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Frequent Contributor *

CHART OF ACCOUNT SHOULD NEVER HAVE BEEN ESTABLISH OR POSTED AGAINST-PLEASE I NEED HELP

I really need help.  I have a HUGE, HORRIBLE, REALLY BAD error on my chart of account sub-accounts and my parent account.  Early on, 3 chart of accounts were set up; checking account as the parent; lets say 1000. Cash account and 1010 cash account and 1020 cash account.  Evidently the creator and users posted some transactions to the sub-accounts and then realized the accounts were unnecessary and did a Journal Vouch trying to correct the problem and to use only the one parent account=1000.  Some how the two accounts together actually are equal to the correct balance of the parent account and the two sub accounts should not be reflected on the chart of accounts at all.  Now, when I tried to 'delete' or make the two sub accounts go away because they are wrong, should never had been establish much less used, I receive a message that an adjusting entry will be created-which I am afraid will impact my correct balance in my parent account-checking account-which is correct and should not be used in an adjusting entry because the checking account, parent account, will be totally wrong.  I just need these two sub accounts GONE forever more, because in the event of an audit and the fact that they are sitting on my chart of accounts with money on them, I'm petrified.  There must be a way to get rid of the sub accounts without impacting the correct cash account.  Any ideas? I couldn't get the ledger to print very well, but I've attached an image that I pray you can read.  I really need help because if I can't fix this problem, it may mean I'll lose my job.  HELP, please.  I am so afraid I'm in trouble.  Please tell me someone knows how to fix this or that QB systems folks can 'strike' it from the my QB online transactions; something, how do to a correct using a JV to fix it, if there's a way.  I worked for the Department of Defense for many years and we were able to code our journal voucher to only impact one account; we had situations where we did not need to debit and credit two different accounts......Please tell me there is a way to do this.  Please, please.  Thanking you in advance, VERY AFRAID in Chesapeake, VA, Sincerely, Im4gltr.

Solved
Best answer 09-11-2019

Accepted Solutions
Moderator

Re: CHART OF ACCOUNT SHOULD NEVER HAVE BEEN ESTABLISH OR POSTED AGAINST-PLEASE I NEED HELP

I've got your back, @im4gltr.

 

In QuickBooks, you can't delete or make a sub-account inactive if it has a non-zero balance or there are still transactions associated with them. Instead of doing that, you can just merge them with the parent individually.

 

Here's how:

 

  1. Go to the Accounting menu at the left pane to go to the Chart of Accounts.
  2. Locate the sub-accounts and click the drop-down arrow beside the View Register under Action column. 380.PNG
  3. Make sure that the Account Type, Detail Type, and the Name is the same as the parent.
  4. After that, remove the checkmark in the Is sub-account box, then hit Save and Close381.PNG
  5. Select Yes to confirm. 382.PNG
  6. Do the same steps for the other sub-account.

 

For additional information, consider checking out this article: How to merge accounts, customers, and vendors.

 

I know you can do this, but please let me know if you have any other issues or concerns in the comment. I'll be here to help. Take care and have a wonderful day!

Highlighted
Established Community Backer ***

Re: CHART OF ACCOUNT SHOULD NEVER HAVE BEEN ESTABLISH OR POSTED AGAINST-PLEASE I NEED HELP

This doesn't sound as bad as you imply...

A 'real' bank account should always be represented in QB as a single 'bank type' gl account in the COA. You may group multiple bank account as sub-accounts under header account(s) if you wish - which is what you have.

 

I think what you are saying is that the 2 sub accounts in your COA each have partial records from a single real account (for some reason). That's not the way to do it.  Perhaps at one time there was a second real account?  There may have been some other reason for the setup once upon a time.

 

IF the 2 gl accounts have always represented only one real bank account then one solution would be to merge those 2 accounts.  This gives the right accounting outcome but may create confusing records if the sub-account have somehow been reconciled individually.  And personally I don't like to mess with prior closed year entries - a merge means that ALL the past entries in one account will be changed.

Another option would be to manually edit the current entries in the less used gl account and recode them to the other account. Even if there are lots of transactions it would be fairly quick and easy to do.

The final option is to simply JE the month end balance out of one account and drop it into the other so one of the account appears to have zero balance.  

5 Comments
Moderator

Re: CHART OF ACCOUNT SHOULD NEVER HAVE BEEN ESTABLISH OR POSTED AGAINST-PLEASE I NEED HELP

I've got your back, @im4gltr.

 

In QuickBooks, you can't delete or make a sub-account inactive if it has a non-zero balance or there are still transactions associated with them. Instead of doing that, you can just merge them with the parent individually.

 

Here's how:

 

  1. Go to the Accounting menu at the left pane to go to the Chart of Accounts.
  2. Locate the sub-accounts and click the drop-down arrow beside the View Register under Action column. 380.PNG
  3. Make sure that the Account Type, Detail Type, and the Name is the same as the parent.
  4. After that, remove the checkmark in the Is sub-account box, then hit Save and Close381.PNG
  5. Select Yes to confirm. 382.PNG
  6. Do the same steps for the other sub-account.

 

For additional information, consider checking out this article: How to merge accounts, customers, and vendors.

 

I know you can do this, but please let me know if you have any other issues or concerns in the comment. I'll be here to help. Take care and have a wonderful day!

Highlighted
Established Community Backer ***

Re: CHART OF ACCOUNT SHOULD NEVER HAVE BEEN ESTABLISH OR POSTED AGAINST-PLEASE I NEED HELP

This doesn't sound as bad as you imply...

A 'real' bank account should always be represented in QB as a single 'bank type' gl account in the COA. You may group multiple bank account as sub-accounts under header account(s) if you wish - which is what you have.

 

I think what you are saying is that the 2 sub accounts in your COA each have partial records from a single real account (for some reason). That's not the way to do it.  Perhaps at one time there was a second real account?  There may have been some other reason for the setup once upon a time.

 

IF the 2 gl accounts have always represented only one real bank account then one solution would be to merge those 2 accounts.  This gives the right accounting outcome but may create confusing records if the sub-account have somehow been reconciled individually.  And personally I don't like to mess with prior closed year entries - a merge means that ALL the past entries in one account will be changed.

Another option would be to manually edit the current entries in the less used gl account and recode them to the other account. Even if there are lots of transactions it would be fairly quick and easy to do.

The final option is to simply JE the month end balance out of one account and drop it into the other so one of the account appears to have zero balance.  

Frequent Contributor *

Re: CHART OF ACCOUNT SHOULD NEVER HAVE BEEN ESTABLISH OR POSTED AGAINST-PLEASE I NEED HELP

Thanks so much!  To me, it seems that merging the sub-accounts into the parent account will increase the parent account and if so, that won't be correct??? I can't merge the account because the total in the sub-account has already updated the parent account.  If there merged, won't that add to the parent account....?????  The transactions that posted to the sub-accounts have already updated the parent account......Somewhere I am really losing this.  I just tried to JE and it did it exactly what I thought, it reduced the parent account by the amount of the JE which is the amount sitting in the two sub-accounts.  The two sub-accounts were indeed a huge mistake; not the right way to set it up because yes, it is one and only one bank account.  The user thought it would be a way to define different types of cash when that was easily done a number of other ways.  I just don't know what to do, but I have to get that money out of those accounts because it is just wrong since the Bank Account account is correct.  It distorts everything.  Thanks again.

Frequent Contributor *

Re: CHART OF ACCOUNT SHOULD NEVER HAVE BEEN ESTABLISH OR POSTED AGAINST-PLEASE I NEED HELP

Thank you so much.....I'm just so confused.  I followed the directions from above and when I did, the parent account was reduced by the amount in the sub-account for which I performed your directions.  The account numbers and names are different but the detail and type are the same.  I guess I'll try merging but I really think that is going to create an increase to the parent account .  thanks so much for trying to help me.

Frequent Contributor *

Re: CHART OF ACCOUNT SHOULD NEVER HAVE BEEN ESTABLISH OR POSTED AGAINST-PLEASE I NEED HELP

I LOVE YOU!  It appears as though it all worked!  THANK YOU SO MUCH!!!!!!!!!!!!!!!!!!

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