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BethC12
Level 1

Unpaid Bills to tie out to Balance Sheet A/P

The Balance Sheet has an amount in the Accounts Payable but all bills have now been paid.  This amount is carrying forward from prior years.  If I make a journal entry to write it off, it forces you to use a vendor name if Accounts Payable account is used.  Then, both the Balance Sheet and Unpaid Bills are increased.  Is there a way to fix this balance to actual?

3 Comments 3
JonpriL
Moderator

Unpaid Bills to tie out to Balance Sheet A/P

Hi @BethC12, I'll help make sure to tie out your report.

 

You're on the right track, creating a journal entry helps tie out your Accounts Payable and bills on the Balance Sheet report. It is said to reverse the journal entry to avoid increasing the amount of unpaid bills.

 

Use this article to learn more about fixing the Account Payable amount on your Balance Sheet report: Resolve Account Payable (A/P) Balances on a Cash Basis Balance Sheet in QuickBooks Desktop.

 

I also recommend contacting your accountant for guidance considering you're also preparing your business this year. They can help share the best practice to follow based on the needs of your business and accounting books.

 

Use the following links below if you haven't found someone you can work with: The QuickBooks Certified ProAdvisor.

 

I'm adding this reference for tips and guides to utilize in preparation for the coming year-end: Complete Certain Tasks in QuickBooks Desktop to Prepare for the New Fiscal or Calendar Year.

 

Don't hesitate to post a reply below if you have other questions or concerns about QuickBooks reports. I'm always around ready to help. Take care and stay safe!

BethC12
Level 1

Unpaid Bills to tie out to Balance Sheet A/P

I am working with a client who uses Desktop version of Quickbooks.  I did the journal entry and then reversed it.  It still makes you put in a Vendor name.  Then, it shows up to be paid in the Unpaid Bills section.  In following the processes that Quickbooks listed, it still does NOT fix the problem.  

JoesemM
Moderator

Unpaid Bills to tie out to Balance Sheet A/P

Let me get you back on track, @BethC12.

 

Allow me to chime in and share additional steps to get this resolved. Since you're using the Accounts Payable account this will require you to enter a vendor name. 

 

Meanwhile for the journal entry, to offset the positive balance of your vendor profile, you'll have to Debit AP using the credit asset or liability account. You can also contact your accountant if you're unsure about the accounts to use for the journal entry.

 

Here's how:

 

  1. Go to the Company menu and select Make General Journal Entries.
  2. Enter the Journal Date.
  3. The Journal Date is the date of the end of the period.
  4. On the first line, select the expense or liability account affected by the bill from the drop-down list in the Account column.
  5. Enter the amount in the Credits column.
  6. Enter the reason for this journal entry in the Description field
  7. On the second line, select Accounts Payable from the Accounts drop-down list. The amount should be automatically entered in the Debit column.
  8. Select the Vendor from the drop-down list in the Name column.
  9. Select Save and close.

 

For more details see this article: Create a journal entry in QuickBooks Desktop for Windows or Mac.

 

Once done, open the unpaid bill from the report and apply the journal entry as credit or discount for the vendor. Just make sure that that amount will be zero before saving the transaction. 

 

If it doesn't work it would be best to contact your accountant and work this together. They'll guide you on the accounts to use and provide other steps to get this fixed.

 

To keep track of your outstanding bills, you can run the Unpaid Bills Detail report. To achieve this, go to the Reports menu, and then select the said report from the Vendor & Payables section.

 

Also, to learn more about the Accounts Payable workflows you can use in QuickBooks Desktop. You can check out this article: Accounts Payable workflows in QuickBooks Desktop.

 

I've got your back if you have more questions about managing your bills or transactions in QuickBooks. Have a good one, @BethC12.

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