Before you start with reconciliation, make sure you back up your company file. Step 1: Review your opening balance. Reconcile an account in QuickBooks Desktop.Step 4: Compare your bank. Step 3: Start your reconciliation. Step 2: Prepare for the reconciliation.
Most of the outstanding bills should be relatively current. The Accounts Payable Aging Summary report provides a quick snapshot of the outstanding bills as of a specific date. Well as various aspects of QuickBooks banking functions including reconciliation.The quickest and easiest way to identify Accounts Payable errors in QuickBooks ® is from a review of the Accounts Payable Aging Summary report. To deposit payments directly into an account, you cant edit or delete a payment. The monies belong to the clients/third parties and cannot be co-mingled with company funds.Select QuickBooks Pro/Premier at the top right (beside the country). The purpose is to safeguard these funds from loss. Attorneys and real estate agents often hold client or third party funds in trust and are responsible for tracking the receipt and dispensation of these funds. Best font editor for macA vendor that appears on the report and has a zero balance in the total column indicates that all transactions have not been “linked” or credits have not been applied properly.Excessive amounts in the >90 days column is an indication of either a data entry issue or a larger issue that would require involvement of the management of the business.Fix Unapplied Vendor Payments and CreditsIn Client Data Review, the Fix Unapplied Vendor Payments and Credits tool corrects accounts payable posting problems. The bank account balance appears correctConsistently old outstanding bills can also indicate a profitability or cash flow issue. Accounts Payable balance is high with many aged billsAccuracy of their book bank balances (new for the QuickBooks 2008 version, Accountant's Copy feature will allow you to reconcile bank accounts for your. (Account Type: Other Current Liabilities Detail Type: Other Current Liabilities (not an Accounts Payable account)) You will reconcile the product returns s to the vendor credit memo and then move the product costs from this account to the true payable account as a credit. Typically, the client would record the check to the same expense account used when the bill was recorded resulting in expenses being doubled. Checks and Vendor Credits are applied to bills in the same fashion as customer payments were applied to invoices as described in the Accounts Receivable section of this document.Accounts receivable issues often arise when clients first use Enter Bills to record an amount due but then use Write Checks instead of Pay Bills to pay these bills. Therefore, bills are still shown as outstanding even though checks have been written to the vendor or outstanding vendor credits are available but have not been applied to the bill. Here, checks have been are written to Vendors instead of bill payments being used. Reentering the bills first will preserve the original input information, if it is needed, while entering the bill payments.Accrual Basis – Bank Reconciliation CompletedFor clients who use the accrual basis of accounting, the dates recorded on bills and bill payments are critical for proper reporting. The checks should first be reentered using the Bill Pay functions, then the checks appearing as a duplicate, not written as a bill payment can be deleted. Also, a check register should be printed or check copies should be available to enable rerecording of the checks. Backing up the data file before making substantial changes is always encouraged. Deleting transactions quickly is easy using the CTRL-D shortcut. Two items to consider before deciding how to correct the problem are, first whether the client is on the cash or accrual basis of accounting and second whether or not the bank account has been reconciled.If the client uses the accrual basis of accounting and the bank reconciliation has not been completed, the incorrectly entered checks can be simply deleted and the checks re-entered using the Pay Bills function. Quickbooks Reconcile Account Payable Code On The(Note that the check number is in the reference field).The credit will be applied to the bill and the Amount to Pay will then be zero. Complete this same procedure for all checks that should be linked to a bill.Next, go into Pay Bills and select the appropriate bill to pay and click on Set Credits as shown below.Within the Discounts & Credits screen, select the appropriate credit, which will be the check that was just edited, to be applied to the Bill. A credit is created that can then be linked and offset to the bill that was created.In the Vendor Center, locate the check that was entered incorrectly and edit the check changing the account to Accounts Payable and including the vendor name in the Customer:Job field as illustrated below.Record the change. For this reason, the best solution is to change the account code on the check to Accounts Payable, ensuring that in the column entitled Customer:Job the vendor name is entered. This can be a very time consuming and tedious process. Use the CTRL-D shortcut to quickly delete the unwanted transactions. The Accounts Payable register can be opened by going to the Chart of Accounts, selecting the Accounts Payable account and double clicking. If the client uses job costing, ensure the checks also have the job costing information recorded before the bills are deleted.The easiest way to delete the bills is to go to the Accounts Payable register and delete them. A review of the accounts to which the checks are recorded is recommended as the information recorded on the bill will no longer exist. The Ending Balance for the Bank Account will not change.A dialog box will appear that affirms that no checks will be generated.If the client maintains their accounting system on the cash basis and accrual basis reports are not used or needed for management, historical or any other purpose, deleting the bills is easily accomplished. When the process is complete for all the transactions, click on the Pay & Close button. Second, the accounts to which payments are made and for which 1099s should be generated must be identified. If the Vendor Eligible for 1099 box is checked, then a Federal ID number, either a Social Security Number or an Employer Identification Number must be entered before the Vendor can be saved.2. First, as vendors are established, their Federal ID numbers should be entered on the second tab of the Vendor Information. The process is simple and easily performed.1. If the warning message appears, cancel the deletion and investigate the checks applied or partially applied against the bill.A review of the Unpaid Bills Detail report from Reports, Vendors & Payables, Unpaid Bills Detail can confirm that the remaining unpaid bills are what should be remaining in accounts payable.Clients often have difficulties printing 1099-MISC forms. ![]()
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