I am using QuickBooks Pro 2017. Many of the bills are paid by our parent company. When the parent pays the bill i make a journal entry moving the amount of the invoice from the A/P account to the Due To account. That works just fine, however the bill still shows up on the Pay Bills module. Is there any way to remove the bill from the Pay Bills section.
Note: I do not want to delete the bill, this affects the expenses
Solved! Go to Solution.
You should not be using JE for AP. The function is Enter Bill and change the radio button at the top to Vendor Credit. Now, on the expenses tab, list the Due To account. Now you can use the Pay Bills and the AP functions properly, and your reporting will work correctly. JE bypass cash vs accrual basis. You want to avoid JE for AP, AR, inventory, Sales taxes and Payroll, in QB. You affected the Math, not the function, with JE.
"How does this effect inventory?"
"This" which part?
A Bill listing inventory, puts it on hand. A Vendor Credit listing inventory, is the same as RMA or vendor return.
A JE cannot be used for inventory at all.
"I tried it and it marked a build pending"
A Build is how you show you are "Making this inhouse, from the components or bill of materials" instead of Buying it. Example:
You sell computer hardware, power supplies, etc. You also want to keep 5 systems on the shelf, completed and ready to sell, as inventory = you Build them, to show the components now in the systems were removed from available Parts to sell.
"Pending" means you didn't have enough inventory components to Make the thing you told the system you Made. Example:
A Pre-Hung Door includes a frame, a door, and 3 hinges. You cannot Build 10 Pre-Hung doors unless you have at least 30 hinges in stock.
It’s great to see you in the QuickBooks Community, klaus2930.
Thanks for joining this thread and sharing the resolution you’ve taken to remove the negative balance on the balance sheet report.
The information will also help other users who are encountering the same issue. Aside from posting questions, the Community space is the best place to share your practices using the software.
For future reference, I’m adding articles to help track vendor credits:
Reach out to me if you have additional questions about QuickBooks. Please know I’m just a few clicks away. Have a great rest of your day!
My tax accountant used a JE in AP to zero out AP for 12/31/18 (because I told her there was no AP due). The JE she posted has a debit to Office Repairs and Equipment and a credit to AP for vendor XYZ. The problem is the Pay Bills screen has a bill for vendor XYZ waiting to be paid, and I don't understand how to resolve the problem with the bill payment in the Pay Bills screen. Thank you for whatever help you can provide!
Hi there, @DZ68.
I'm here to help share information about creating a journal entry and applying it to the open bills in QuickBooks Desktop (QBDT).
When creating a journal entry in QBDT, when posting credit to accounts payable, it increases your accounts payable and posting debit to accounts payable decreases your accounts payable.
If you have an open bill and wanted to zero out the bill using a journal entry, you may need to debit to accounts payable. Once done, open the open bill and apply the credit as payment of the bill.
If you've created a journal entry debiting to Accounts Payable, you can now apply the journal entry created as a payment of the bill.
However, it would be best to consult an accounting professional for guidance before creating journal entries.
To learn more, you may check this article: Record a journal entry.
Please know that I'll be right here to help you if you have any other QuickBooks or journal entry questions, just add a post/comment below. Have a great day ahead!
The initial JE was a credit to AP, and a debit to an expense account. That was done as a way to zero out the AP balance at 12/31/18 (not carry it over), since the balance was incorrect... there was nothing actually owed at 12/31/18. That initial JE created a bill to pay in Pay Bills screen. If I were to reverse that initial JE to create another JE that has a debit to AP, as a way to create a credit to apply to the bill, when I apply the credit, the Pay Bills issue is resolved. However, the AP balance is back to where it was before the transaction to zero out the AP balance. Any thoughts?
Thanks for joining this thread, @DZ68.
Allow me to share some insights about zeroing out your AP balance.
Just to confirm, did you create a new JE or edited the existing one after reversing it? If you've created a new JE, this maybe the reason why the incorrect AP balance went back after applying the credits to the bill.
To help fix this, you'll need to delete the old JE. This way, the newly created JE will remain and it'll remove the incorrect AP balance from 12/31/2018. Here are the steps:
You can also press CTRL + Del on your keyboard to delete the old JE.
I'm also adding this article to learn more about the Accounts Payable (A/P) workflow in the program.
That's it. If you need anything else, please let me know. I'm here to help, @DZ68.
The original JE was entered on 12/31/18 (with an 8k credit to AP) as a way to zero out the balance in AP, and to keep that zero balance going forward into 2019. Since the credit to AP created a bill record of 8k waiting to be paid in the Pay Bills module, I reversed the original JE (with a debit of 8k to AP) so as to have a credit of 8k to apply to the original JE as a way to remove the original JE from Pay Bills module. Then I applied the credit, and that did remove the original bill from Pay Bills module. Then I needed to remove the JE with a debit to AP, otherwise I would have the 8k balance again going forward, so I deleted that second JE. The result was I was back where I started with the original JE, with a credit of 8k to AP waiting to be paid in the Pay Bills module. Help!
Hi Klaus2930. I have the same issue. A JE with a credit to AP and a debit to an expense was used to zero out a negative balance in AP. The JE is now on the Pay Bills screen (as if waiting to be paid), and I don't know how to get it off that module without creating another AP transaction that would recreate the negative AP balance I had before zeroing it out. Any ideas?
Hi there, @DZ68.
Thanks for getting back to us and for providing some additional details. Allow me to step in for a moment and share some information about zeroing out your Accounts Payable in QuickBooks Desktop (QBDT).
You're already in the right track! I read through your whole conversation in this thread, and I can see that the first Journal Entry (JE) you've done is for a vendor with an over payment. Since this is for an underpayment, you need to edit the first JE and reverse it same with the second one to remove it from Pay Bills module. Here's how:
1. Open the JE, then choose Accounts Payable on the Account drop-down field.
2. Enter the amount on the Debit column and the name of the Vendor.
3. In the next line, select an offset account and enter the amount under Credit column, then Save & Close.
Once done, apply it to the credit. Here's how:
1. Go to the Vendors menu at the top, then pick Pay Bills.
2. Choose the bill and click Set Credits at the bottom.
3. On the Credits tab, select the available credit and Done.
4. Hit Save & Close, then Pay Selected Bills.
I also added some sample screenshots for your guide.
That should do it. You can also check out this article and scroll to Accounts Payable for future reference: Write off customer and vendor balances.
Please let me know how it goes so I can get back to you right away. I'm always here to answer if you have any follow-up questions. Take care and have a wonderful rest of the day!
Hi FritzF. Thanks for the response. Before I try what you recommended, let me clarify a couple of things. The original JE (credit 8k to AP, and debit 8k to an expense) zeroed out the AP as of 12/31/18. So the AP, as of 12/31/18, is where I want it to be. The problem is my need to remove that original JE from the Pay Bills module. I tried a JE reversal, and when that didn't help me, I deleted the reversal. If I follow your advise (which seems like a reversal that is done within the original JE) wouldn't I wind up with a negative 8k again as the 12/31/18 balance?
You don't have to modify your journal entry, DZ68.
The original JE suggested by your Tax accountant zeroed out your negative balance to the vendor. This process increases your AP account. That is why you are seeing the JE on the Pay Bill page. You can verify this these transactions by running the Open Balance report. Right-click on the Vendor name from the Vendor Center and choose Open Balance: (Vendor name).
Then next step is to link the original JE and the credits for the vendor. Here's how:
Please let me know if you need more help by leaving a comment below.
Thank you Joyce_P. I understand your instructions. Before I try those instructions, I need to mention there are no available vendor credits to use. I assume I would need to create a credit for the full amount of the JE used to zero out the AP? And, if I create a credit, wouldn't it change the zero balance?
Thank you for getting back to the Community. Allow me to step in and provide additional information about clearing the Accounts Payable account.
I've read the thread above regarding clearing the Accounts Payable account from the prior year. Please note that credits will only show if you reverse it and debit to AP and make a credit to Expense.
I know this works from your end, but, you've mentioned that the balance is back to where it was before the transaction to zero out the balance. Many accountants don't recommend using Journal Entry for the Accounts Payable account.
You usually fix open A/P balances by creating vendor credits or paying bills. For your question above, you can try to create a bill credit and apply to the Pay bills section.
Here are the steps:
For vendor with overpayments, you can also try checking this article about writing off vendor balances using General Journal Entry:
However, before performing any steps above, It would be best to seek an accountant for expert advice. By doing so, you'll be able to ensure your books will be correct from the prior and current year.
If you want to try them out, you can try to create a backup copy which you restore anytime you need it. In case you need an additional reference, I'm adding the article I recommend on this:
Please let me know if you should have any questions for me regarding clearing the balances. The Community will always be here to help.
Thank you for joining in this thread, @HMed90!
You'll have to click Set Credits and apply your open credit to pay your unpaid bills. Allow me to help you accomplish this.
Once completed, I'm confident you'll be able to apply your open credits as payments for your bills.
In addition, here's a screenshot for your visual reference. Also, an article you can read to learn more about paying bills with credits: Pay Bills in QuickBooks Desktop.
Fill me in if you have any other questions about bills in QuickBooks Desktop. I'll be always around here in the Community to lend a hand.