Ever experienced a negative accounts payable balance in QuickBooks? This connotes the existence of a credit balance paid by the company as against the amount to be originally paid. It may show up in case some of the original bills are inadvertently deleted. As such, some of the checks remain existing and show up in the form of negative accounts payable in QuickBooks. There are multiple avenues to get this issue fixed, out of which the most effective one involves the creation of a Journal Entry for crediting the accounts that are affected. This will zero out the balance and will thus effectively fix the issue.
Main causes of Negative Accounts payable balance in QuickBooks
To know why does QuickBooks show accounts payable in negative, the primary contributors are:
- After the creation of the bills and the associated checks corresponding to those bills, the bills got accidentally deleted by the user.
- The issue may also invoke if the payment checks are not being sorted and remain as such.
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Procedure to Annihilate Negative Accounts Payable Balance in QuickBooks
Checkout the following procedures in order to resolve the rectify the Negative Accounts Payable Balances in QuickBooks.
Procedure 1: Creating a journal Entry
Creating a new journal Entry helps in zeroing off the account. The easy guidelines given below should help:
- To start off, click on the ‘+’ New icon.
- After that, click on Journal entry.
- Provide all the details for the creation of the journal entry, and following that, click on Save.
Procedure 2: Entering bills
The steps to enter the bills are enumerated as under:
- Click on the Reports tab.
- After that, hit on the Vendors & Payables option.
- Soon after, click on the Unpaid Bills option.
- The previous action will reveal a detailed report. The user should check the report for the negative amounts, and once identified, double-click on the same.
- Upon double-clicking the report, a bill payment check will show up. Notably, no bill will be visible herein.
- Users should keep this window open, and subsequently, head to the Vendors tab.
- Herein, click on the option to Enter Bills.
- Enter the exact amount of the bill for the vendor, as mentioned on the check.
- Now, move to the original bill. Herein, provide the correct date and other particulars.
- Upon double-checking all the details carefully, hit on the Save button.
- Once all the bills are entered, close the window.
- Now, maximize the bill payment check window opened earlier and verify the changes made in the bill amount are reflected in this window.
- Now, retrace to the Unpaid Bills Details report and check for any negative accounts again.
- The negative accounts payable issue should be resolved by now.
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Culminating the article!
This article offered effective measures to fix negative accounts payable balance in QuickBooks. Just in case the issue pops up again, it is advised that users contact our QuickBooks support experts at 1-800-761-1787 and get their queries sorted out. Our advisors are available round the clock to help you with assorted and multifold troubleshooting methods to fix all your accounting issues.
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