Proper journal entry for a receipt to recognize and offset an aging accounts payable balance

john-omnifi-io · ‎October 14, 2024

Hello,

I created a journal entry in Aug 2024 to recognize and accounts payable balance. Since then an employee made a payment on their personal credit card, which we subsequently reimbursed which offset and reduced the account payable balance.

For the employee reimbursement I assigned the payment to the same accounts payable account with the same vendor, but the entry did not offset the accounts payable balance, it simply created a new negative amount aging accounts payable balance.

Does anyone have advice on the proper journaling to recognize this?

Rainflurry · ‎October 16, 2024

@john-omnifi-io

"when I tried the previously recommended solution to "Pay Bills" it resulted in this double payment entry."

When you go to Pay Bills, there is no entry being made. That's just where you apply the $216.35 credit to the balance due of $216.35 to remove them from the A/P aging report. Are you saying when you go there, you don't see a bill for Google Voice for $216.35 with an amount in the "CREDIT APPLIED" box of $216.35? If not, a screenshot of the Pay Bills screen please.

If I'm following, there's an extra A/P credit of $8,128.41 for Vendor X, correct? You can click on that total on the A/P aging report and delete the duplicate entry. Then, you should be able to apply the $8,128.41 credit to the $8,128.41 to the balance due by going to Pay Bills. Again, if you don't see this bill and credit under Pay Bills, a screenshot of the Pay Bills screen please.

View solution in original post

Rainflurry · ‎October 15, 2024

@john-omnifi-io

Did you apply the A/P debit to the A/P credit by going to New > Pay bills? If not, go there and apply the credit to the "bill" created by the Aug. 2024 journal entry. If the A/P balance for that vendor is just a negative amount equal to the employee's reimbursement, then somehow the A/P from the Aug. 2024 journal entry was cleared.

john-omnifi-io · ‎October 15, 2024

Hi Rain flurry,

When I go in and "Pay Bill" it then creates a double entry for the payment. Their is the journal entry that I created for the reimbursement and after "Pay Bill" there is then the payment + the journal entry. For some reason it's not recognizing those two transactions are one in the same.

I have a similar issue with another transaction. I created an Accounts Payable amount in Aug. In Sept, we then incurred a transaction that was x2 of our monthly amount, half of which is for the Aug Accounts Payable and half of which is the Sept amount. So I split the transaction with 1/2 going to Account X and 1/2 going to Accounts Payable. When trying to similarly "Pay Bill", QBO is creating a double payment amount. One for the split transaction and one for the "Pay Bill" amount.

Rainflurry · ‎October 15, 2024

@john-omnifi-io

Can you post the exact journal entry from Aug. 2024 and the exact transaction that was used to reimburse the employee? Screenshots would be great. I need to know what account(s) were debited and credited and the amount. Also, how did you reimburse the employee? A check? A bill and bill payment? A journal entry? Whatever that was, I need the debit(s), credit(s), or category(ies) from that transaction as well.

john-omnifi-io · ‎October 16, 2024

Hi Rainflurry,

Here is the most straightforward example of the employee reimbursement for a charge re: Google Voice.

I've attached an image containing three screenshots; hopefully they're not too small. Note that the top screenshot is the journal entry creating the accounts payable balance, the middle screenshot is the journal entry clearing the accounts payable balance (or trying to), and the bottom screenshot is the resulting accounts payable aging report.

Note on the Accounts Payable aging report there is another vendor for the first row; this vendor also has an issue and when I tried the previously recommended solution to "Pay Bills" it resulted in this double payment entry. It's a separate issue on a related topic but different from the specific instance we're discussing.

Any guidance is appreciated!

Rainflurry · ‎October 16, 2024

@john-omnifi-io

"when I tried the previously recommended solution to "Pay Bills" it resulted in this double payment entry."

When you go to Pay Bills, there is no entry being made. That's just where you apply the $216.35 credit to the balance due of $216.35 to remove them from the A/P aging report. Are you saying when you go there, you don't see a bill for Google Voice for $216.35 with an amount in the "CREDIT APPLIED" box of $216.35? If not, a screenshot of the Pay Bills screen please.

If I'm following, there's an extra A/P credit of $8,128.41 for Vendor X, correct? You can click on that total on the A/P aging report and delete the duplicate entry. Then, you should be able to apply the $8,128.41 credit to the $8,128.41 to the balance due by going to Pay Bills. Again, if you don't see this bill and credit under Pay Bills, a screenshot of the Pay Bills screen please.

john-omnifi-io · ‎October 16, 2024

I got it. This helped. Like you said, going in to "Pay Bills" it shows there is credit available to apply again open balances. You then assign that credit to the open balance and it then applies it and updates the AP aging report.

That credit balance available is a bit hidden. The cell is editable and then when you click on it it then shows the available credit amounts.

Thank you so much for your help troubleshooting this! Please level up to 14!

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Proper journal entry for a receipt to recognize and offset an aging accounts payable balance