How do I fix negative vendor AP balance from previous period?

aaaccounting · ‎April 04, 2019

The previous bookkeeper wrote out a check to AP account, instead of to an expense account. The vendor now has a negative balance, as does the AP account. Transaction is dated Dec 2017. What is the best way to fix this?

I understand that JEs for AP and AR are not considered best practice. Could I
1) delete/void the Dec 2017 check written out to AP, then
2) create a bill dated Jan 2018, then
3) pay it with check dated Dec 2017, then
4) re-reconcile that check amount with a current month's reconciliation (2019 yr) so that everything is as it was before.

I'm thinking that would not change any figures for the 2017 tax year, is that correct?

PreciousB · ‎April 04, 2019

Welcome to the Community, aaaccounting.

First, I want to thank you for providing me with the complete details of your concern. I'm here to get you pointed in the right direction for fixing the negative balance of a vendor.

A check posted to Accounts Payable can be applied as credits to a bill. You can create a bill, then make a payment using the credits. Don't worry, this will not affect the reconciliation as long as the bank account and the amount stays the same.

I'm happy to show you how:

Click the Plus sign icon, then select Bill.
Choose the vendor's name.
Enter the needed information.
Click Save.
Choose the Make Payment button at the top.
Select the bill at the top and the check under Credits.
Click Save.

Please refer to the screenshots below so you can easily follow the steps.

That information should get you back in order. I'd like to make sure that you're able to resolve this concern, so please let me know how that works for you. Best regards.

View solution in original post

PreciousB · ‎April 04, 2019

Welcome to the Community, aaaccounting.

First, I want to thank you for providing me with the complete details of your concern. I'm here to get you pointed in the right direction for fixing the negative balance of a vendor.

A check posted to Accounts Payable can be applied as credits to a bill. You can create a bill, then make a payment using the credits. Don't worry, this will not affect the reconciliation as long as the bank account and the amount stays the same.

I'm happy to show you how:

Click the Plus sign icon, then select Bill.
Choose the vendor's name.
Enter the needed information.
Click Save.
Choose the Make Payment button at the top.
Select the bill at the top and the check under Credits.
Click Save.

Please refer to the screenshots below so you can easily follow the steps.

That information should get you back in order. I'd like to make sure that you're able to resolve this concern, so please let me know how that works for you. Best regards.

aaaccounting · ‎April 04, 2019

Thanks very much, that worked perfectly.

PreciousB · ‎April 04, 2019

You're most welcome, aaaccounting.

I'm happy that it worked for you. I'm including some helpful video tutorials that help navigate QuickBooks Online: QuickBooks Tutorials.

Please come back to the Community should you have any questions about QuickBooks. I'm wishing you all the best.

Sail-2020_ · ‎July 22, 2020

What are the steps to this issue in QB's desktop version

MirriamM · ‎July 22, 2020

Welcome to the thread, @Sail-2020_.

I can convert the steps above for QuickBooks Desktop. Let me show you the step-by-step process.

Go to the Vendors menu at the top and select Enter Bills.
Enter the Vendor's name.
Fill out the needed information.
Hit Save.
Select Pay Bill.
Click OK on the pop-up window.
On the Pay Bills screen, select the Bills to be paid.
Enter amount.
Choose Pay Selected Bills.
Pick Done.

Here are some screenshots for your visual reference:

You can also check these articles for more information on the process above:

For future tasks related to QBDT, visit our Community help articles.

You're always welcome to get back to me if you need other help in managing your account. I'm more than happy to assist further. Have a great day!

**Say "Thanks" by clicking the thumb icon in a post.

**Mark the post that answers your question by clicking on "Accept as solution".

contadora23 · ‎March 08, 2021

i have the same issue but in QuickBooks desktop? help please

MorganB · ‎March 08, 2021

Hey there, contadora23.

Thanks for joining this thread. You've come to the right place for assistance and I'd be glad to provide some more info.

The steps to get this done in the Desktop version of the software were mentioned above by MirriamM (along with some handy screenshots). It can be easy to skip over when there are several comments in a thread. Here are the steps to get this done:

Navigate to the Vendors menu at the top and select Enter Bills.
Enter the Vendor's name.
Fill out the needed info.
Click Save.
Select Pay Bill.
Click OK on the pop-up window.
On the Pay Bills screen, select the Bills to be paid.
Enter amount.
Choose Pay Selected Bills.
Click Done.

The following articles provide even more info about this process:

That will do it. Please don't hesitate to reach back out if you have any other questions or concerns. Take care!

gsilvapo · ‎July 02, 2021

Hi there,

I have a negative AP balance in my vendor, but it shows that I have 0 credits.

Can you help me understand why?

Thanks,

gsilvapo · ‎July 02, 2021

Hi there,

I have a negative AP balance, but I don't see any credit available for me to create another bill and pay them with credits.

Can you help me understand why?

Thanks,

ShiellaGraceA · ‎July 02, 2021

Thanks for joining us here today, @gsilvapo.

It seems that this is a duplicate post. One of my colleagues has answered your other post. Feel free to check out her answer at this link: https://quickbooks.intuit.com/learn-support/en-us/payments/negative-ap-balance-but-no-credits-availa....

Additionally, you can run the Verify and Rebuild Data Utility tools. The Verify Data self-identifies the most commonly known data issues within a company file while Rebuild Data self-resolves most data integrity issues that the Verify Data finds. Refer to this article for the detailed steps: Verify and Rebuild Data in QuickBooks Desktop.

Please know that you're always welcome to reply anytime if you have follow-up questions or concerns. I'm always here to help. Take care and have a good one.

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How do I fix negative vendor AP balance from previous period?