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userdziegenf
Level 1

How does one enter a starting balance for Accounts Receivable? How do you enter transactions into Accounts Receivable if you don't want a AR Subledger? Thank you!

 
3 Comments 3
Adrian_A
Moderator

How does one enter a starting balance for Accounts Receivable? How do you enter transactions into Accounts Receivable if you don't want a AR Subledger? Thank you!

We can add an opening balance by creating a Journal Entry, userdziegenf.

 

Let me guide you with these steps:

 

  1. From the + New button, select Journal entry.
  2. Select Opening Balance Equity in the first ACCOUNT column.
  3. Enter the amount on the CREDITS field.
  4. Select accounts receivable account on the second line.
  5. Enter the same amount under the DEBITS column.
  6. Select a customer's NAME.
  7. Click  Save and close.

 

With regard to recording a transaction on the account's receivable account, QuickBooks doesn't user A/R Sub-Ledger. All transactions default to a single A/R Accounts. That explains why it needs a customer name to identify where and to whom the balance is.

 

I've also added this reference as your guide when managing Account's Receivable: Track Your Cash Flow in QuickBooks Online.

 

Feel free to get back to me if there's anything that I can help with. Keep safe!

angelacct
Level 3

How does one enter a starting balance for Accounts Receivable? How do you enter transactions into Accounts Receivable if you don't want a AR Subledger? Thank you!

Adrian_A 

In your response you wrote:


@Adrian_A wrote:

 

"With regard to recording a transaction on the account's receivable account, QuickBooks doesn't user A/R Sub-Ledger. All transactions default to a single A/R Accounts. That explains why it needs a customer name to identify where and to whom the balance is."


 

I thought you could create "Sub-Ledger" as Sub-Accounts of the main A/R Account? For example:

 

A/R - Customer A (parent account)

 >>> A/R - Customer B (and choose, is a sub-account of A/R - Customer A when setting up the account)

This way you can track amounts together or separately in Reports?

 

Sorry if I am confusing "Sub-Ledger" with "Sub-Accounts"? 

Thanks for any assistance you can offer in this matter. I really appreciate it. 

FritzF
Moderator

How does one enter a starting balance for Accounts Receivable? How do you enter transactions into Accounts Receivable if you don't want a AR Subledger? Thank you!

Thanks for joining this conversation, @angelacct.

 

Yes, you can create a sub-account to your main Accounts Receivable (A/R) account. However, once you create an invoice, it will use the default A/R account. This is why it's recommended to have one account.

 

If you have to group or divide your open payables or receivables, you can do one of the following:

 

  • Set up parent and sub-customers to group your open receivables
  • Use location tracking to group payables or receivables

 

To learn more about this, consider checking out this article for future reference: How to group Accounts Receivable or Accounts Payable account types.

 

Reach out to me in the comment section below if you have any additional concerns. I'll be here to assist. Have a great day!

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