QuickBooks Accounts Receivable Negative
QuickBooks Why Is Accounts Receivable Negative?
QuickBooks is one of the widely used accounting software enriched with several beneficial features. It streamlines the reconciliation process. However, while applying for payments in QuickBooks, users might face several issues. Accounts Receivable found negative is one of those issues. When the amount has been received through the client but failed to get applied to an invoice, it takes place. It is essential to know that unapplied payments or credit are not applied because they will create conflicts in the profit and loss reports. MyOnePro we will explore the reason and solution of the query in QuickBooks; why is account receivable negative? Also you can get complete details about QuickBooks Accounts Receivable so you can understand in better way .
Accounts Receivable Negative Number QuickBooks Issue
What do you mean by negative accounts receivable in QuickBooks?
Negative Account receivable is usually arising when user run a balance sheet. A negative A/R balance refers to the business owes an amount to its customer in the theoretical concept. For instance, customers are owed a refund. The Negative Account Receivable is generated through the Customer Payment window. This window is always used to credit the Accounts Receivable amount for a preferred customer. When the process takes place, it always creates a negative balance known as a credit balance in accounting parlance.
What you can do when QuickBooks Accounts Receivable Not Matching With Balance Sheet issue comes during reconcile .
In the normal Account Amount Receivable process, whenever a customer invoice is generated, it will raise the balance in the customer A/R amount, and the balance will display on the A/R aging reports. The customers use the customer Payment window for paying the invoice, and the payments will get updated on the invoice. QuickBooks set that particular invoice as paid and then delete it from the reports. Consequently, a positive balance will display means that the customer owes the business amount.
Find The Entry Causes Accounts Receivable Negative Balance in QB
How to discover the specific amount which causes the issue?
Execute an A/R aging Summing to discover the amount which is creating the problem. To do this, here are the steps:
- Locate Report
- Click on Customers and Receivable
- Hit on A/R Aging summary
- Apply the ending date matching the balance sheet
- Do a double click on each negative amount appearing there.
- It will redirect you to the Customer Payment Window.
- Here you can verify the invoices and check whether the payment is applied to any of them. According to it, you can create the invoice for the payment.
Its very easy process MyOnePro explained all the steps QuickBooks Bad Debt Write Off which also help you to fix negative balance problem .
Impact Of QuickBooks Accounts Receivable Is Negative
When and Why Accounts Receivable negative happens in QuickBooks?
Users might create the Account Receivable while posting the customer prepayments through the customer payment window. It is used to debit credits, Accounts Receivable, and a cash Account. This window is applicable to the customers having an invoice recorded in the books. However, when the customer payment window is used for customers who do not have any pre-existing invoice connected with it, then there is a negative Accounts Receivable balance.
How Do I Fix A Negative Accounts Receivable In QuickBooks
How can you prevent Accounts Receivable from being negative in QuickBooks?
You have to perform the below-given modification to avoid the problem of Accounts Receivable appearing on the balance sheet:
- Locate Customer Payment Window
- Discover the checkbox named “This is a customer prepayment.”
- If chosen, it will force the software to credit another Current Liability account connected with the customer rather than crediting Accounts Receivable.
- Once the user is prepared to create an invoice, the QuickBooks will provide an option of offering the prepayment in the Apply Credit Window.
- If the user selects the pre-payment, then the software will debit the other current liability account & credit the A/R account for the associated customer.
The above process will keep the balance sheet clear to discover the clients having customer prepayments, and ease using Customer Payment windows. Consequently, there is no need of hiring an outsider to diagnose the negative Account Receivable conflicts that usually arise while using the balance sheet.
Follow the process if you still getting Balance Sheet Out Of Balance QuickBooks Issue after following above all steps .
Unable To Fix Negative Accounts Receivable QB Pro, Premier , Enterprise
That’s all about guidance on the useful concept of QuickBooks i.e., why Accounts Receivable Negative! Hopefully, the above information gives the awareness of Account Receivable and why it appears negative. If still in doubt, then give a ring to MyOnePro team on toll free +1.800.301.4813 . The Intuit QuickBooks 24/7 Support professional is there to address your confusion and provide you better assistance. You can do a live chat for immediate help or drop an email with your queries. The team is dedicatedly working; they will get back to you without any delay!