Hello all Can anyone help please? I have taken on a client who uses Quickbooks Pro. Have discovered a few issues, 3 of which are:
1. In the aged debtors report there are some transactions for over 90 days for some clients that show minor amounts even though we know the client does not owe etc. We are only talking about a penny here and a penny there (presumably whoever inputted may have just made an input error perhaps) Some of the open balance figures show as a negative ( so this means too much has been paid?) and some show a positive(meaning the client owes?). My client wants me to tidy it up and make everything zero/only those that genuinely owe show but I'm just a bit concerned about making it worse. Not 100%sure what to do in QBs
Would the correct thing be to do a journal for each entry as follows: debit ( if a -ve figure) or credit (if a +ve figure)? the accounts payable which other account (s) are affected ? The sales account that the original invoice was allocated to?.
2 One of the entries shows a client as owing some money but then further down there is a journal to show the bad debt was written off. Although the transactions cancel each other out my client wants it removed so neither of these transacions appear in the aged debtors detail.
3.Also a stock take was taken at the beginning of the year but was not entered and they are about to round off this year with another closing stock take. How do I enter these balances?
I'm not a QB user so somebody may be able to give you a more definitive answer, but I would be tempted to post invoices and credit notes to clear those small balances. I would think the journals would still leave the balances on the individual customer ledger. So if theer is a couple of pence still on the ledger, do a credit and if theer is a negative balance put on an invoice. If the amounts rae small it will not be material so I would be happy with that.
On the account taht has been written off, I am assuming the invoice and the journal are shown on the custtomer account. Has the journal actually been put through as a credit note posted to bad debts rather than an actual journal? If so, can you not just pay one off against eachother as if it was a normal credit note/payment?
On the third issue, are you bookkeeping or doing final accounts? If you are just doing the bookkeeping I would speak to the acountants as to how they want you to enter this as there may be other year end adjustments that haven't gone on yet.
Amanda is the QB expert on here but I have started using it for one client and am learning!!!!
I'd agree with Rob re putting through dummy cr notes and invoices to write off the customer accounts which you know to be errors,you will also be able to dr/cr this to the correct nominal code (list in QB). You can't journal to a customer account only to nominal accounts.
Same sort of problem with No2 the journal has written off the transaction presumably using the sales and bad debt nominals (oops lists) but this does not clear the customer account which cannot be done with a journal. I thing that what you would need to do is to put a credit note through with a bad debt nominal code.
Sorry did see the post earlier but didn'[t have time to reply! Sheila is correct you need to raise dummy invoices and credit notes to clear of the balances etc, sounds like they have not been put on correctly inthe first place. If its a credit note, then do the credit to the customer, but to use the credit against the outstanding invoice you need to go to the customer onthe menu alont he top and drop down to receive payments, put in the customer with the outstanding invoice and the invoice amount will come up then look in the bottom right had corner and it will have a box there saying credits, click on that and the amount of crfeit will appear for that customer, click on it so its applied and click SAVE. This will automatically cancel out the invoice thus leaving no balance on the customers account.
Forgot to say on the dummy cr and invoices put a memo on it to explain what it is you are doing, just makes it easier to follow at a later date if you need to look anything up.
Regarding the stock speak to the accountants I expect it will be a journal, you may have to add STOCK to your COA depending which default one you are using. To add to the COA is easy to if you get stuck gives us another shout on here.
HTH A
-- Edited by Amanda on Wednesday 31st of March 2010 07:25:22 PM
