It is recommended that you check the customers receivable account to make sure the adjustment had the intended effect. Quickbooks in adjusting accounts receivable Repeat steps 4 to 6 for each invoice you need to void. A window will pop up asking you to confirm voiding the invoice. When the invoice opens, on the bottom left click on the ‘More’ button and select ‘Void’.ĥ. Select the customer whose receivable account needs to be adjusted.Ĥ. Repeat these steps for any invoices that need to be written off.Ģ. Select ‘Save & close’ to finish editing the invoice.Ĩ. Enter the amount being written off in the amount field.ħ. Make sure to leave a specific description to avoid confusion in the futue.Ħ. Insert a new item into the invoice and select ‘Discount’ for the item type.ĥ. Find the invoice or invoices that are outstanding and double click on one to open the ‘Create Invoices’ window.Ĥ. Find and click on the customer’s name whose receivables account needs to be adjusted.ģ. On the top menu bar click ‘Customers’ and select ‘Customer Center’ from the drop down.Ģ. You can either issue a discount on the bad debt in question or mark as a bad debt.ġ. If your accounting is done on a cash basis or the uncollectible invoice amounts will not significantly affect your gross sales there are two simple ways to clear out bad debts.
It is recommended that you check the customer’s receivable account to make sure the invoice was entered correctly and had the desired effect. The customer’s Accounts Receivable should now be zeroed. Finally click the ‘Save & Close’ button in the bottom right corner of the window to finish creating the adjustment invoice. If you need to change the date the adjustment will take effect, change the ‘Date’ field to the required date.Ĩ. Under the ‘Amount’ field enter the adjustment amount you wrote down earlier.ħ. It is recommended that you leave a detailed description of the adjustment in the ‘Description’ or ‘Memo’ fields to avoid confusion in the future.Ħ. Next under the ‘Item’ field in the invoice select the invoice item you created to make accounts receivable adjustments.ĥ. Select the customer’s account that you will be adjusting in the top left corner of the window with the ‘Customer Job’ drop down.Ĥ. On the top menu bar click ‘Customers’ and select ‘Create Invoices’ from the drop down.ģ. Begin by opening the ‘Create Invoices’ window. Before you begin write down the information for the customer account you will be adjusting and the amount you will need to debit from their receivable account.Ģ. Now you are ready to zero out customer over payments:ġ. Finally click ‘OK’ in the top right corner of the window to finish creating the invoice item. Select the account created in the previous step or the account that you would like to use.Ħ.
Next choose the account this item will go against in the ‘Account’ drop down. Something like ‘Overpayment Adjustment’ is recommended.ĥ. Select ‘Other Charge’ as the item type in the ‘Type’ drop down menu.Ĥ. Right click in the window and select on ‘New’ to create a new invoice item.ģ. On the top menu bar click on ‘Customers’ and select ‘Item List’ from the drop down.Ģ. This is the item that we will use to adjust customer accounts:ġ. With your expense account created, make a new invoice item. Finally click ‘Save & Close’ at the bottom of the window to finish creating the new account. It is recommended to use a specific name like ‘A/R Adjustments.’Ħ. You will use to write off the overpayments. Click ‘Continue’ in the bottom right corner of the window.ĥ. In the drop down next to this option select ‘Other Expense.’Ĥ. Select ‘Other Account Types’ at the bottom of the window. Right click in the window and select ‘New’ to create a new account.ģ.
On the top menu bar click on ‘Accountant’ and select ‘Chart of Accounts’ from the drop down.Ģ. Begin by opening the ‘Chart of Accounts’ window. If you haven’t done so already create a new ‘Other Expense’ account:ġ. This way if an adjustment needs to be changed or deleted it can found easily. It is recommended that you create an ‘Other Expense’ account specifically for this. The over payment will be written off into an expense account. We will be using an invoice to zero out over an payment in a customer’s receivable account.
Here is how to use Quickbooks in Adjusting Accounts Receivable. In either case these receivables will stay on the books unless they are cleared out. If your business uses receivable accounts to track customer payments chances are you have a few customers that have over payed or refuse to pay for products or services. Quickbooks in Adjusting Accounts Receivable