Many business owners using QuickBooks don’t understand why negative balance arises in Accounts Payable (A/P). Here is the answer to it. A negative balance in Account Payable sometimes means that bills were entered and checks were written against those bills but due to some reasons the original bills got deleted or removed. The bill payment checks remain unfilled or hanging in the system, showing a negative balance in the Accounts payable. Before enhancing this topic further, we will first understand in detail about the negative accounts payable.
A negative liability appears in the balance sheet in case a company pays off more than the amount required by the liability. They often appear on the accounts payable register as credits. Technically, a negative liability is a company asset and should be treated as a prepaid expense.
When you see a negative balance in the Accounts Payable or if you deal with vendors who have a negative balance in the vendor’s list, go to the report’s menu and choose vendor’s and payables. In addition, you have to select an unpaid bills detail report. Scan the report and check for the negative amounts. If you find any, then double click on them. After double-clicking, a bill payment check will open. Then, look at the bottom part of the screen, the bill should be there. Place a check mark next to it and then enter the correct amount (amount of the check). Then, click save and close. After this, QuickBooks will ask if you are sure about saving the transaction which you have entered. Click on yes.
After that, go to the Unpaid Bills Detail Report and click on refresh. The negative amount on the report should have gone by now. You have to follow these above steps for all the negative amounts you notice in the report.
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Many people often face this issue when their QuickBooks online register balance and the actual balance do not match in QuickBooks online. Well, it is not a big issue. There are various reasons for a balance in QB Online could vary from the bank balance.
To know more about QuickBooks accounts payable and to resolve various QuickBooks issues contact QuickBooks Certified experts at QuickBooks Help Desk Phone Number.
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