Question

Vendor/ Customer Deposits

Forum|Forum|5 years ago
June 24, 2021
1 reply
0 views

Hello,

I am having trouble correcting some errors that were left by the previous bookkeeper. She accidentally setup a customer as a vendor account. She posted their payments to our firm under the vendor account. Then, she setup the customer under a customer account and posted checks written from those accounts (this part was correct).

My question is how can I correct these transactions and update the customer's account if all of this happened in the previous period? Do I need to make a journal entry, or can I just move the transactions to the customer account from the vendor account?

QuickBooks Desktop

L

LeizylM

QuickBooks Team

Welcome to the Community, JBOfficeManager.

I'd be glad to share with you how to correct these transactions in QuickBooks Desktop.

Yes, you can use Journal entry to move the lumpsum amount in QuickBooks Desktop. But, this requires assistance from your accountant to guide you if what accounts will be affected.

If you don't want to use Journal entry, you need to delete and recreate the transactions one at a time.

To do that:

Go to the Center (Customer Center, Vendor Center, or Employee Center) in which the name currently exists.
Right-click the name and select Delete (Customer: Job/Vendor/Employee).

Learn more information about changing vendor, customer, or employee name types by checking out this link.

Here are some great references for the steps of deleting the transactions in the QuickBooks Desktop.

Please know that I'm just a reply away if you have any other concerns with your transaction in QuickBooks. I'd be happy to help. Thanks for coming and have a great day!

J

JBOfficeManagerAuthor

How would deleting or voiding these transactions affect the accounting equation? Does a payment from a vendor account reflect, in the same way, that a payment from a customer account would in the accounting equation?

R

ReymondO

Moderator

Good day, @JBOfficeManager.

Thank you for getting back to this thread. Allow me to join in this conversation and answer your queries.

Once you delete your customer's transactions, this won't affect the vendor's account. These two accounts are separate profiles, therefore they aren't connected with each other.

As suggested above, you have to delete each transaction and recreate them again. This way, they will be posted to the correct accounts. Simply follow the steps that were shared by my colleague LeizylM.

Before taking these steps, I'd also recommend reaching out to your accountant. They are the ones who can give you the right advice in correcting your books.

Additionally, you can also run several reports to tell where your company stands. These offer critical information about your business and finances.

Let me know if you need further assistance with this. I'm always around to provide answers and clarifications to your questions. Have a great day ahead and take care.

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