QB breaks the accounting rules, customer credits (which is a liability) are kept in the A/R account.

So any negative amounts you have in A/R should be posted against a customer invoice

Thank you, I understand.  My problem is how to correct these transaction.

Thank you for providing the solution.  Appreciate your help

my issue is these payments showing a negative in my aging ar report are not in fact credits. they were applied to invoices last winter and zeroed out.  recently checking the ar report i found the negatives as if they were overpayments. that is absolutely not true. I do have the bank linked and not sure if they are duplicating. please advise and help me to stop this from continuing to happen

thank you

Thanks for jumping in to this thread, saratoga.

An overpayment will cause a negative Accounts Receivable. Since you have your bank linked with QuickBooks Online (QBO), let's make sure to match the transaction instead of adding them to avoid duplicates.

Use the Find Match option to display all the possible matched transactions. To do that, follow the steps below:

1. Go to Banking and select the Banking tab.
2. Click Find other records button.
3. In the Match Transactions window, put a check mark on the transactions that should match to the downloaded transaction.
4. If the transaction you want to match is outside the date range displayed, update it. Select the date field to manually change the From and To dates.
5. Select Save if the total amount of both transactions is the same.
6. Click Save.

Once done, the transactions will now show under the In QuickBooks tab. This article serves as your complete guide on how to add and match downloaded transactions in QBO: Add and match downloaded banking transactions.

You can also have these links about the reconciliation process in QBO:

• Reconcile an account in QuickBooks Online
• Learn the reconcile workflow in QuickBooks

The Community is always open if you have other questions. I'll be around to help. Have a good one.

I'm working with a client that goes through a bonding company to be able to do big projects. They are wanting an accrual Profit and Loss that includes Accounts Receivables but I've tried to reflect different ways and it still doesn't show up on the report.

I appreciate you for joining the thread, @jijuvera. Let me share with you some insights about the Profit and Loss report and how you can get the details of your client's Accounts Receivable (AR) entries.

The P&L report displays all of the income and expense transactions recorded in QuickBooks. Thus, adding AR transactions isn't possible. The good news is, you can use the Balance Sheet report to get the information you need.
 

Here's how:

1. Sign in to your QuickBooks Online (QBO) account.
2. Click on Reports at the left pane, then look for Balance Sheet or Balance Sheet Detail.
3. Open the report, the go to the Customize button to get the customization you need.

For more tips while running these reports, you can open these articles:

• Understanding Profit & Loss Statement: Income, Cost of Goods
• What is a Balance Sheet report?

Just in case you want to save your reports for future use, you can mail, print, or export them to Excel. You can check out this link as your guide: Run reports in QuickBooks Online. From there, go to the Print reports, Email reports, and Export reports sections.

If you have any other follow-up questions while running QuickBooks reports, let me know by adding a comment below. I'll get back to you as soon as I can help you again. Keep safe!