How do I clear a zero-balance AP account?

Hello, lross. I can definitely help you clear the A.P. account.  

Clearing a zero-balance Accounts Payable (A.P.) account in QuickBooks Online requires attention and accuracy. To start, you can create an expense, check, or pay bills and then link the Journal Entry (J.E.). Here's a more detailed explanation of each step: 

• Create an expense, check, or pay bills: Depending on your preference and the transaction history, you can create an expense, check, or pay bills. For instance, if you have already paid the vendor, you can create a check and link it to the A.P. account. If you still need to pay, you can create a bill and then pay it. 
• Link the Journal Entry (J.E.): After creating the transaction, you need to link it to the Journal Entry (J.E.). This is where you will record the payment and clear the A.P. account balance to zero. In the J.E., you will need to choose the appropriate accounts and enter the payment amount. The A.P. account should be debited, while the cash or bank account should be credited.
• Ensure accurate recording: It's crucial to ensure that all the transactions are recorded accurately to avoid discrepancies. For instance, if you use the wrong account or amount, there will be a mismatch between the accounts, and the financial statements will not be accurate. Therefore, ensure that you double-check all the details before recording the transactions. 
   

1. Click the Expenses tab on the left-hand side menu. 
2. Select the Payee/Vendors. 
3. Locate the vendor account you want to clear and click on it. 
4. Click the Journal Entry to add the transactions. 
5. Tap Save and Close. 

For Check: 

1. Click the +New icon.
2. Select Check.
3. Choose the Payee.
4. Add the J.E. transaction.
5. Tap Save and close.

For Pay Bills:

1. Click the +New icon.
2. Mark-check the transaction.
3. Then tap Save.

This will record the payment and clear the vendor's account. The account should now show a zero balance. By following these steps, you can quickly clear any zero-balance accounts payable accounts in QuickBooks Online. Please note that it's always a good practice to consult with an accounting professional for documentation for specific guidance tailored to your situation.

Additionally, if you wish to check the outstanding balances owed to vendors or suppliers, you can run an Accounts Payable (A.P.) aging report. The report is used by businesses to track their payables and ensure timely payments to vendors. By analyzing the report, businesses can identify overdue payments, prioritize payments, and avoid penalties for late payments.

If you have any more questions or clarifications after trying the steps, let me know in the comment below. I'll be right here to help. Have a nice day!

@lross-sentinelme 

Ignore @AileneA 's response.  I think it was AI-generated.

Go to Pay bills (New > Pay bills).  From there you should be able to see all the vendors that have an A/P credit.  if they have an A/P debit, there will be either a box under the CREDIT APPLIED column.  If you have your settings set to automatically apply vendor credits, the box will auto-populate the credit (A/P debit).  If that setting is turned off, you can turn it on (Settings >  Accounts and Settings > Advanced > Automation > Turn on Automatically apply credits) or enter the credit manually.  You should be all set.

@lross-sentinelme 

EDIT:  if they have an A/P debit, there will be either a box under the CREDIT APPLIED column.

If they have an A/P debit, there WILL be a box under the CREDIT APPLIED column.

@AileneA 's check method solved the issue

The check method worked, thank you. It would be great if you can share it with the 6 or 7 reps I spoke with about this issue yesterday over 6-8 hours who truly had no understanding of the issue or how to troubleshoot it.