When I do a Quick Report of my (all dates) Accounts Payable, it shows an ending balance of zero. Also on my Vendor Balance Detail Report, there are no open balances. However, on my Balance Sheet for this year, it shows an Accounts Payable balance (in error).
How do I remove this incorrect A/P balance from my Balance Sheet?
Note: This balance has been being carried over for years. I am just finally trying to have it removed to show the correct info on my Balance Sheet.
These are often the Cause of these errors: "in spite of repeated general journal adjusting entries"
JE to AR and AP is not solving anything and often makes it worse.
Vendor Balances are affected by Vendor Bills, Vendor Bills changed to show they are a refund/return/Credit, and the Pay Bills function so that you can link them to each other. JE bypasses Cash Vs Accrual Basis, for one thing. So, many reports will show the JE, when the Bill would never have been seen on cash basis reporting, because the program knows how to manage by Transaction Type = Bill and Bill Credit.
There is no AP Subledger; there is a Virtual Perspective = by using Names on the transactions, you can run reports By Name. If someone tries to manage AP by a subaccount structure, that is going to present its own issues.
A JE that "Credits" AP should be replaced by a Vendor Bill = positives on the bill will be Debits to accounts used as Expense entries and the Credit is to AP by virtue of the use of Bill as the transaction type.
A JE that "Debits" AP would be replaced with a Vendor Credit, in that the positives on the Bill Credit will Credit the accounts listed and the Debit AP value is put there by the transaction.
All of this reports properly for cash vs accrual basis, and allows you to apply credits and bills to clear AP. For instance, when you run an AP Aging Summary report, any name on there showing a Total = 0, should not be on the report at all. That is the "math of 0" but all of these transactions are Unapplied to each other.
So, then how do i link them to eachother? Even if the bill isnt showing up in the "pay bills". i issued a credit to get rid of a bill so the math is canceling them out but theyre not linked so how do i link them?
Thanks for joining us here, @JWeinmann.
If bills aren't showing in the Pay Bills window, check if there are available credits (from unapplied bill payments, recorded credits, or journal entries to the Accounts Payable account) that should be applied to those bills. Another possible issue is a damaged data.
Before proceeding with the recommended solutions below, utilize the Vendor QuickReports to verify if the bill showing as unpaid is actually paid.
If the bill was paid, select History (or press Ctrl+H) to see the details of how it was paid. If payments associated with the bill are valid, I recommend applying the credits to the future bill. If not, you may delete the payment and link the bill to the correct credit.
However, if the bill is still not showing up, try to verify and rebuild your data to determine if the issue is data related.
To do that:
To give you more details about this process, please refer to this link: Resolve data damage with your QuickBooks Desktop company file.
Just in case you need reference in recording bills in QuickBooks, l'm adding these articles here:
Let me know if you have any other concerns. I'll be around to help you out. Have a good one!