Payments

Hello there, @trlane. I appreciate you for joining this thread.

You'll need to set up a clearing account to clear out bills from the previous years. When doing this process, it's similar to setting up a bank account in the Chart of Accounts (COA), but without an opening balance. Here's how to do it:

1. From the Lists menu, select Chart of Accounts.
2. Click the Account drop-down arrow, and select New.
3. In the Add New Account window, select the Bank radio button.
4. Select Continue.
5. In the Account Name field, enter Clearing Account.
6. Make sure not to enter an opening balance.
7. Once done, click Save & Close.
   

Then, use the clearing account when creating a journal entry. Here's how to accomplish the process:

1. Go to the Company menu. Then, select Make General Journal Entries.
2. Add the AP from which you are moving money.
3. Then, add the Clearing account. Once done, save the Journal Entry.
4. You'll need to create a second Journal Entry.
5. Add the Clearing Account.
6. Add the AP account to which you moving money.
7. In either Pay Bills or Receive Payments, link the Journal Entries together.

For additional details, you can read through these articles. Each of them provides information about the process of handling entries and vendors transactions.

• Manage vendors and AP.
• Create a journal entry in QuickBooks Desktop for Windows.

Visit again if you have other questions. The Community people are always here to assist and provide some details you need. Take care and have a good one!