While making transactions in QuickBooks, there may be small balances as a result of any error, overpayment etc. It is better to clear them from your accounts than to collect and pay those amounts. In this article we are going to learn about the methods by which you Write Off Customer And Vendor Balances In QuickBooks. If you need any assistance then you can contact QuickBooks Support Phone Number 1-888-551-1563.The two methods are recommended to write off customer and vendor balances In QuickBooks. Consult your accountant before performing any of the below methods:

Option 1: Create A General Journal Entry To Write Off The Amount

Accounts Receivable

Create the appropriate journal entry.

  • Navigate to the Company menu and choose Make General Journal Entries.
  • From the Make General Journal Entries window, modify the date and fill in the entry number if required.

For Customer With Over Payment

  • Choose the Account field and click Accounts Receivable from the drop down list.
  • Type the amount under Debit column and go the Name column and choose a Customer Name from the drop down list.
  • Choose the offset account and put the amount under Credit column in the next line.

For Customers With Under Payment

  • Choose the Account field and select Accounts Receivable.
    • Type the amount in the Credit column and then go to the Name column and choose a Customer Name from the drop down list.
    • Select the offset account and type the amount under Debit
    • Select Save & Close.

Apply the General Journal Entry to the Existing Credit/Debit.

  • Go to the Customers menu and then choose Receive Payments.
  • Type the customer name in Received From
  • Select the invoice and choose Discounts & Credits.
  • Choose the available credit and click Done in Credits tab.
  • Press Save & Close.

Accounts Payable

  • Create the correct journal entry.
    • Go to the Company menu and choose Make General Journal Entries.
    • Change the date and type the entry number if required in the Make General Journal Entries

For vendor with over payment

  • Choose the Account field and click Accounts Payable from the drop down list.
  • Type the amount under Credit column and go to the Name column and click the vendor name from the drop down list.
  • Choose the offset account and enter the amount under Debit column in the next line.

For vendor with underpayment

  • Choose the Account field and select the Accounts Payable option from the drop down list.
  • Type the amount under Debit column and navigate to Name column and choose the vendor name from the drop down list.
  • Choose the offset account and Type the amount under Credit column in the next line.
  • Click Save & Close.
  • Apply the journal entry to the existing debit/credit.
    • Go to the Vendors menu and click Pay Bills.
    • Select the bill and choose Set Credits.
    • Choose the available credit and click Done in the Credits tab,.
    • Press Save & Close.

Option 2: Use Discounts To Write Off Small Amounts

  • You need to make an account and item to use when writing off small amounts.
    • Create a Charge off Account.
      • Go to the Lists menu and select Chart of Accounts.
      • Click the Account button and click New.
      • Choose Income then Continue.
      • Type Minor A/R and A/P Charge-Off in the Account Name field and click Save & Close.
    • Now create a Charge-off item.
      • Go to the Lists menu and click Item Lists.
      • Choose the Item button and click New.
      • Select Other Charge as Item Type and click then Continue.
      • Enter Minor Charge-Off in the Item Name/Number
      • Choose Non-Taxable Sales in the Tax Code
      • Choose Minor A/R and A/P Charge-Off in the Account field.
      • Press OK to save and create the item.
    • Now choose the situation that explains the small amount that you require to clear.

Customer Underpayment

  • Navigate to Customers menu and then choose Receive Payments.
  • Select the customer name in Receive From field.
  • Choose the invoice that you want to write off the amount.
  • Click Discounts & Credits.
  • Select the Discount tab:
    • Type the amount in Amount of Discount
    • Choose Minor A/R and A/P Charge-Off in the Discount Account
    • Click Done option to exit the Discount and Credits
  • Press Save & Close option to exit the Receive Payments

Customer Overpayment

  • Go to the Customers menu and choose Create Invoices.
  • Choose the name of the customer in the Customer : Job
  • Click Minor Charge-Off in the Item field and type the over payment amount.
  • Click Apply Credits.
  • Choose the credit in the Available Credits section (The amount of credit should be equal to the amount of invoice).
  • Click Done to close the Apply Credits
  • Press Save & Close to exit the Create Invoice

Vendor Underpayment

  • Navigate to the Vendors menu and click Pay Bills.
  • Select the bill that has the balance that you want to write off.
  • Choose Set Discount.
  • Select the Discount tab
    • Type the amount in the Amount of Discount
    • Choose Minor A/R and A/P Charge-Off in the Discount Account
    • Click Done to exit Discount & Credits
  • Choose Pay Selected Bills to exit the Pay Bills
  • Click Done in Payment Summary window.

Vendor overpayment

  • Enter a Bill that will offset the credit.
    • Go to the Vendors menu and choose Enter Bills.
    • Click the vendor in the Vendor
    • Select Minor Charge-Off in the Item field under the Items tab.
    • Press Save & Close
  • Now apply the available credit to the bill that you created.
    • Navigate to Vendors menu and select Pay Bills.
    • Choose the bill that you entered to offset the credit.
    • Click Set Credits.
    • Press the Credits tab and choose the credit.
    • Choose Done to exit Discount & Credits
    • Choose Pay Selected Bills to exit the Pay Bills
    • Now you have to select Done in Payment Summary

Get Technical Support

Hopefully, with the help of above steps you can write off customer and vendor balance in QuickBooks. It you face any inconvenience in performing the above steps then you can contact QuickBooks Support Number 1-888-551-1563 to talk to our experts. Our QuickBooks Customer Service advisors will help your to fix the issues in quick time. You can also contact QuickBooks Live Chat Support for assistance.

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