Created by QB Online to adjust balance for deletion

Hello there, DBJ-CA.

Let me share some details about the display message when pulling up a Statement of Activity report.

The purpose of the credit memos with the description "Created by QB Online to adjust the balance for deletion" in QuickBooks Online (QBO) is to maintain accurate financial records when deleting transactions or accounts. 

In QuickBooks Online, deleting certain transactions or accounts can lead to imbalances or inconsistencies in your financial data that's why QBO generates credit memos automatically with the description mentioned earlier. These credit memos are created to adjust the affected account balances and maintain the accuracy of your financial statements.

I'm also sharing this article to help personalize your report and add details based on your preference: Customize reports in QuickBooks Online.

If you require further assistance managing reports or related matters, reply to this thread. I am here to support you at any time.

@DBJ-CA 

If they're credit memos, they should also be on your balance sheet as a reduction in A/R.  I would run an A/R aging report to make sure that, if you delete them, your A/R balances for each customer will be correct.  

Thanks much for weighing in. They are on the balance sheet, summarized as negative net revenue. They are not on the aging report nor individual customer ledgers. Does that give you any more insight into the situation?

Hi Glinette -

Thank you for your comment.

Please let me know if there's information I can provide to help you determine if deleting these transactions will lead to imbalances or inconsistencies.

Hello, @DBJ-CA.

I'm here to clarify the effects of deleting transactions in QuickBooks Online.

QBO creates credit memos with the description "Created by QB Online to adjust the balance for deletion" to help ensure that financial records remain accurate when transactions or accounts are deleted. This feature is designed to assist users in maintaining error-free financial records and to provide an extra layer of reliability to their accounting processes.

If they want to delete since they're not showing AR ageing and individual customer profile/account, they can delete it, but take note it will affect the balance of the account depending on where you post your adjustments. Of this, it is advisable to seek advice and guidance from a professional accountant.

Moreover, once you're all set, you can refer to these articles for future reference. These can guide you on how to modify your reports and match your accounts seamlessly: 

• Customize reports in QuickBooks Online 
• Reconcile an account in QuickBooks Online

If you still have further questions about the new update or any QBO-related concerns, you can comment below, and we'll respond to you as soon as possible.

Hi Ariell - 

Thank you for your comment.

Here are some details about the transactions in question:

The organization I'm working with makes loans. Each loan is tracked as a receivable, not current asset.

We are in the process of implementing Quickbooks.

During conversion, we had a glitch which required us to reload the invoices (one invoice per loan).

The reload apparently caused the original invoices to be reversed and generate the credit memos, as the amount on each credit memo equals the invoice amount.

Each credit memo is posted as a refund (negative) to the Services revenue account.

I believe these can be safely deleted, but am not positive.

With that context, are you able to advise further?

Thank you,

David

Hi there, DBJ-CA.

Allow me to chime in on this thread and clarify things regarding the credit memo posted as a refund to your Services revenue account in your QuickBooks Online account. 

I agree with Rainflurry's take on this matter. Since you've already confirmed that they are on your balance sheet and summarized as negative net revenue but didn't show on your Aging Report or in the Individual Customer Ledgers, you can delete them. Before doing so, ensure that the current balance is correct and that the credit memo does not display the incorrect balance. 

Furthermore, after getting your transactions on the right track, you can generate a report according to your business needs and preferences. Refer to this article for more guidance: Customize reports in QuickBooks Online.

Keep me posted if you require more assistance when working with credit memos in QuickBooks. I’ll jump right back in to assist further. Have a great day ahead!

Hi Irene R -

Thanks incredibly helpful. I'll try deleting one and see how that ripples through, then will do the others if the trial goes well.

Unrelated, I'm having a problem with bank recon. I posted the issue to the community but haven't gotten any replies. If bank recon is in your wheelhouse, may I post the issue here or direct you to the previous post?

Thank you!

I'm glad to hear that my peer, Irene R, has helped you clarify things in managing credit memos in QuickBooks Online (QBO), @DBJ-CA. Rest assured that we're diligent and eager to help everyone with concerns posted to the Community.

On the other hand, you can surely add your queries about bank reconciliation to this forum, or add another post to the previous one you have already entered. Either way will work and will be responded to by us.

In cases where you encounter any issues in reconciling your account, managing your opening balances, or bank statements don't match at the end of a reconciliation, you can take a look at these articles for available fixes:

• Enter and manage opening balances in QuickBooks Online
• Fix issues at the end of a reconciliation in QuickBooks Online
• Fix issues for accounts you've reconciled in the past in QuickBooks Online

Please don't hesitate to tag us here to ensure your concerns with reconciliation will be addressed accordingly. Stay safe!

can we turn off this meddling feature?  this program is so clunky as it is.  

The option to turn off the balance adjustment for deletions is unavailable in QuickBooks Online (QBO). This feature helps users maintain accurate financial records and adds reliability to their accounting processes.

To improve your experience, I'll route you to our product developer and discuss this with them. This way, they will review this and consider adding it to the next product update.

Here's how to submit feedback:

1. Go to the Help icon at the top menu.
2. Select Send Feedback Online and then click Product Suggestion.
3. Enter your request, then tap Send Feedback.

Keep an eye on your suggestions through this website and stay updated on recent developments by visiting our blog.

I've added these links for future reference. These can guide you on how to modify your reports and match your accounts seamlessly: 

• Customize reports in QuickBooks Online 
• Reconcile an account in QuickBooks Online

when working with credit memos in QuickBooks

I'm only a post away if you need more help managing credit memos in QuickBooks. It's always my pleasure to help you out again.