Offset customers open and overdue amounts

ML55 · ‎March 10, 2022

I recently started using QBO for my new employer. I try to clean customer accounts and found the issues that started during periods that were closed by CPA. QBO has an issue with applying prepayments against invoices and it causes the problems.

The company uses cash method and I can't go back to already closed years to make any adjustments at that time frame, such as changing date on invoice or others. Even, when I try to fix some payments, made in the year that was not closed, against closed year invoice, QBO does not allow me to do this. It is very poor design of software.

How can I clean customer records that create open and overdue balances on the books?

Rustler · ‎March 11, 2022

In QB the money received need to be received against the invoice in receive payments, then deposited. Then you download banking and match.

If the CPA will not open the records, the only option is to create a service type item that is linked to the retained earnings account. Use that item on a customer credit memo and apply the memo to an open invoice.

The software is not true accounting software IMO. So you have to use the forms and work flow that QB dictates for things to work properly. Journal entries should be avoided as they are not part of the work flow and do not show in some reports, as well as often not working as you think they should.

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Offset customers open and overdue amounts

Offset customers open and overdue amounts

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