How to Fix Error QuickBooks Old Aging AR Out of the System

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If you are running a business, you would know that you need to match the journal entries made by your CPAs (Chartered Professional Accountants) with your AR ledger. This is an important activity that keeps your account receivables in proper order by matching payment and invoice . it also helps you discard files with zero balance. If you leave unmatched items on the Account Receivables report , it may lead to confusion. 

If you are fairly new to QuickBooks and are not sure about how to send QuickBooks old aging AR out of the system,  you are at the right place. In this blog, we would help you learn how to clear out old accounts receivable in QuickBooks.

Step to Clear QuickBooks Old Aging AR Out of the System

Total Time: 15 minutes

Method 1:

One of the fastest ways of clearing old AR out is to create journal entries and pay it off. Then you need to make a clearing account, without any opening balance. Please follow the steps below
ūüĒ∑ Open¬†QuickBooks¬†
ūüĒ∑ Navigate¬†to the left panel and click the¬†Accounting¬† tab
ūüĒ∑ Go to¬†the Charts of Accounts¬†
ūüĒ∑ Click on New¬†
ūüĒ∑ Click on Cash at bank and in hand
ūüĒ∑ Select an¬†Account Type¬†
ūüĒ∑ Assign a¬†suitable name to¬†your clearing account.
ūüĒ∑ Make sure not¬†to enter anything in the Balance field.
ūüĒ∑ Click the¬†Save and Close¬†button

Method 2:

After creating a zero balance clearing account, the next step is to make a Journal Entry. Here are the steps to follow-
ūüĒ∑ Open¬†QuickBooks.
ūüĒ∑ Click¬†the¬†+¬†icon.
ūüĒ∑ Select Journal Entry.
ūüĒ∑ Add the particular¬†Accounts Receivable¬†(AR) from which you are moving the money.
ūüĒ∑ Add the¬†clearing account¬†.
ūüĒ∑ Click the¬†Save button

Method 3:

The next step is to apply the journal entry just created to the existing balance. Here is what you should  do-
ūüĒ∑ Open QuickBooks
ūüĒ∑ Click the¬†Expenses¬†tab.
ūüĒ∑ From the top menu, find out and click on the¬†Suppliers tab
ūüĒ∑ Choose the name of the supplier.
ūüĒ∑ Search for the particular¬†Bill to pay.
ūüĒ∑ Go to¬†the top-right corner¬† and press¬†the Make Payment¬†tab.
ūüĒ∑ The¬†Bill Payment¬†window will open up on your screen.
ūüĒ∑ Go to the¬†Credits section¬†and locate the¬†Journal Entry¬†tab.
ūüĒ∑ Select the Journal Entry¬†and¬†Bill¬†to link.
ūüĒ∑ Press the¬†Save and Close button¬†to¬†confirm your action¬†

Read Also-: How to Fix QuickBooks Balance Sheet Out of Balance in Accrual Basis

Conclusion:

We hope the sequential steps mentioned above have helped you a great deal to clear out old accounts receivable in QuickBooks. If you are still experiencing any difficulties in carrying out the above-mentioned steps or if you have any more queries, we would recommend you to speak to some of the authorized QuickBooks experts.


ūüí† Frequently Asked Questions ūüí†

How to Create a Clearing Account in QuickBooks Desktop?

‚Ė™ Open¬†QuickBooks¬†
‚Ė™ Navigate¬† to the left panel¬†
‚Ė™ Go to Lists
‚Ė™ Go to¬† the ¬†Charts of Accounts¬†
‚Ė™ Click on Accounts
‚Ė™ Click on¬† New¬†
‚Ė™ Choose Bank
‚Ė™ Click Continue
‚Ė™ Assign a¬† suitable name¬† to¬† your clearing account
‚Ė™ Press the¬†Save and Close button¬† to¬† confirm your action¬†

How to Reverse Journal Entries in QuickBooks Online for Overpayments?

Please follow the steps below-
‚Ė™ Open¬†QuickBooks¬†online
‚Ė™ Navigate to¬† the upper right section
‚Ė™ Clicking on¬†the Search¬†tab.
‚Ė™ Search¬†for the journal entry already created and you want to¬†reverse
‚Ė™ Click and open it.
‚Ė™ Click on the¬†Reverse tab
‚Ė™ Tab on the¬†Journal Date¬†and¬† edit it.
‚Ė™ Make sure that the¬† date of entry is at least one day after the original journal entry date .
‚Ė™ Press the¬†Save and Close button¬†to confirm your action

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