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Negative numbers in the ar statement for 3 invoices.....  

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(@jorge)
Joined: 12 months ago
Posts: 1
13/11/2019 1:33 pm  

Hello. I have a client who is on desktop QuickBooks pro. Anyways I am looking at his ar statement and from 2014 and 2015 he has open invoices in the ar statement with a negative line number as an open balance. He does not want me, of course, to go back to 2014 or 2015 to do bank recs and all that but instead to fix those items like 3 invoices only and get those out of the ar statement. 

 
If I try to delete that payment that is sitting there as a negative number it will be incorrect and I mess up the bank reconciliation ending balance YTD.  Can I just do a journal entry that would take care of these negative payments to take them out of the ar and move on?  He is pretty sure that the clients paid back then in 2015 these invoices and it seems that his old bookkeeper recorded these wrong and we are talking about $2800.00 in total
 
He has had already a CPA that did his corporate tax returns for all these years, so basically I am in 2019 now reconciling everything for this year now. 

 
What is your advice on this?. 
 
The other thing is that he wants next year to transfer his company from QuickBooks desktop to online plus and we would like to have a clean AR rather than have these negative numbers in the ar statement...... 
 
Thank you all and I appreciate your help. 

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(@bob-dunkel)
Joined: 10 months ago
Posts: 5
14/11/2019 1:24 pm  

Obviously I don't use QB but from what I understand a journal entry will not work because it has to tie to the A/R client.  Why not create a credit memo?  This should tie the A/R client to the account of your choosing(e.g. other income).  I don't use QB so....

Robert Dunkel, EA


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 Bruce
(@Bruce)
Joined: 10 months ago
Posts: 13
03/12/2019 5:42 pm  

I would be very leery of anything Mr. Dunkel says - - he lives behind the cheddar curtain. 

As for your situation, it sounds like you are showing an overpayment. Which creates a bit of a quandary. No, you don't have to do a complete reconciliation of cash. But you might want to figure out exactly what those payments represent.

If they are really overpayments, that money is owed to customer. If the customer can't be found, it then goes to the state as unclaimed property. (The most likely cause of such a situation is that something was prepaid but either it wasn't shipped for some reason or it was returned.)

If it was paid for services/goods that really were provided, invoice for that and then offset invoice against credit balance.


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