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Join nowWhy is my QB creating an overdue amount for my customer when there is none. Customer is a business we have loaned money to and the loan was created as an AR account. Money was lent out several times and has all been paid back. This leaves the customer with a $0.00 balance but it has left the total amount of money leant as an Overdue balance. I also feel it is important to mention that we never created invoices for this loan. We just debited and credited the Loan account. What's going on?
I'll share some tips in handling loan to a customer, LAWojo.
The reason why the program shows an open balance even though all the loans have already been paid is that the deposit has been recorded as an account receivable. Additionally, the program will treat those deposits like an invoice and we'll see an overdue status because we recorded them using the A/R account. To fix this, we'll have to delete all those transactions then start all recording your loan using the Invoice and Receive payment option to ensure that you'll have accurate reports.
We can click each transaction, then select Delete from More option to get rid of them. Then, you can follow the steps that I've listed below to track your customer loan.
First, let's create a product/service item for the loan:
Second, we'll have to issue an invoice to the customer:
Then, we'll have to use the Receive payment to receive customer payments:
Once done, we can now enter the deposit and adjust for interest received by adding the interest amount back into the loan receivable account and posting the interest to income:
Check out this article that will in tracking customer loan according to different circumstances.
I also encourage consulting your accountant to know what's the best way of tracking your customer loan to avoid discrepancies and confusion.
In case you'll need to track all the invoices that are due on a particular day, we can pull up then customize your Transaction Detail By Account report.
I'll be right here to keep assisting if you have any other concerns or further questions about customer loans. Stay safe and healthy.
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