Is there a way to clear closed items in GL Accounts? We hold retention when we pay subcontractors until projects are complete. Therefore, when we record their invoices we are debiting the full expense and crediting AP for what we are paying them at that moment, and crediting a liability account for Retention Due to Subcontractors for the 5-10% we are holding contractually until the project is done.
I would like to be able to clear the line items that we have retained then paid, leaving only uncleared items open. In SAP I was able to clear open items in GL accounts. Cannot find out how to do this in QB. Please advise.
Hi there, @CN_N.
Can you share with more details on how these closed items are set up in your account? That way, I can provide you the right solution to address the issue. Any further info would be much appreciated.
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I created a GL account for a current liability and titled it Retention Due to Contractors. I am speculating that I should have made this a sub account of Accounts Payable for it to have clearing functionality. Seems the only accounts that can be cleared at present are AP, AR and banking accounts. Are you aware of any way to clear other GL accounts to only leave open items uncleared?
Thanks for updating this thread, @CN_N.
I want to share some insights about clearing an account in QuickBooks Desktop.
When you want to update any transactions related to a GL account, you have to consider the type of transactions you created. If you want to edit non-posting transactions, those entries that doesn't affect your balances, you can edit it and retain only the line items needed.
To do that, open the Chart of Accounts and double-click the GL account. Find the entry and edit it accordingly.
However, if you want to edit existing posting transactions, please be reminded that it will affect our financial reports. Removing or adding line items on those transactions will change the amount of the original transaction.
Visit us again if you need clarification or further help with this topic. I'll be right here to help you out.
That is not what I hope to accomplish.
What I want to do is clear amounts against each other so that only truly open items remain, just as occurs in AP, AR and banking. I do not want to change original transaction, just want to be able to note which entries have cleared against each other.