Unpaid Invoices Reducing Balance of Operating Account

Let me help you sort this out, nkastner.

Typically, a business sends an invoice to a client after they deliver the product or service. This will add a journal entry as a debit in the accounts receivable account and a credit in the sales account.

To ensure your accounts are accurate, you might want to check the items used or if the new line item (an INV) is mapped correctly.

Here's how:

1. Click Lists at the top menu bar and choose Item List.
   
2. Look for the item used on the invoice and double-click the product to edit it.
3. From Income Account, make sure to select the correct category (in my sample screenshot, I used an income account type). I'd suggest consulting with your accountant to help and guide you on what type of account to use.
4. Once done, hit OK.
   

To know about more how inventory item works as well as steps on how to apply discounts to customer payments in QuickBooks Desktop, check out the following resources below:

• Understand Inventory Assets and Cost of Goods Sold.
• Record an Invoice Payment

If there's anything else you need, please let me know. I'd be more than willing to lend you a hand.

@nkastner

What item(s) is on the invoice?  Look at that item to make sure it isn't mapped to your bank account.  When you create an invoice, A/R increases and, if the item on the invoice is mapped to a bank account, it will decrease your bank account.