How to fix negative balance showing in account payables?
I had a bookkeeper working for us from long time and now she left the. When I checked the book found some negative balances in account payable. I have doubt in with some of the vendor’s accounts. Can someone help me to fix the negative accounts balance?
Greetings, thank you for bringing this issue to our attention. Accounts payable is a liability account. It is a representation of all the amounts that you send to someone like a vendor for bill made on the account. As a liability, it has a normal credit balance. If any transaction is incorrectly debited to accounts payable (also known as A/R) it could result in a negative Accounts Payable.
The cause for the negative accounts payable could be if somehow the paid bill got deleted or voided and the payment check is still in the records. It means that you have paid your vendor but QuickBooks is not able to find that payment source as the bill is deleted or voided. In QuickBooks, it will show that the vendor owes you some money. Since the bill payment check will remain in QuickBooks, it will create a negative balance in Accounts Payable.
There might be some outstanding transactions, new transactions for a connected account and sometimes there are duplicate transactions.
To find out the negative balance in accounts payable, you will have to check all the vendors who show a negative balance from the vendor list. Follow the steps provided in the following article to fix the negative accounts payable: Why does QuickBooks Show Accounts Payable In Negative?
Otherwise, you can call us at +1-855-875-1223 and receive consultation from the QuickBooks ProAdvisors.
