Can I change the default A/R or A/P account in QuickBooks Online
QuickBooks Online (QBO) is not designed to work with multiple Accounts Receivable (AR) and Accounts Payable (AP) accounts. The initial AR and AP accounts, or those selected during conversion, will be the default accounts. We encourage our customers to merge their accounts payable and receivable accounts. For more information on merging accounts, please see Merging accounts, vendors, or customers. If division of open payables and receivables are needed use one of the following options…
You may see two accounts for UNAPPLIED cash payments if you report Profit and Loss on a cash basis. It will automatically trigger to these two accounts simply because you have entered certain deposit and payment transactions differently than normal flow in QBO.
These two accounts are automatically added to the Chart of Accounts when the new company file is created. You can’t delete or change these two accounts.
Here is the main reason that will trigger these two account types in QBO:
Triggers “Unapplied Cash Payment Income” when the date of the customer deposit date is before the invoice date it’s applied to.
Triggers “Unapplied Cash Bill Payment Expense” when the date of the vendor payment date is before the bill date it’s applied to.
Example of “Unapplied” Customer Deposit and Vendor Payment transactions
Changing “Invoice” and “Bill” dates to be prior to payment dates should work for most transactions in this account. However, there may be other unknown circumstances where the issue may not be easily fixed. In that case, you will need to analyze each transaction and resolve the matter. Or get help from the expert.
This video will show how to fix “Unapplied Cash Payment Income” and “Unapplied Cash Bill Payment Expense” on a cash basis Profit and Loss report.
When you enter a check (create + sign > check), there is a memo section on the bottom left the side of the check (see attachment below). If you have text entered in that memo area, it will print on a check.
However if you enter a bill (create + sign > bill), even if you’ve entered text entered in that memo area, it will not print on the check when select pay bills (create + sign > pay bills).
If you need to print a fixed memo line like the account number or a specific memo line message on a check print, you can select “account number” field on vendor information page (see attachment below). That way it will print the same memo line on specific vendor checks all the time.
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I followed the refund by a vendor. I entered as a deposit. But then it does not show in the vendor’s transaction listing. How should I really enter this type of transaction?
At this point, they do not have have any designated way to record this transaction. It is just work-around approach to show in the Vendor Center’s transaction listing.
#1 Create Vendor Credit
From the home page screen
Select “Vendor Credit” tab under Vendors heading
Choose a vendor
Make sure account selection (that be entered as account for credit entry) is the same as original account. This is to show applying credit to the same account. For example, you bought printer and expensed it to Computer Expense account . Returned it and received refund for the returned item. Use the same account to credit the refund from the vendor.
#2 Show Bank Deposit for Refund
From the home page screen
Select “Bank Deposit” tab under Others heading
Choose Bank account for deposit
Received From = Name of Vendor from the drop down list who gave you refund
Account = Accounts Payable from the dropdown chart of account
Amount = refund amount deposited to the bank
Enter other related information
#3 Unncessary extra step but got to do it
GO back to Vendors Center (blue navigation bar > Vendors > Locate specific Vendor), you will notice “1 Open bill” message under Pending Bills for that Vendor. This could be flawed in QBO design at this time.
Select “Make payment” button under “Action” column
New “Bill Payment” screen will open
You will notice in and out with zero amount transaction
Change Ref number to “blank”
Save and Close
“1 Open Bill’ message is gone now.
Again, this is unncessary step in new QuickBooks Online.
How should I really enter refund by a Vendor in new QuickBooks Online QBO
Do not use “Paying Bills” feature when you want apply a specific vendor credit.
It seems there is even a design flaws on “Paying Bills” feature when it comes applying a specific vendor credit when you’ve multiple vendor credits in Vendor’s account. Credit column provides no ability to select specific reference to available vendor credit.
Alternative solution is to create payment Check from the Vendor’s Center.
From the home page screen
Go to blue navigation bar on the left
Select Vendors tab
Select Vendor that needs to be paid
Select checkbox of “Bills” need to be paid and also select checkbox of Vendor Credit to apply against this payment
GO to Create New button (far right) and select “Check” from the drop-down
It will take to new Check#To Print screen
Go to far right and select “Add All” under “Add to Check”
It will show paid check amount with outstanding bills as well as specific referenced credit
Choose “Print Check” at the bottom
Choose Preview and Print (bottom right corner)
Select Print button
Vendors – how to apply a specific vendor credit against vendor bill payment in new QuickBooks Online