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SOARESCUE
Level 1

Payments go to A/R

So I've read through a few of the other discussions here and I'm still stuck. I can't figure out why when I assign a payment to an invoice (link in banking) it puts the payment under A/R. That seems like the wrong account and it doesn't give me an opportunity to reassign that transaction account. 

Workflow:

1. Send invoice. line item has income and expense accounts linked. 

2. customer pays invoice. 

3. QB deposits money. 

4. When I go to reconcile transactions, it automatically assigns the payment to A/R when I match the payment to the invoice. If I don't match the payment, it leaves the invoice open. 

 

Stuck... it's throwing my P/L off by big numbers. 

2 Comments 2
Candice C
QuickBooks Team

Payments go to A/R

Good Evening, @SOARESCUE

 

It's great to see you back in the Community. I can see how this can be time-consuming by trying to figure out how to fix your balances within your Profit and Loss report. To give you the best solution, can you provide some screenshots of the report and of the payments that are under the A/R? Once I receive this information, I'll be able to determine a solution to this issue. In the meantime, you can check out this link about A/R balances

 

I want to make sure that this gets resolved as soon as possible. I'll be waiting for your response!

MarshallA
Intuit

Payments go to A/R

Hello,

 

Let me give you a little background please.

 

When you create an invoice this is what happens:

Increase Income 

Increase AR

 

When you receive payment against the invoice:

Decrease AR

Increase Bank Account (or undeposited funds)

 

When you record an invoice that is when you are hitting your P&L income side.  The payment is used to lower the AR account by the amount of that payment because you're no longer expecting to receive it.

 

Typically everything on an invoice hits an income account or liability account (sales tax).  Is there a reason you have items on an invoice hitting expense accounts?

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