[Calvina Halvaei]

Hi,

Trying to figure the right way to clear open transaction that are either expense or credit off our book so it balance. Any idea?

Thank you!

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Calvina Halvaei
Payroll & Accounts Payable Administrator
North Star Resource Group
Minneapolis MN
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[Shari Bruno]

Hi Calvina,

Are these expenses that do not need to be paid, and credits that do not need to be applied?

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Shari Bruno
Accounts Payable Specialist
Bible League International
Crete, IL
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[Michael Leiden]

We have one that has been sitting out there for awhile  – curious to see how this gets resolved.

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Michael Leiden
Associate CIO Information Services
Catholic Human Services
Philadelphia PA
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[Shari Bruno]

Hi Michael,

Was it a check payment or a credit memo that was partially applied to the payable?

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Shari Bruno
Accounts Payable Specialist
Bible League International
Crete, IL
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[Amber Bell]

Invoices that need to be cleared can be cleared using a Credit Memo:

1.  Purchasing > Transactions > Transaction Entry
2. Change doc type to Credit Memo
3. Enter Vendor, Amount, description, use current date
4. Add lots of transaction notes
5. Click distributions and enter the offset to AP (same as the open invoice? Special write-off account…it’s your company’s call)
6. Copy notes to other transactions affected
7. Click Apply
8. Apply to correct transactions 
9. Save to batch
10. Review and post

you can clear un-applied payments too. You would just need to enter a new AP Transaction (Misc Charge would work)

1. Purchasing > Transactions > Transaction Entry
2. change type to Misc Charge
3. follow same steps as above except you have to post before you can apply the unapplied credit memo or payment. 
4. Apply to the new Misc Charge; Purchasing > Transactions > Apply Payables Docs

note: if this was an uncashed payment…do not hit cash manually! You can either Void the payment or follow the same steps above and then enter a Bank Transaction (Increase Adjustment) and offset using the same account that you used on the AP Transaction 

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Amber Bell
Owner
Training Dynamo LLC
Derby CT
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[Calvina Halvaei]

Thank you Amber, if the transaction is old from many years ago, I can clear using current date system correct? And this won’t mess up my year end or month end?

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Calvina Halvaei
Payroll & Accounts Payable Administrator
North Star Resource Group
Minneapolis MN
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[Amber Bell]

I would use the Current Date. The items would show as open on old Historical Trial balance dates (which would be correct). That way you are not changing the GL balances for old years…

Use the current date and your books will be clean going forward without wacky changes to closed/submitted financials!

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Amber Bell
Owner
Training Dynamo LLC
Derby CT
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