The negative balance in Accounts Receivable (AR) on the Chart of Accounts (COA) is typically caused by one of two factors, Rkem.
The accounts receivable transaction has affected the balance sheet account, or there is an unapplied payment. Therefore, negative receivable balances typically arise from customer credits or overpayments.
If you are using QuickBooks Online (QBO), you can directly adjust the customer's accounts receivable balance. The customer should use credits to pay off the invoice through the Receive Payments feature. If there is a link attached to your invoice, please verify any credit transactions that can be applied to it. I suggest consulting with your accountant before proceeding.
You can also address the issue by creating a journal entry if there are no transactions to apply. For this process, debit the AR account and credit the Sales Income or another income account. However, for more accurate guidance, I recommend consulting your accountant.
For more information and processes in resolving the negative balance, please visit this article: Resolve accounts receivable balance in QuickBooks Online.
If you are using QuickBooks Desktop, I recommend running the A/R Aging Summary report to check the associated transactions and review the possible overpayments.
Here's How:
- Click the Reports menu at the top.
- Choose Customers & Receivables.
- Select the A/R Aging Summary report.
- Double-click the negative amount. Then, it opens the A/R Aging QuickZoom report.
- Open the payment that shows an open balance. Then, you're able to verify the payment amount entered.
For more information, please check this helpful resource: AR balance on the Chart of Accounts does not match AR balance on reports.
After completing the process, you have three options for handling the credit. You can click this article: Learn how to give your customer a credit or refund in QuickBooks Desktop for Windows.
You may also visit these articles for QBO and QuickBooks Desktop to guide you on matching your bank and credit card statements:
If you have any other questions, you're always welcome to revisit this thread and leave your queries below.
