Why is Journal Entry in A/R beingmarked as "Overdue"?

Stoatmonster · ‎July 30, 2023

I recently received a payment from a customer to settle his outstanding account with the balance to be held in a Prepayments account.

To account for this, I clicked the Payment button, selected the two outstanding invoices in his name and then saved. This showed the two invoices paid with a credit balance in his Accounts Receivable.

I then created a journal entry to transfer the credit balance to his Prepayments (trust liability) account. That worked fine with a zero-balance appearing under his name in Accounts Receivable and with the correct balance showing in Prepayments.

The only problem is that the journal entry in his Accounts Receivable is marked as “Overdue”. How do I show this as cleared?

Screenshot below refers.

With thanks.

MJoy_D · ‎July 31, 2023

I can share some information about the journal entry status, @Stoatmonster.

The overdue status means that it has an open balance and is past the due date (based on the terms you set for the invoice). To remove that status, you'll have to apply that journal entry credit to an invoice.

Here's how:

Go to the + New button and choose Receive payment.
Select the customer.
Under Outstanding Transactions, select the invoice.
Under Credits, select the journal entry to apply it as a credit.
Click on Save and close.

Refer to this article for more information about applying a journal entry credit to an invoice in QuickBooks Online.

Here's also how you can create and apply credit notes or delayed credits in QuickBooks Online to reduce the balance on your next invoice.

Let me know if you need further help with your journal entry. I'm always glad to help in any way I can. Have a great rest of the day!

View solution in original post

MJoy_D · ‎July 31, 2023

I can share some information about the journal entry status, @Stoatmonster.

The overdue status means that it has an open balance and is past the due date (based on the terms you set for the invoice). To remove that status, you'll have to apply that journal entry credit to an invoice.

Here's how:

Go to the + New button and choose Receive payment.
Select the customer.
Under Outstanding Transactions, select the invoice.
Under Credits, select the journal entry to apply it as a credit.
Click on Save and close.

Refer to this article for more information about applying a journal entry credit to an invoice in QuickBooks Online.

Here's also how you can create and apply credit notes or delayed credits in QuickBooks Online to reduce the balance on your next invoice.

Let me know if you need further help with your journal entry. I'm always glad to help in any way I can. Have a great rest of the day!

Stoatmonster · ‎July 31, 2023

Perfect, many thanks indeed. Problem solved!

AlcaeusF · ‎July 31, 2023

Hi there,

I'm glad to know my colleague was able to help you with you concern about the customer payment. Please know that we're always available in this public space anytime you need assistance with QuickBooks Desktop.

You can click the Reply button below and we'll be sure to help out. Take care.