Trade In

Glad to have you here in the Community, @smcgrath23.

In QuickBooks Online (QBO), we can create a clearing account. It will use to move money from one account to another without moving it directly. This is like a holding account that holds your fund until you’re ready to move it.

Here's how:

1. Go to the Accounting menu.

2. Select Chart of Accounts.

3. Click the New tab.

4. Choose Bank for the Account Type. You may choose any detail type you want for your clearing account.

5. Type in the Name for the clearing account.

6. Make sure you do not type in any amount on the balance before clicking Save and Close.

To use a clearing account:

1. Go to the +New button.

2. Select Journal entry.

3. Add the Account Receivable (A/R) or Account Payable (A/P) account from which you are moving money.

4. Enter the Clearing account.

5. Save the Journal Entry.

6. Create a second journal entry.

7. Add the Clearing account.

8. Enter the AR or AP account to which you moving money, then click Save and close.

I’d also recommend working with your accountant for additional guidance. They can advise you on what account A/R or A/P account to use. If you’re not affiliated with one, you can check our ProAdvisor page and we’ll help find one from there.

Once everything is settled, you might want to read this link that serves as your guide in reconciling your accounts effectively: Reconcile an account in QuickBooks Online.

Let me know if there’s anything else you need help with managing your accounts in QuickBooks. I’d be more than happy to assist you. Take care, and keep safe.

Maybe I explained it poorly but this is not a solution to my trade in problem.  I don't need a clearing account.

Hello, smcgrath23. 

Thank you for getting back to us. When recording a trade-in, it depends on how you would like to show it on a report. If you treat it as an income, it'll show a negative amount on the report. While, if it's an expense, it'll show as a positive amount. 

On the other hand, the only way to do it if you want to reflect already created payable transactions in the trade is to do a journal entry. That way, you're able to transfer all amounts from one account to another. You can click this article to see the detailed steps: Create a journal entry in QuickBooks Online. 

I still suggest consulting an accountant for guidance so your account stays accurate. 

You're always welcome to post in the Community if you have other concerns. I'm always here to help you. Stay safe!