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Coffee Break |
The A/R (Account Receivable) Aging Summary report in QuickBooks is a great tool to use in managing the amounts due from your customers. Have you ever reviewed this report and found certain customers listed, even though their account balance is zero? This is an indicator that the payment was not applied to the customer invoice when originally recorded. Here are the steps to correct that problem:
ˇ Open the Receive Payments window by clicking the Receive Payments icon from the Home Page or by selecting Customers/Receive Payments from the drop down menu at the top of the screen.
ˇ Select the appropriate customer name in the Received From box.
ˇ Do not enter a figure in the Amount box (it should be zero). You are not receiving a new payment, but merely using this screen to apply a previous payment.
ˇ Click the Discounts & Credits button, mark the appropriate credit to apply it to the invoice, and select Done.
ˇ When you are returned to the Customer Payment screen after the credit has been applied to the invoice, select Save & Close.
Another issue that can be reflected on the A/R Aging Summary report is credit balances showing for customers. If the customer has given you a prepayment (ie. they have paid you before you have provided products or services to them), this may be correct. However, if this is not the case, most likely a payment has been received from a customer without an invoice to apply it to. Here are the steps to correct that problem:
ˇ Create the customer invoice with the appropriate information and select Save & Close.
ˇ If you are not prompted upon saving the invoice to apply the credit (ie. payment) to that invoice, you can follow the steps above to apply the credit to the invoice you just created.
Managing customer balances is a critical function for many businesses and using the tips above will allow help maintain accurate Accounts Receivable reports in QuickBooks.
If you need help implementing these tips or have other QuickBooks needs, please contact our Certified QuickBooks ProAdvisors at 317-888-2047 today!
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Coffee Break is an e-mail newsletter from QuickBooks Café, a division of Shaub CPA Group. QuickBooks is a registered trademark of Intuit, Inc. Although our staff members are certified by QuickBooks (Certified QuickBooks ProAdvisors), QuickBooks Café is not affiliated with Intuit, Inc. Information contained in this newsletter is for general purposes and may vary depending on individual circumstances.
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