How to clear accounts receivables from prior years in QB Desktop

Hi there, FMB01. 

Let me share with you some information about clearing Accounts Receivables in QuickBooks Desktop (QBDT).

if you're seeing customers with net zero balances, it is usually caused by an invoice that's not linked to payment or credit. To apply for the credit, here's how:
 

1. Click the Customers tab, then Receive Payments.
2. Enter the customer name in the Received From drop-down.
3. In the Payment Amount field, enter the payment you received from the customer.
4. Press the More button, then Add New Payment Method button.
5. Set up your payment method then click OK.
6. Mark the invoices you want to receive the payment.
7. Hit Save & Close.

However, if no payments aren't showing, you'll need to record them as bad debt and write them off.  

Here's how to add an expense account to track the bad debt:

1. Go to the Lists menu.
2. Select Chart of Accounts.
3. Click the Account menu at the bottom left, then select New.
4. Select Expense, then Continue.
5. Enter an Account Name. 
6. Click Save and Close.

Once done, we can start over to close out the unpaid invoice. 

1. Go to the Customers menu.
2. Select Receive Payments.
3. Enter the name of the customer in the Received field.
4. For the Payment amount, enter $0.00.
5. Select Discounts and credits.
6. In the Amount of Discount field, enter the amount you'd like to write off.
7. For Discount Account, select the bad debt account, and select Done.
8. Click Save and Close.

Feel free to use this link on how to record common customer transactions in QuickBooks Desktop. 

I'll be here if you have other questions about handling your sales transactions in QuickBooks. I'll be here to help. Have a good one!

@FMB01 

If you double-click on the $350.00 on the A/R Aging Summary, then double-click on one of the entries on the A/R Aging Quick Zoom Report, it will pull up the A/R ledger for that customer so you can see where the $350 A/R debit balance comes from.  

These are not zero balances on the AR Summary.

I appreciate you posting back to the thread, @FMB01.
 

I'd like to know if the suggested processes above were able to help you with clearing accounts receivable from prior years or if you have clarification or any other concerns to assist you further.
 

I'll be waiting for your reply. Take care, and have a good one!

Yes, that is how I determined these were caused by a Credit Card Refund.  This does not help me correct and clear the receivables.

No, neither of the responses have helped me clear the receivables.

@FMB01 

If you post a screenshot of the customer's A/R ledger (see my instructions above) or the Customer Balance Detail Report, I can help you clear the receivable.  Your original screenshots do not give enough info.  We need to see exactly what entries hit A/R for that customer.

Hi there, @FMB01. Thanks for getting back to the thread.

I appreciate all your efforts in performing the steps provided by my colleagues. I understand how relevant it is to make your book accurate. Let me give you another workaround to clear your accounts receivables from prior years.

We can create a Journal Entry (JE), then reverse it to clear any accounts receivable in QuickBooks Desktop.

To create a journal entry:

1. Go to the Company menu.
2. Select Make General Journal Entries.
3. Fill out the fields and make sure your debits equal your credits.
4. Click Save and Close.

Then, reverse it. Here's how:

1. Go to the Company menu, then select Make General Journal Entries.
2. Select Find to search for the journal entry you need to reverse.
3. Enter the Name, Date, Entry No., or Amount, then click Find.
4. Select Reverse, then Save and Close.

Check out this article for the detailed steps in recording journal entries in QuickBooks Desktop: Create a journal entry in QuickBooks Desktop for Windows or Mac.

In addition, I'd recommend consulting your Accountant for additional assistance with your accounts receivable queries.

Please see this article to learn how to manage your accounts in QuickBooks to match your real-life bank and credit card statements: Reconcile an account in QuickBooks Desktop.

You may visit this link for more detailed information on how to match, split, and exclude transactions: Add and match Bank Feed transactions in QuickBooks Desktop.

If you require additional assistance with your accounts receivable or any QuickBooks-related concerns, we are available 24 hours a day. Just click the Reply button below. Keep safe!

I followed these instructions exactly.  I entered a discount amount etc etc.

It removed them from the AR listing etc - BUT it counted everything as sales - and all the sales tax and sales reports are messed up now.   

So I am reversing everything and trying to think of some other way to remove them.  

Did I miss a step?

This company is on a cash basis, however has extensive A/R being a construction type company.   

What do you suggest to do?

Receivables cleared but all the sales and sales tax reports are messed up.

ALL of them.   I followed the instructions exactly.   

We are a cash based company, but have extensive receivables.    

How do I bad debt the old ones out without affecting the CASH sales reports?

@cheriesontop 

For companies on cash basis, you need to zero out the invoices.  Creating a discount or credit memo will cause QB to book the income (and sales tax) on the invoice with a corresponding amount of bad debt expense.  

I need to clear out my A/R for tax purposes as of 12/31, but the invoices were paid in the new year. When I tried to make a journal entry directly to A/R using a dummy customer for the LOTS of open invoices, it still showed the A/R balance on the Balance Sheet. Yet it had a different balance when I pulled the A/R report with that date. All reports are on cash basis, and I need the A/R back for Jan 1 since the invoices were paid. Help?

This was SUPER helpful!

This was SUPER helpful!  Thank you!

I'm so glad to see you received the info you were looking for here in the Community, SCZito! You know where to come if you ever need a hand again in the future.