How to Fix Negative Accounts Payable in QuickBooks

QuickBooks has become one of the reliable accounting software applications. This specific cutting edge has been proven to be useful […]

QuickBooks has become one of the reliable accounting software applications. This specific cutting edge has been proven to be useful for big businesses and SMEs. As one of the business owners, you may easily manage your accounts and finances. QuickBooks can make it simple for you to keep up with the bookkeeping process coupled with the advanced features. The integrated tools of this QuickBooks software can assist you in preparing the bills and invoices. You can also manage the calculation, tax management, payroll with this application.

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QuickBooks has another unique feature for managing your Accounts Payable. Accounts Payable indicates the amount owed by your business to your creditors and suppliers. However, some users can become confused while their software can also show a negative balance in their accounts.

Negative Accounts Payable – What does it Indicate?

At times, in your balance sheet, you may find the negative liability when your company has paid off more than what is required to be done for that liability. At times, the negative accounts payable can also appear as a negative due to the fundamental error. There is a possibility that you may have entered the incorrect bills or written the checks against those existing bills. However, for some reason, the original bills could not be located and appear to be the deleted.

With this error, several users may face this problem while registering a balance in their QuickBooks Online. As a part of this, these users may find their amount, not matching their QuickBooks accounts online. There may be different reasons for which the bank balance does not correspond to the QuickBooks Online balance. The other error you can face is your accounting software keeps QuickBooks frozen. When you are working smoothly and you face such kind of error you need to know How to Unfreeze QuickBooks.

After depositing your check-in QuickBooks online, you have subtracted it from QuickBooks registered bank account. However, you have not cleared the transaction on the bank, and then following reasons will be responsible for the error:

  • Incorrectly added transactions to your QuickBooks register
  • Editing or removing the specific transactions in the book keeping records can result in the discrepancy.

What You can do if you get a negative account payable in QuickBooks?

At times, QuickBooks may show a negative account payable, or any of the listed vendors show a Negative Balance in the vendor list, then it is recommended for users to follow these given steps to resolve the matter:

Enter the Bill/s:

  • Open the ‘Reports‘ menu.
  • Click on the ‘Vendors & Payables‘ option.
  • Now you need to click on the ‘Unpaid Bills tab.
  • Once clicked, a detailed report will open on your screen.
  • At this stage, you should closely look through the report for any of the negative amounts.
  • If you manage to locate any, then you need to double click on it.
  • A bill payment check will be opened on your computer screen.
  • Then you should go to the lower section of the screen.
  • You will not see any bill displayed.
  • If you will not be able to find any amount of any relation of this check to any bill.
  • Please leave this window open.
  • Open the ‘Vendors‘ menu.
  • Click on the ‘Enter Bills‘ option.

Here you should enter a bill to the vendor which was being displayed on the previous screen.

Important: You need to ensure that you enter the exact amount on the bill as it was written on the check.

  • You can also refer to the original bill and try to enter the exact date and other details from the original bill to the new bill.
  • Then you need to verify each and every detail closely
  • Then you need to click on ‘Save‘.

You can also click on the ‘New’ action tab if you wish to enter more bills. Otherwise, you can choose to click on the ‘Close action tab’ to successfully finish entering the bills.

  • After following the first 4 above mentioned steps, you can go back to the previous window of the bill payment check. You will then notice that the lower section of the screen will display the bill amount.
  • If you find the bill in place then collect the checkmark the box next to the Bill.
  • Then you need to enter the exact amount as it was written on the check.
  • Click on ‘Save‘ and then click on the ‘Close button.
  • Then you should confirm the new QuickBooks’ transaction changes by clicking on ‘Yes.’
  • Go to the ‘Unpaid Bills Details report.
  • Click on the ‘Refresh’ option.

You will now see that the bill payment check will not be there which was the reason for creating the negative account payable in QuickBooks.

  • You need to choose the Yes button
  • Access the Unpaid Bills Detail Report page.
  • The last step is to refresh the page.

You will not find negative accounts payable in QuickBooks. For this, you also need to ensure that you have not paid your bill accidentally twice. We have shared the steps for applying and reinforcing the checks as well with you to ensure this issue should not reappear.

Accounting Professionals, CPA, Enterprises, Owners
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Frequently Asked Questions (Faqs)

What if Accounts Payable is Showing as Negative?

Accounts payable can be considered as a liability. You can say its a guarantee that you will take care of that account. Any negative balance in account Payable implies that bills were entered correctly and checks were composed against those bills. Due to certain reasons, the first bills got erased or expelled and user ends up seeing the negative account payable.

How can the Accounts Payable Entry be Reversed in QuickBooks?

For this you can refer to this set of steps as described below:

checked Go to the QuickBooks Company menu
checked Then you need to select the Make General Journal Entries.
checked Then you need to locate the journal entry you have created in step 1.
checked After this, You can update the date to the first day of the next quarter.
checked Once prompted, You need to save changes and select the No button.
checked Select on the Reverse on the top of the Journal Entry window.

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