How to zero out accounts payable in QuickBooks

How to zero out accounts payable in QuickBooks

QuickBooks Desktop software helps you manage the finances of a particular organisation. Different bookkeepers and accountants widely regard the software. That is why the software holds almost 80% stake in the market. In this blog, you will get to know the different aspects of old accounts, paying various bills, etc. Please read the whole blog until the very end and learn these essential factors to help you run the software and your organisation’s accounts.

How to zero out accounts payable in QuickBooks

It can be challenging to eliminate old Accounts Receivable (A/R), and Account Payable (A/P) balances. We will provide you with the details you need to resolve these issues, but it’s always a good idea to work with your accountant to make sure you’re doing what’s best for you and your business. Paying off any payables is the most effective way to clear them. Aside from journal entries, this often involves setting up a clearing account. The measures are similar to those for adding a bank account to your chart of accounts, except they don’t include an opening balance. Once you’re ready, you can clear those A/P balances by following the steps below:

Make the following journal entry:

  • Pick Journal Entry from the Plus sign (+).
  • If applicable, alter the date in the Journal Entry window.
  • Pick Creditors from the drop-down list in the Account Sector.
  • In the Debit area, enter the number.
  • Select the Supplier from the drop-down list in the name area.
  • In the Account area of the next row, choose the off-setting or clearing account.
  • The Credit and Debit fields should both have the same number.
  • Select Save & Close from the drop-down menu.

To the current balance, apply for the general journal entry:

  • Pick Expenses, then Vendors from the drop-down menu.
  • Search for the Bill to pay by clicking on the supplier’s name.
  • In the top-right corner, press the Make Payment button. The Journal Entry will be under the Credits section when the Bill Payment window opens.
  • To link the Bill and the Journal Entry, choose them all.
  • Pick Save & Close from the drop-down menu.

How do I zero out credit balance in accounts payable due to refunds of credit QuickBooks?

On the customer list, the customer’s credit balance will be shown as unfavourable. Select the Add Credits option to ensure that the available credit on an invoice is used. Here’s how to do it:

  • Double-click the invoice that is currently available.
  • Select Apply Credits from the drop-down menu.
  • Put a checkmark next to the credit number under Available Credits.
  • After that, click Done.
  • Ensure that Save & Close is selected.
  • After that, go back to the customer list and see if the balance has changed.

How to clear old Accounts Payable balance in QuickBooks Desktop software

When paying the bill, make sure to choose the correct vendor. We’ll be able to apply the credit for that vendor this way. Allow me to demonstrate:

  • Navigate to the Vendors portion of the menu.
  • Choose Pay Bills.
  • From the Filter By drop-down menu, choose the appropriate vendor.
  • Choose the bill you’d like to pay.
  • To add the credit, click the Set Credits button at the bottom.
  • After that, pick Pay Selected Bills.

How to pay bills in QuickBooks Desktop software

After you’ve recorded what you owe your vendors in QuickBooks Desktop, you can settle your payables on the Pay Bills page. You may add a discount or credit you got from a vendor to your bill payment to minimise your total payable.

  • Check to see if the bill needs to be entered into QuickBooks.
  • Make sure Display all bills is selected on the Pay Bills window, then scroll up or down to find your account.
  • When you pick Due on or before, you can narrow down the bills you’re looking for by entering the date in the Display bills section.
  • Check if the bill is in a separate account if you have several accounts payable.
Conclusion

To conclude, QuickBooks Desktop software is accounting software, and there are hundreds of features and functions that help you manage the books and accounts of a particular organisation. This blog’s whole idea is to understand how you can zero out accounts payable in QuickBooks Desktop software. I hope that this blog helps you understand the different aspect of accounts payable in QuickBooks and was worth reading it. 

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