Hello, akhila-ambalappu.
Let me share some details information about clearing your General Ledger in QuickBooks Online. Deleting the ledger will remove the transaction entirely in QuickBooks. Before deleting your General Ledger, there are things we need to know before making an account inactive:
- You cannot permanently delete an account, except for merging one account into another.
- Making an account inactive doesn't remove its transactions. Transactions associated with any deactivated (deleted) account stay intact.
- You can't edit a transaction associated with an inactive account. To be able to successfully edit/delete the transaction, you must restore the account first, then go to the register and delete the individual entry. After that, analyze the account and correct it to a zero balance before deactivating it.
- Before making a balance sheet account inactive, correct the balance to zero. If the balance is not zero, QuickBooks Online makes an automatic adjustment entry to zero out the non-zero balance of the inactive account. The automatic entry posts to the Opening Balance Equity account, which is the equivalent of posting to previous years. The entry could potentially cause incorrect tax info to be filed.
For more details, please refer to this article: Make an account inactive on your chart of accounts in QuickBooks Online.
To delete your GL, Here's how:
- Click the Accounting, and select Chart of accounts.
- Locate the account you want to remove.
- Under Action click the drop down and select Inactive or Delete.
- There are accounts that you cannot delete, which I mention above.
For future reference about the accounts in QuickBooks Online, read through these articles:
You can always get back to us whenever you need help in your QBO account. The Community is always here. Have a great day and stay safe.
