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craigoasis
Level 1

Hi, When I edit customer opening balances, it creates an invoice with a product code/service and not allocated to A/R. It assumes it as income.

 
8 Comments
JonpriL
Moderator

Hi, When I edit customer opening balances, it creates an invoice with a product code/service and not allocated to A/R. It assumes it as income.

Hello @craigoasis,

 

Let me help share how an opening balance of your customer is posted on your accounts in QuickBooks Online.

 

Normally, creating an opening balance of a customer will create an invoice. You're on the right track, one of the source accounts of the item used in the transaction is your income account.

 

But it'll also post the same amount of transaction in your accounts receivable account. To check, you can open the transaction journal of the opening balance to determine its source account. Let me show you how.

  1. Go to Sales.
  2. Select Customer.
  3. Open the customer's profile with whom you've edited the opening balance.
  4. On the list of transactions, select to open the transaction in question.
  5. Select More.
  6. Click Transaction Journal.

In the same manner, here's an article you can read to learn more about your customer's opening balance: Setting up a customer opening balance.

 

On top of that, I've also included this reference for a compilation of articles you can use while working with us: Manage Customers and Income for QuickBooks Online.

 

If there's anything else that I can help you with, please let me know in the comments sections below. I'll be here to lend a hand.

craigoasis
Level 1

Hi, When I edit customer opening balances, it creates an invoice with a product code/service and not allocated to A/R. It assumes it as income.

Hi, Thanks for your response.

On selecting the transaction, I'm not seeing "More"

On the link, I only see Products and Services, no other accounts available.

craigoasis
Level 1

Hi, When I edit customer opening balances, it creates an invoice with a product code/service and not allocated to A/R. It assumes it as income.

Found, More and Transaction Journal, but I cannot edit product and services to list just an A/R.

MirriamM
Moderator

Hi, When I edit customer opening balances, it creates an invoice with a product code/service and not allocated to A/R. It assumes it as income.

Thanks for keeping us updated, craigoasis.

 

When you set up an opening balance to a customer, the accounts impacted are income and Accounts Receivable (A/R) or Trade and other Receivable accounts.

 

To edit the account that the opening balance is assigned to, here's what you'll need to do:

  1. In the left menu, click Sales
  2. Go to the Customers tab.
  3. Locate and click the customer's name.
  4. Select the Opening Balance Invoice.
  5. In the Product/Service column, select the ▼ dropdown and choose another item.
  6. Click Save.

Once done, try to open the transaction journal again by following the steps provided by my colleague above. 

 

For more details about this process, see this article: How to enter outstanding balances for customers and suppliers.

 

If there's anything else you need help with about this or any QuickBooks related, feel free to leave a comment below. I'm more than happy to answer it for you. Have a great day.

craigoasis
Level 1

Hi, When I edit customer opening balances, it creates an invoice with a product code/service and not allocated to A/R. It assumes it as income.

Hi,

 

This is what I'm seeing... Changing product or service, doesnt allow other accounts but only product and services. ie not allowed to edit A/R.

Screenshot 2021-02-19 at 05.42.42.png

So then I click on more and Transaction Journal, see the below.. 

 

Screenshot 2021-02-19 at 05.43.37.png

Are you saying this is right? but its increased my income, by the same amounts and the account cloud services account. Which is not correct, its not income but an opening balance?

 

Please advise.

Catherine_B
QuickBooks Team

Hi, When I edit customer opening balances, it creates an invoice with a product code/service and not allocated to A/R. It assumes it as income.

Hi craigoasis, 

 

When you enter a customer opening balance, it is the same as you're creating an invoice. Income and Accounts Receivable (A/R) or Trade and other Receivable accounts are impacted as mentioned by my colleagues.

 

However, if you're referring to an opening balance as an available credit on the customer's profile without affecting the income account, you can create a bank deposit. You can delete the invoice that was created and follow these steps on how to create a bank deposit. 

 

  1. Go to the +New button and click Bank deposit
  2. From the Account, select the bank account you want to put the money into.
  3. Under the Add funds to this deposit section, select the customer's name and select Account Receivable under ACCOUNT.
  4. Enter the amount and then Save and close.

You can use these references in handling customer transactions: 

 

Let me know if you have other questions. Take care!

craigoasis
Level 1

Hi, When I edit customer opening balances, it creates an invoice with a product code/service and not allocated to A/R. It assumes it as income.

Sorry but I'm really not grasping this.

Its not "income" its an opening balance. So now my sales for the year will be opening balance plus my sales for the year. My profit for the year will show extremely high.. Which is not right.

Plus the product/service I select will show a massive incorrect amount, ie if use Travel. its going to show Travel as a huge amount vs what it is actually.

 

What am I missing?

 

 

JessT
QuickBooks Team

Hi, When I edit customer opening balances, it creates an invoice with a product code/service and not allocated to A/R. It assumes it as income.

You're not missing anything, craigoasis.

 

I'm happy to clarify why you have an invoice for an opening balance and why you cannot select an account.

 

First off, we can only select products and services on an invoice.

 

Secondly, Your customer's opening balance is a receivable income. Therefore, QuickBooks will show it in the form of a receivable transaction and that is an invoice. An invoice has at least two posting accounts, and these are the Accounts Receivable and the income accounts assigned to the items.

 

Please note that we follow double-entry accounting, which means that each transaction affects two or more ledger accounts. Therefore on an invoice or opening balance, you'll have the A/R and the income accounts because you cannot simply declare an opening balance as a receivable amount. You also need to categorize it.

 

On the other hand, if you need references related to customers and sales, just click Help and search for the topics you need help with.

 

Visit us back through this thread if you have additional questions.