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SLI
Level 2

How do I correct an incorrect Accounts Payable Balance carried over from previous years in spite of repeated general journal adjusting entries?

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.

7 Comments
Anonymous
Not applicable

How do I correct an incorrect Accounts Payable Balance carried over from previous years in spite of repeated general journal adjusting entries?

Just to ensure that it is not a dating error, also run the Balance sheet for 'all dates" - and verify that there is a discrepency between the gl account balance and the AP subledger balance (zero)
qbteachmt
Level 15

How do I correct an incorrect Accounts Payable Balance carried over from previous years in spite of repeated general journal adjusting entries?

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.

JWeinmann
Level 1

How do I correct an incorrect Accounts Payable Balance carried over from previous years in spite of repeated general journal adjusting entries?

@qbteachmt 

 

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?

BettyJaneB
QuickBooks Team

How do I correct an incorrect Accounts Payable Balance carried over from previous years in spite of repeated general journal adjusting entries?

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.

 

Here's how:

  1. From the Vendors menu, select Vendor Center.
  2. Right-click the vendor of the bill in question, and select QuickReport.
  3. Set the date of the report to All.
  4. Find and double click the bill that shows in the Pay Bills window.

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:

  1. Go to the File menu. Then hover over to  Utilities and select Rebuild Data.
  2. On the QuickBooks Information window, select OK. Follow the onscreen steps to save a backup.
  3. Let the tool repair your file. 
  4. When the tool finishes, click OK.

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!

pack67
Level 1

How do I correct an incorrect Accounts Payable Balance carried over from previous years in spite of repeated general journal adjusting entries?

I had the same problem.  I had a balance in the balance sheet but when I ran "Pay Bills" under the Vendors link nothing showed up.  I had tried to do journal entries but that did not work.

 

So I ran the "Vendor Balance Summary" report.  Picking any date it showed up all of the outstanding balances in accounts payable for that particular date.  Drilling down I could determine where the exact date and amount when the balances went awry.

 

I was then able to set credits that were actually available for the two vendors with incorrect balances and voila the balances went away.

 

  

 

  

bill1939
Level 1

How do I correct an incorrect Accounts Payable Balance carried over from previous years in spite of repeated general journal adjusting entries?

My A/P aging shows zero at the end of the month, and that agrees with my individual A/P ledgers.

However, when going to Vendor Center and selecting "Pay Bills," it shows bills to pay.  Does anyone have an answer?  Thank you.  Mine is QuickBooks Pro.

Giovann_G
QuickBooks Team

How do I correct an incorrect Accounts Payable Balance carried over from previous years in spite of repeated general journal adjusting entries?

Hi there, bill1939.

 

I know the importance of having an accurate figure on your books. I'd like to share what I know about this.

 

You may have selected the Show all bills option when you go to Pay Bills. Also, please make sure that there are no unapplied credits on your vendors. If no credit available, let's run Verify and Rebuild data to ensure that your company file is free from any possible data issues.

 

Before doing so, let's check if your QuickBooks is up-to-date to the latest release. If yes, we can start performing the troubleshooting steps.

 

These are the steps for Verify data:

 

  1. Go to the Window menu, then Close All.
  2. Select the File menu, then click Utilities.
  3. Choose Verify Data.
  4. Let the tool check your file for data issues.

 

Here's how to Rebuild data:

 

  1. Go to the File menu.
  2. Click Utilities and select Rebuild Data.
  3. On the QuickBooks Information window, select OK. Follow the onscreen steps to save a backup.
  4. Let the tool repair your file. It may take some time. QuickBooks may seem stuck, but as long as you can move your mouse, the tool is working.
  5. When the tool finishes, hit OK.

 

You can review these detailed steps here for your reference:  Verify and Rebuild Data in QuickBooks Desktop

 

If the issue persists, I'd recommend reaching out to our Support Team. They have the tools to do screen sharing and work with you to better isolate this issue.

 

In addition, feel comfortable checking these helpful materials below for more insights:

 

 

I'll be around if you need further assistance with the Pay Bills. Just click the Reply button and add any details. Have a great day.

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