Ronika Khanna shows how to clean up QuickBooks Online's Accounts Receivable aging report when invoices are offset by journal entries instead of actual payments. Use Receive Payment to apply a zero-dollar transaction and remove the $0 line item from your aging summary.
Hello everyone, my name is Ronica and today I am going to show you how to clear a zero dollar balance off of an accounts Receivable aging report. And if you're anything like me, and granted I am an accountant.
I find it a little irritating to see a balance Even though it's $0 and it has no impact on the aging report.
It still bothers me. The fix is very simple and I am going to show you exactly how to do that. So first let's go to reports.
And we are going to pull up the accounts Receivable aging summary. And you'll see here that I have an invoice, it's 90 days old from Scarlet Co. And I have a credit to this invoice. And this could be a credit, could be a payment often done by journal entry. And when you reduce or pay an invoice via journal entry, it doesn't actually apply as a payment directly as it would through the banking download. So I have a $0 balance. This has been fully settled but, but it still shows up here. So let's see how to fix this. We're going to go to customers and you're going to either do a search if you have lots of customers for Scarlet Co.
And here you will see in this section that you have this amount, the 2542 listed as an overdue payment but there's no open balance. So that means It's a $0 balance. It just the payment itself hasn't been properly applied. And as mentioned the fix is very simple. So let's do that. We're going to simply click on receive payment against the overdue invoice. When we do that we see that QuickBooks is fact finds the journal entry that was made to clear this balance to pay this balance in this case. And it sets up a zero dollar payment. So it's essentially just offsetting it against the credit. So just make sure you choose the date. If you're doing a year end cleanup, for example, then you might want to use your year end date here. And so it will no longer show up on the accounts Receivable aging summary. And the deposit to account can literally be anything because this amount is zero and it's important to make sure that this is in fact zero or agrees to whatever net deposit that you want to do in this case. So, so this all looks good to me and I am simply going to save and close and you'll see this no longer appears and it is reflected as closed. And if we go back to our reports and our accounts receivable aging summary, you can see it is actually gone. So that is the conclusion of this very short tutorial. I hope it was helpful. If you have any questions, don't hesitate to leave a comment. And of course, as always, please like and subscribe. Have a great day.
