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kvngrffn
Level 2

Imported Journal Entries - A/R Credits Causing Issues

We import our A/R through the journal entry import method.  Because our external system can not import client detail to QBO, all A/R items are imported in a J/E under one client name. They are imported as individual line items in a weekly import.  Normally this works without issue.  This week, for the first time, we are importing an invoice credit as a line item.  The import looks like this (Note each line item references an individual invoice/customer record from our originating system):
Journal Entry Showing A/R Section

The problem we are seeing is that when we attempt to receive payment on some of those invoices, QBO appears to be arbitrarily applying the credit amount to unrelated invoices.  I am assuming that this is because all the items are imported under one 'Customer Name' because of our system limitations. Because of this error, we are only seeing the following items available to receive payment to:

Receive Payment Items Missing

The missing items, plus the amount showing as paid on the first item in J/E #53 are equal to the credit amount from our import. 

 

The problem is, the credit amount needs to be applied against a different A/R item, from a previous J/E.  Additionally, because of the error, we are unable to apply payment to the proper line times to keep the QBO line items in synch with our external A/R system.

 

How do we process the credit amount across the original J/E entry from an earlier period (which still shows as unpaid, and will still show a balance due after the credit)?  We expect payment for the remainder of that invoice, post credit, at any time. And we will need to be able to close out that line item at that time.

 

Or, how do we have the system ignore the credit amount in regards to the current J/E period so that we can process our incoming payments correctly for this period?  This would also need us to be able to apply the credit appropriately in a separate process.

 

Thank you for your ideas!

6 Comments
MarsStephanieL
QuickBooks Team

Imported Journal Entries - A/R Credits Causing Issues

I can help you turn off the auto-apply credit feature in QuickBooks Online, @kvngrffn.

 

You can turn it off in the Settings so that you can apply credits to specific invoices. Once done, delete and recreate the journal entries.

 

Here's how to turn off the auto-apply credit feature:
 

  1. Navigate to the Settings and click on Account and settings.
  2. Select the Advanced tab.
  3. Go to the  Automation section and click Edit or the Pencil icon.
  4. Tick the radio button for the Automatically apply credits.
  5. Select Save and Done.

 

This is how it looks like in the Account and settings menu:
 

 

To know more details about this topic, you can check out this article: Create and apply credit memos or delayed credits in QuickBooks Online.

 

I've also included this article that may help you  in the future about tracking specific aspects of your sales in QuickBooks Online: Run reports in QuickBooks Online.

 

You can always tag my name in the comment section if you have other questions about QuickBooks. I'd be happy to help. Take care.

Fiat Lux - ASIA
Level 15

Imported Journal Entries - A/R Credits Causing Issues

@kvngrffn 

Consider having an importer tool to import your AR transactions into your QBO account. It would be easier to track the records later.

https:// transactionpro.grsm.io/qbo

 

 

kvngrffn
Level 2

Imported Journal Entries - A/R Credits Causing Issues

I was able to find that setting and turn off the auto-apply.  Unfortunately, that did not undo the existing application.  How can I find and reverse that incorrect application of the credit against the wrong invoices?

 

Thank you!

MirriamM
Moderator

Imported Journal Entries - A/R Credits Causing Issues

Thanks for getting back to us and providing an update, @kvngrffn.

 

When turning off the Automatically apply credits feature in QuickBooks Online (QBO), it will not affect transactions that are already applied. Thus, when you create a new Credit memo, this will not apply to any open invoices.

 

To find and reverse the incorrect application of the credit against the wrong invoices, here's what you'll need to do:

  1. Go to the Sales menu at the left pane, then select Customers.
  2. Click on the customer's name you want to open.
  3. Go to the Transaction List column, then filter the transactions to Credit memos.
  4.  Double click the credit to open the transaction.
  5. Click the payments made at the upper right corner and select the linked transaction.
  6. Make sure that the amount received is zero.
  7. Click More, and select Delete.
  8. You'll now have the unapplied credit.

 

I've added this resource if you need help on how to handle a customer credit or overpayment in QuickBooks Online.

 

For additional reference, visit this article on how to enter and apply credit memos and delayed credits in QuickBooks Online, which you may find helpful. 

 

Know that you're always welcome to stop by the Community if you need anything else. I'm here to help. Have a fantastic day!

kvngrffn
Level 2

Imported Journal Entries - A/R Credits Causing Issues

Unfortunately, that method does not solve our problem.  When we display the transaction list for the 'client' there are no relevant credit memos or payments regarding this transaction.  The attached screenshot (Trans_List.jpg) shows the transaction list view for the customer. 

 

The yellow highlight signifies the relevant A/R balance entries that were imported through the general ledger import.  Note that each line item is a unique client & invoice combination.  The red arrow signifies the original credit amount. The black outline shows the original imported invoice amounts.  The blue lines show where the credit balance was arbitrarily applied to several line items creating zero balances. The green + shows where the remaining balance was applied.  

 

All of these entries came through the J/E import, and there has been on payment received or credit memo processed in QBO regarding these items.  When we click the 'paid' link, it simply opens the entire imported journal entry. 

 

We need to undo this random application of credit to these items, and to apply the credit properly to a distinctly separate entry.  How do we undo the automatic random application of these funds in the absence of any originating process that created the issue?

Rasa-LilaM
QuickBooks Team

Imported Journal Entries - A/R Credits Causing Issues

Hello there, kvngrffn.


Thanks for following the solutions shared by colleagues and sharing the result.


We’ll have to review all your transactions to determine why there are no relevant credit memos or payments regarding this entry. I suggest contacting our QBO Care Team since they can access your account in a safe environment. They have tools to help check the root cause of the issue and guide you in applying the permanent fix.


Here’s how:

  1. Click on the Help icon at the top to display the QB Assistant window.
  2. Press the Talk to a human menu and enter the issue/topic.
  3. Follow the on-screen instructions to complete the process.
  4. Select Messaging for real-time assistance or Callback.

I’m also adding a link that contains resources to help easily manage your customers’ transactions: Self-help articles.


Don’t hesitate to visit the Community again if you have other QuickBooks concerns. I’ll be right here to help and make sure you’re taken care of. Have a good one.

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