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Clean Up Old A/P

Forum|Forum|1 year ago
August 11, 2024
1 reply
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Took over a company and trying to clean up their old A/P and the Pay Bills window. The actual A/P balance is showing only $8675 which is the most recent journal entry in 2023. But the Pay Bills window has a ton of old transactions showing besides that which have never been cancelled out. (See Photo). How can I get these cancelled out appropriately so they no longer show in the Pay Bills window? I will deal with the existing A/P $8675 balance separately. Please if you offset to another account, which account? Thanks!

QuickBooks Desktop

Best answer by Rainflurry

@coloradoperkins

First, ignore the advice given by @AbegailS_ . That must be an AI-generated post. That advice could not be less helpful. I have no idea what "Creditors" are in QB Desktop. Also, it would do nothing but reclass your A/P balance to a bank clearing account which makes no sense.

To answer your question, if the $8,675 A/P balance was paid via check instead of using bill payments, you can just change the account listed on the checks to A/P and then apply them to the bills.

If January is closed, then you will need to reverse the January entries in the current period. What account(s) were assigned to the checks? Whatever they are, they are overstated because the asset/expense accounts listed on the bills from 2023 have now most likely been duplicated by issuing the January checks. You want to make journal entries that credit the account(s) listed on the January checks and debit A/P. Then, apply the credits created by the journal entries to the outstanding A/P balance. This assumes you're on accrual basis.

C

coloradoperkinsAuthor

I solved the old amounts by making all the vendors match and then applying as credits. Problem now is the current $8675 A/P balance from 2023 was paid via checks in Jan 2024 and not paid via bill payments. How to resolve?

RainflurryAnswer

Level 11

@coloradoperkins

First, ignore the advice given by @AbegailS_ . That must be an AI-generated post. That advice could not be less helpful. I have no idea what "Creditors" are in QB Desktop. Also, it would do nothing but reclass your A/P balance to a bank clearing account which makes no sense.

To answer your question, if the $8,675 A/P balance was paid via check instead of using bill payments, you can just change the account listed on the checks to A/P and then apply them to the bills.

If January is closed, then you will need to reverse the January entries in the current period. What account(s) were assigned to the checks? Whatever they are, they are overstated because the asset/expense accounts listed on the bills from 2023 have now most likely been duplicated by issuing the January checks. You want to make journal entries that credit the account(s) listed on the January checks and debit A/P. Then, apply the credits created by the journal entries to the outstanding A/P balance. This assumes you're on accrual basis.

C

coloradoperkinsAuthor

Yes, this, thank you!

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