Can I settle Invoice with a Journal Entry?

Any transactions can be settled with journal entries, userrajiv-sahay.

When you say you want to settle an invoice, are you referring to an invoice that was paid successfully? If so, you can just use the Receive Payment function to close the invoice and record the payment. Here's a link for reference: Record invoice payments in QuickBooks Online.

If you're referring to an invoice that will no longer be paid, it is already considered as bad debt. With that said, we have ways to settle it without using a journal entry. You can find this article helpful regarding the process: Write off bad debt in QuickBooks Online.

If you're referring to a different way of settling the invoice, please provide us more information about it. We'll be right here to further assist you.

When we receive a payment from a client in form of cash, TT, CDC and up on clearing of the cheque we usually do Receive payment and adjust the invoice and the Statement of account is cleared for those invoices.

Example, it is 02.12.022 and customer has give me a cheque of date 30.12.2022. So I usually do a journal entry and show credit/ debit in PDC Receivable which reflects well in Balance sheet as well. On 30.12.2022 when we actually receive the payment we can do another journal entry with credit/ debit from PDC Receivable to Bank account.

Also, on say 05.12.2022 if the customer wants a refresh Statement of Account we are unable to give him a statement of account (Open Invoices). Like in above example the PDC against which invoices need to be removed from Statement will keep showing and PDC will show as negative balance. For internal record it is fine but sending such statement of open invoice to customer will be confusing.

Therefore, until 30.12.2022 till cheque is not honored is there anyway in QBO we can settle these invoices and remove from the statement of account without affecting the bank data in Balance sheet?

Nice to see your post here in the Community, lokeshshaw.

The nature of your concern requires help from an accounting expert. I suggest resolving this scenario in collaboration with your accountant or any other competent financial practitioner to ensure that everything is accurate. They can offer professional guidance on how to settle the invoices without affecting the bank balance.

You can also find an accountant by clicking on this link: Find an accountant.

We are finding more ways to improve the report options for our customers convenience. While we do, I encourage you to visit our QuickBooks Blog where we post the most recent feature updates of the product.

If there's anything I can help you with, feel free to drop me a reply below. Hope you have a good one.