The financial reports for cash sourced deals should not display the account receivable AR and account payable AP balances. But as we all know that QB is an accounting program, and cash-based financial reports show the AP and AP balances in QB.

We will discuss all the important methods to when AP and AR balances are displayed on your cash basis balance sheet (CBBS) report. We also explain how to erase them from the list. The following things will be covered in this article:

  • Steps to create a general journal entry to erase AR and AP balance from a cash-based balance sheet on the ending day of the reporting period.
  • Steps to restore the general journal entry on the starting day of the next reporting period.

Steps To Delete Accounts Receivable

Create a general journal entry to delete the account receivable from the CBBS on the last day of the reporting period.

  • Select the option Company from the QB main menu. Then, click on Make General Journal Entries.
  • Enter the date and the entry number for the newly created general journal entry.
  • To select the offset account, select the Account option from the 1st line. Ensure the offset account is either the income account or an asset account. It should not be the account receivable account. You can discuss this with your accountant if you are stuck on the step to select the offset account.
  • Type in the amount in the Debit field.
  • Choose the Select Account Receivable from the 2nd line.
  • Type in the amount in the Credit field.
  • Give a name to Account Receivable in the Name field.
  • Hit the Save button. Important: when you are creating AR or AP accounts, saving the process at these steps is very important.

Create a reversing entry on the first day of the next reporting period.

  • Click on the Company from the QB main menu. Then, click on Make General Journal Entries.
  • Find the Journal Entry you created.
  • Change the date for the 1st day of the next quarter. Hit No option if you get a prompt that asks to Save.
  • Tap on the Reverse option on the top of the Journal Entry.
  • Hit Save & Close.

Steps To Delete Accounts Payable

Create a general journal entry to delete the account payable from the CBBS on the last day of the reporting period.

  • Select the option Company from the QB main menu. Then, click on Make General Journal Entries.
  • Enter the date and the entry number.
  • To select the offset account, select the Account option from the 1st line. Ensure the offset account is either the income account or an asset account. It should not be the account receivable account. You can discuss this with your accountant if you are stuck on the step to select the offset account.
  • Type in the amount in the Credit field.
  • Choose the Select Account Payable from the 2nd line.
  • Type in the amount in the Debit field.
  • Give a name to Account Payable in the Name field.
  • Hit the Save button. Important: For AR or AP account operations, this step is needed.

Create a reversing entry on the first day of the next reporting period.

  • From the QB main menu, follow Company> Make General Journal Entry.
  • Find the Journal Entry you created.
  • Edit the date for the 1st day of the next quarter. If it asks to save, tap No.
  • Tap on the Reverse option on the top of the Journal Entry.
  • Hit Save & Close.

When the A/P or A/R accounts are used in the journal entries or any transactions, you have to add a name to that. This helps to create A/R and A/P accounts without a flaw. This ensures that the total of these transactions tally with main Accounts Receivable and Accounts Payable.

Contact QuickBooks Tech Services

This given information is necessary to understand all the A/R and A/P related operations to be performed in CBBS along with General Journal Entries. CCP does not cover these solutions. If there is not any active support plan, then ensure to provide correct guidelines before you begin with the given solution. To get QuickBooks Technical support, you can connect with the certified QuickBooks Experts of supportforerror on their toll-free QuickBooks Support Phone Number +1866-656-1012 for additional assistance.