listed under Pharmacy Customer Other but I don't see that under a code on the COA.

Hi there, @T_Brunt.

I appreciate you for trying out the steps that my colleague provided and for providing some updates. I'm here to add some information that can help you clear your receivables.

The account receivable used may be inactive. That's why credit wont show. If so, it will create a journal entry then QuickBooks will move it to another account while the remaining transaction will stay in the financial report.

Clearing Accounts Receivable (A/R) can be a little tricky. I'd recommend reaching out to your accountant to ensure that everything is recorded accurately and to avoid messing up your accounting data.

If you're not affiliated with one, you can utilize our Find an Accountant tool to look for one in your area. 

For more details about writing off vendor balances, feel free to read this article: Write off customer and vendor balances. 

Moreover, I’ve added this helpful resource for future reference in case you’ll want to write off bad debt in QBDT: Write off bad debt in QuickBooks Desktop. 

Feel free to keep me posted on your progress with clearing off balances in QuickBooks Desktop, or if you need anything else with QBDT-related tasks. I'm determined to help you succeed. Keep safe always.