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QuickBooks Accounts Receivable Negative

QuickBooks Accounts Receivable Negative

QuickBooks Accounts Receivable Negative is one of the widely used accounting software enriched with several beneficial features. It streamlines the reconciliation process. However, while applying for payments in QuickBooks, users might face several issues. Accounts Receivable found negative is one of those issues. When the amount has been received through the client but failed to get applied to an invoice, it takes place. It is essential to know that unapplied payments or credit are not applied because they will create conflicts in the profit and loss reports. MyOnePro we will explore the reason and solution of the query in QuickBooks; why is account receivable negative? Also you can get complete details about QuickBooks Accounts Receivable so you can understand in better way.

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    Accounts Receivable Negative Number QuickBooks Issue

    What do you mean by negative accounts receivable in QuickBooks?

    Negative Account receivable is usually arising when user run a balance sheet. A negative A/R balance refers to the business owes an amount to its customer in the theoretical concept. For instance, customers are owed a refund. The Negative Account Receivable is generated through the Customer Payment window. This window is always used to credit the Accounts Receivable amount for a preferred customer. When the process takes place, it always creates a negative balance known as a credit balance in accounting parlance.

    What you can do when QuickBooks Accounts Receivable Not Matching With Balance Sheet issue comes during reconcile .

    In the normal Account Amount Receivable process, whenever a customer invoice is generated, it will raise the balance in the customer A/R amount, and the balance will display on the A/R aging reports. The customers use the customer Payment window for paying the invoice, and the payments will get updated on the invoice. QuickBooks set that particular invoice as paid and then delete it from the reports. Consequently, a positive balance will display means that the customer owes the business amount.

    Find The Entry Causes Accounts Receivable Negative Balance in QB

    Execute an A/R aging Summing to discover the amount which is creating the problem. To do this, here are the steps:

    • Locate Report
    • Click on Customers and Receivable
    • Hit on A/R Aging summary
    • Apply the ending date matching the balance sheet
    • Do a double click on each negative amount appearing there.
    • It will redirect you to the Customer Payment Window.
    • Here you can verify the invoices and check whether the payment is applied to any of them. According to it, you can create the invoice for the payment.

    Its very easy process MyOnePro explained all the steps QuickBooks Bad Debt Write Off which also help you to fix negative balance problem .

    Impact Of QuickBooks Accounts Receivable Is Negative

    When and Why Accounts Receivable negative happens in QuickBooks?

    Users might create the Account Receivable while posting the customer prepayments through the customer payment window. It is used to debit credits, Accounts Receivable, and a cash Account. This window is applicable to the customers having an invoice recorded in the books. However, when the customer payment window is used for customers who do not have any pre-existing invoice connected with it, then there is a negative Accounts Receivable balance.

    How Do I Fix A Negative Accounts Receivable In QuickBooks

    How can you prevent Accounts Receivable from being negative in QuickBooks?

    You have to perform the below-given modification to avoid the problem of Accounts Receivable appearing on the balance sheet:

    • Locate Customer Payment Window
    • Discover the checkbox named “This is a customer prepayment.”
    • If chosen, it will force the software to credit another Current Liability account connected with the customer rather than crediting Accounts Receivable.
    • Once the user is prepared to create an invoice, the QuickBooks will provide an option of offering the prepayment in the Apply Credit Window.
    • If the user selects the pre-payment, then the software will debit the other current liability account & credit the A/R account for the associated customer.

    The above process will keep the balance sheet clear to discover the clients having customer prepayments, and ease using Customer Payment windows. Consequently, there is no need of hiring an outsider to diagnose the negative Account Receivable conflicts that usually arise while using the balance sheet.

    Follow the process if you still getting Balance Sheet Out Of Balance QuickBooks Issue after following above all steps .

    Unable To Fix Negative Accounts Receivable QuickBooks Pro, Premier, Enterprise

    That’s all about guidance on the useful concept of QuickBooks i.e., why Accounts Receivable Negative! Hopefully, the above information gives the awareness of Account Receivable and why it appears negative. The Intuit QuickBooks 24/7 Support professional is there to address your confusion and provide you better assistance. You can do a live chat for immediate help or drop an email with your queries. The team is dedicatedly working; they will get back to you without any delay!

    8 thoughts on “QuickBooks Accounts Receivable Negative”

    1. general question. When we run out balance sheet standard report, we have a negative accounts receivable amount. I have processed a transaction to remove money from AR account, and on the Chart of Accounts it deducts the money, but the amount on the balance sheet doesn’t change. How do I get the balance sheet to show the deduction? using quickbooks 2019 for Mac desktop

    2. I am cleaning up my aging a/r I have two check that are showing how do I deal with this? I am using Pro 2012 I purchased the 2021 but I want to clean up a few things from previous bookkeeper

    3. How do I find unapplied payments in QuickBooks Premier when I don’t know which client they belong with Basically how can I just see all of the unapplied payments/credits that exists. Is there a report for this? I am looking for the steps to resolve uncategorized income in quickbooks desktop can you provide me with those steps as those I searched for on line seem to be for the online version of qb

    4. We ran a credit card back a while back, and it is from an company card. It is in our unapplied payment as it doesn’t go to any invoice but I need to apply it to the credit card to fund the bank account, but debit the credit card. Any help would be appreciated. Please note that this CC was run through Intuit Merchant account using Desktop 2021 Accounting Premier I believe

    5. I have just started a new company in QB and for some reason the opening balance of bank acct shows a totally diff amount of the one I entered. How do I change it? The opening balance is negative using desktop 21

    6. Can you please help me how to correct an opening balance equity with negative amounts? I think it may be a mapping issue with the software.

    7. I have a negative transaction balance but when I run the unpaid report it doesn’t show up there , Im so confused where the number is coming from but theres no way we have a credit for some of our vendors , using Quickbooks desktop pro 2020 ,

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