In setting up my new QuickBooks file, how do I enter the existing bank account balance with outstanding uncleared checks

It really depends upon how they were reported in previous year’s Financial Statement Report.

Let’s take examples and assume the ending bank balance per the bank statement is $11,000. There is also one check you wrote for $10,000 has not cleared the bank yet. In your books, the actual bank balance should be $1,000, right?

Example #1: You have already reported $10,000 as an expense in the previous year’s financial statement.

Since you have already reported, you do not want to expense it again in the current year. You would post $10,000 check as “Prior year” activity, with a prior date. This way, you can put the bank statement’s ending balance and have the uncleared check as outstanding, for the purpose of bank reconciliation.

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Example #2: You have not reported $10,000 as an expense in the previous year’s financial statement.

This becomes your current year financial activity when the check has cashed the bank. If you are downloading banking transactions, you would expense it when the bank posted the transaction. In setting up QuickBooks file, the bank balance is $11,000, the same as the bank statement balance.

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How can I transfer unapplied credit from one customer to another in QuickBooks Online

A case may occur when a customer wants to apply credit balance to an affiliated company’s open invoice.

EXAMPLE:

Customer (Mark) has a $500 credit balance. Customer (Martha) has a $500 Open Invoice. They like to clear the accounts by applying $500 credit from Mark’s account to $500 Open Invoice of Martha’s account.

One easy way to handle transfer credit from one customer to another customer is to write a Journal Entry in QBO.

Click on the screenshots below to enlarge them

Customers Page
Customers Page

Customer Mark's Account with $500 Unapplied Credit
Customer Mark’s Account with $500 Unapplied Credit
Customer Martha's Account with $500 Open Invoice
Customer Martha’s Account with $500 Open Invoice

 

To create a Journal Entry

From the home page screen, click Create+ sign

  • Click Journal Entry tab under Other heading.
  • Enter the date.
  • On the first line, from the Account drop down list, select Accounts Receivable (A/R).
  • In the Debit field, enter the unapplied amount being transferred. Example:$500.
  • In the Memo field, note the reason for the Journal Entry. Example: credit transfer to Martha’s account.
  • From the Name drop down list, select the customer name that credit is being transferred from. Example: Mark
  • On the second line, from the Account drop down list, select Accounts Receivable (A/R) again.
  • In the Credit field, enter the credit amount (same as debit amount). Example:$500
  • In the Memo field, note the reason for the Journal Entry. Example: credit transfer from Mark’s account.
  • From the Name drop down list, select the name of the customer that the credit is being transferred to. Example: Martha
  • Click Save.
Journal Entry
Journal Entry
Mark's Customer Page after Journal Entry
Mark’s Customer Page after Journal Entry
Martha's Customer Page after Journal Entry
Martha’s Customer Page after Journal Entry

 

The final step is to Receive Payment on both customer accounts so that it will show “Paid and Closed” customer status

From the home page screen, click Create+ sign

  • Go to the Customers tab and click Receive Payment.
  • Select the customer (example: Mark).
  • Make sure that the credit and Journal Entry are checked at the left (make no other entry on the Receive Payment form.)
  • Make sure “Amount received” show zero amount.
  • Click Save.

Follow the same “Receive Payment” steps as above for the customer (Martha).

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Receive Payment (Customer Mark)

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Receive Payment (Customer Martha)

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Customer Mark’s Page with Paid and Closed Status

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Customer Martha’s Page with Paid and Closed Status

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#QuickBooks Online

 

How do I reverse a Journal Entry in this new QB Online?

You can reverse Journal Entry in new QuickBooks Online (QBO).
From the home page screen

  • Select Create (+) sign (upper-middle)
  • Select “Journal Entry” under Other heading
  • Select small “Clock” icon for recent transactions, next to Journal Entry form title (upper-left-corner)
  • Select Journal Entry needed to be reversed (select “More” link to expand the list if needed
  • Select “Reverse” button at the bottom middle
  • It will automatically assign sameJE# with R added. Change JE# if needed. Save
  • See screenshots below for reference
Reverse Journal Entry
Reverse Journal Entry
Journal Entry Reversed
Journal Entry Reversed

What are the mains reasons to write a reversing Journal Entry?

  • Correcting a mistake in the previously recorded transaction without deleting the original entry.
  • Reversing accrual type of Journal Entry and replaced by posting the actual transaction so that the transaction is properly reflected between two accounting periods.

    QuickBooks Tutorial – Journal Entry Debit and Credit


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