Journal entries and aging reports

SvitlanaP · ‎May 24, 2021

Hello,

it happens that business demands that invoices should to be created first and then to be adjusted. All adjustments are made with the help of a single journal entry on the same date when invoices were created.

Unfortunately, when an aging report is created, it turns out that amounts from the journal entry are not applied against invoices to net them off, they are shown as separate amounts in the report. What's more, the amounts from the journal entry appear in a different period, other than the period of invoices, even though the JE was created on the same date as invoice.

Could you, please, advise on how the problem of different periods could be solved.

Thank you.

ChristieAnn · ‎May 25, 2021

Hi there, SvitlanaP.

Welcome back to the thread, SvitlanaP. I'm happy to know that the details shared above were able to help you with your concern. With this, I'll ensure to provide further information on how aging reports work.

Aging reports present an overview of the customer's outstanding balances and those who missed paying their payments. Then, it also shows how much is still due and how long they’re past the due. That said, entries posted on the aging report depend on the terms set up. That's the reason the transactions posted on the same date could appear in different aging periods in a report. To view further details, you can open this article: Run accounts receivable aging report.

You can go to the Sales tab and review all customer transactions from there including the invoices. That way, you're able to check the terms set up so you can make any changes and view transactions posted on the same date with the same aging periods.

Here's how:

Click the Sales menu on the left panel.
Choose Invoices section.
Select each entry and click it to show the Edit invoice button.
Go to the Terms drop-down arrow and change it if necessary.
Hit Save and close.

You can click this article to see additional information on how the Sales page gives you a great at-a-glance view of the status of sales transactions: View sales transactions.

Please refer to this article to view detailed steps on how you can personalize your reports to focus on the details that you want to see: Customize reports in QuickBooks Online.

Should you need further assistance, please do not hesitate to post again by clicking the Reply button below. I'll be glad to work with you again. All the best!

View solution in original post

Catherine_B · ‎May 24, 2021

I can help you zero out your ageing invoices, SvitlanaP.

When you want to link a journal entry to open invoices, you may need to use the Accounts Receivable account. I suggest reaching out to your accountant for any advice they can provide on how to record and link it so we don't mess up your books.

Also, you can receive payment at once instead of creating journal entries. Let me show you how to receive customer payments at once.

Click the +New button and click Receive payment.
Select the customer's name and all open invoices will be listed.
Check all ageing invoices that need to be zeroed out.
Click Save and close.

Then, you can check our customer balances and register to review the amounts.

Feel free to use these links on how to manage your transactions:

Let me know if you have other questions. Take care!

SvitlanaP · ‎May 24, 2021

Thank you, Catherine, for your quick response.

If there is a number of invoices to be adjusted, will it be possible to apply payments to several invoices in one go? Or each invoice should be processed separately?

Thank you again!

MichelleBh · ‎May 24, 2021

Thanks for the quick response, @SvitlanaP.

Allow me to share additional information about receiving invoice payments in QuickBooks Online.

Yes, the payments will apply in one go as long as you're using the bulk Received Payment. But if not, then this will process separately. See the sample screenshots below for your reference.

Also, if you're using Undeposited Funds in the Deposit to box, you'll want to deposit the amount into your register. For the complete steps, check out this article: Record and make bank deposits in QuickBooks Online.

For your future reference, you can run the Transaction List by Customer and Deposit Detail report one at a time. This way, you can review all the transactions you've entered into the system.

To learn more about how to run and customize reports, visit this page: Run reports in QuickBooks Online.

Drop a comment below if you have further questions about invoices. I'm glad to help you. Take care always.

SvitlanaP · ‎May 25, 2021

Thank you for your advice, it is very helpful!

But still, could you, please, explain, how comes it that transactions posted on the same date could appear in different aging periods in a report.

SvitlanaP · ‎May 25, 2021

Thank you for your advice, it is very helpful!

But still, could you, please, explain, how comes it that transactions posted on the same date could appear in different aging periods in a report.

ChristieAnn · ‎May 25, 2021

Hi there, SvitlanaP.

Welcome back to the thread, SvitlanaP. I'm happy to know that the details shared above were able to help you with your concern. With this, I'll ensure to provide further information on how aging reports work.

Aging reports present an overview of the customer's outstanding balances and those who missed paying their payments. Then, it also shows how much is still due and how long they’re past the due. That said, entries posted on the aging report depend on the terms set up. That's the reason the transactions posted on the same date could appear in different aging periods in a report. To view further details, you can open this article: Run accounts receivable aging report.

You can go to the Sales tab and review all customer transactions from there including the invoices. That way, you're able to check the terms set up so you can make any changes and view transactions posted on the same date with the same aging periods.

Here's how:

Click the Sales menu on the left panel.
Choose Invoices section.
Select each entry and click it to show the Edit invoice button.
Go to the Terms drop-down arrow and change it if necessary.
Hit Save and close.

You can click this article to see additional information on how the Sales page gives you a great at-a-glance view of the status of sales transactions: View sales transactions.

Please refer to this article to view detailed steps on how you can personalize your reports to focus on the details that you want to see: Customize reports in QuickBooks Online.

Should you need further assistance, please do not hesitate to post again by clicking the Reply button below. I'll be glad to work with you again. All the best!

SvitlanaP · ‎May 25, 2021

Thank you very much for your help!

MorganB · ‎May 25, 2021

I'm so happy to see you received the assistance you were looking for here in the Community, SvitlanaP. If you have a spare minute, there is some great info in these QuickBooks Tutorials about more ways to use your account.

You know where to come if you ever need a hand again in the future. Take care!

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Journal entries and aging reports