Correction of Overstated Sales Revenue from Duplicate Payment in Prior Year
I started my job in March 2021, thus inheriting the books for this company. I have since found that there was an erroneously duplicated payment from 2019, which has obviously been closed out now. It has caused Sales/RE for 2019 to be overstated by an insignificant amount really (only $500.00),but what is really annoying is that this customer's account looks like they are ahead on their payments, and I continuously have $500.00 of revenue outstanding on my bank rec. These books are cash basis.
Can someone lend some guidance because I have read here that adjusting RE in not advisable, but I don't know how else to really fix it unless I create a credit memo with a negative balance or something strange like that, and I'm trying to avoid making a nightmare of a paper-trail trying to figure out what will work.
I appreciate the detailed information that you shared regarding your concern with making corrections for overstated sales revenue from duplicate payments. I'd like to make sure that you can keep your records accurate.
You can void one of the payments and put a memo on it stating that it was a duplicate. This way, QuickBooks will create an adjusting entry for the current year. Creating a Journal Entry will also work in this case since these transactions are from the prior year.
However, to ensure the best course of action for your business, I'd recommend reaching out to your accountant. They'll be able to provide you the steps to sort this matter out.