Working in QuickBooks is convenient as it is highly user-friendly. It compliments your desire to have an efficient system for higher profits and business performance.
However, there is always a remote chance of Human errors happening even while you or your accountant is using QuickBooks. Entering daily transactions, updating data regularly and catering to customer needs are some factors that might lead to a mistake in data entry.
In this article, we will know some common mistakes that might occur within the A/R and small open balances or open credits.
Also Read: How To Fix QuickBooks Unrecoverable Error?
Clean up of the data file is required often without taking help of the CDR tools. Also, the “CDR tool” will not be of assistance if a journal entry was entered into Accounts Receivable. If the deposits were filled in directly to A/R on the deposits and not in the Income account, then also the “CDR Tool “ will not be any help. Follow the below steps for manual cleanup.
An easy way to write-off small balances is when the payment is recorded in the “Receive Payments window.”
In the CDR, there is also a “Write Off invoices tool.” You can write-off invoices, statement charges or financial charges together from a single window.
NOTE: Use “fix unapplied customer payments & credits tool” before using this option. If you have credits available, a warning message will appear.
When you purchase items from vendor the Accounts Receivable increase. The two balances might offset each other. We have a couple of remedies available and which one to choose will depend upon the transaction volume.
You need to determine which balance is lower – the accounts payable amount or the accounts receivable amount. Based on the lowers, the Checks will be “written off” and the corresponding deposit will be made to A/R account for the same amount to offset the amount outstanding. Ensure to have the same amount for the check and deposit. The remainder in A/R or A/P is either the owed or due from the vendor or customer. The balance in the company account should always appear as $0.
Make a “credit memo” for the amount of the A/R that getting offset by A/R and a credit is issued for that bill for the same amount. Ensure that “credit memo and the credit” should be the same amount to create an equal offset. In the end, the transaction should net to $0 without having a balance in either of the accounts.
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