810 Quincy Street | Rapid City, SD 57701
(605) 342-5630
(605) 342-2172

QuickBooks Quirks – Accounts Payable Balances

Joanna-Franke-headshotDo you use the Accounts Payable feature in QuickBooks?  If so, you should periodically review the balance to make sure it is correct.  To do this:

  1. Go to Reports > Vendors & Payables > Vendor Balance Summary.
  2. Compare the balance listed for each vendor to the most recent bill received from that vendor.
  3. If you discover an amount listed in QuickBooks has already been paid but still appears on the Vendor Balance Summary, you may have improperly recorded the payment in QuickBooks. A common mistake is to enter the check through the Write Checks screen instead of the Pay Bills screen.
  4. There are 2 ways to correct this.
    1. If the check has not been reconciled through the Bank Reconciliation feature in QuickBooks, simply void the check, go into the Pay Bills screen and re-enter the payment through this screen. Be sure to use the date the original check was written and the correct check number.
    2. If you have already reconciled the check on the bank reconciliation, it would be best to go into the original check in QuickBooks and change the expense account to “Accounts Payable.” Then enter the vendor name under the Customer Job column. This will remove the balance from the Vendor Balance Summary report but one additional step is needed. Next, open the Pay Bills screen, select the invoice that was paid and click the “Set Credits” box. Make sure the credit is linked to the invoice then select “Pay Selected Bill.” This will show a zero amount under the amount to pay. Save the transaction.

Your Accounts Payable should now reflect the correct balance in QuickBooks.

Joanna Franke

Joanna Franke

CPA, QuickBooks ProAdvisor at Ketel Thorstenson, LLP
Joanna returned to Ketel Thorstenson in January of 2013. She worked at the firm for nearly 5 years prior to that and is originally from Rapid City, SD. She has a Bachelor of Science Degree in Accounting from Black Hills State University.
Joanna Franke

Latest posts by Joanna Franke (see all)

    Share
    Tweet
    Pin
    +1
    Share
    X