Need help resolving a Vendor Open Balance

2robertc · ‎October 16, 2020

Hi- This vendor and my A/P shows a credit balance of $(1,042,067)

Here's the Vendor Balance Details

I paid bills on 1/15/20 totaling $1,026,864 plus a $15,203 credit which totals $1,042,067

Before doing that, I reclassed $1,026,864 on 12/31/2019.

I'm hoping someone can help me figure out how to clear this vendor open balance.

Thanks,

Rob

MirriamM · ‎October 18, 2020

Hello again, @2robertc. Thanks for clearing things out.

You're right that the opening balance showing to the Vendor's account is due to the reclass created via Journal entry. Based on your screenshot, you have debited the Accounts Payable (A/P) account, doing so will show a credit available.

Since every business structure is unique, I recommend consulting with your accountant to determine the correct debit and credit account to use when reclassifying. To ensure your records are right when recording a journal entry.

To understand more about how A/P works, take a look at this article: Accounts Payable workflows in QuickBooks Desktop.

In the future, I'm attaching some links below which you may find helpful:

If there's anything else I can do for you, let me know by commenting below. I'd be happy to further assist you. Have a great day.

View solution in original post

AileneA · ‎October 16, 2020

I've appreciate the screenshots you've provided, 2robertc.

I want to help you remove the vendor opening balance by deleting it.

Once you create a new vendor and put an amount in the Opening Balance field, QuickBooks Desktop will automatically add a bill transaction for the vendor. To remove this balance, you'll have to delete the bill.

Here's how to do it:

Go to the Vendors menu, then choose Vendor Center.
Click the vendor's name.
On the Transaction tab, double-click the open bill.
Click the Delete button at the top, then OK to confirm.

Once done, the vendor's balance will show as zero.

The following article contains additional information about this: Write off customer and vendor balances.

I'm only a few clicks away if you need anything else. Thanks for dropping by and take care!

2robertc · ‎October 18, 2020

Hi AileneA - This Open Balance is not the result of an amount I put in the Opening Balance field of a new vendor. It has to do with the reclass I made before I processed the associated bills. Please let me know if you need additional screen shots or have additional questions. Thanks, Rob

MirriamM · ‎October 18, 2020

Hello again, @2robertc. Thanks for clearing things out.

You're right that the opening balance showing to the Vendor's account is due to the reclass created via Journal entry. Based on your screenshot, you have debited the Accounts Payable (A/P) account, doing so will show a credit available.

Since every business structure is unique, I recommend consulting with your accountant to determine the correct debit and credit account to use when reclassifying. To ensure your records are right when recording a journal entry.

To understand more about how A/P works, take a look at this article: Accounts Payable workflows in QuickBooks Desktop.

In the future, I'm attaching some links below which you may find helpful:

If there's anything else I can do for you, let me know by commenting below. I'd be happy to further assist you. Have a great day.

2robertc · ‎October 19, 2020

Hi MirriamM- Hope you had a nice weekend. That makes sense. Thanks for the advice.

Rob

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Need help resolving a Vendor Open Balance