QuickBooks is a premier accounting software meant mainly for small and medium businesses to help them in managing their finances and accounts and make their bookkeeping process very easy. It offers a variety of integrated tools that help the organization in preparing invoices, bills, etc.; managing the payroll system along with many other features. For further details, you may contact the QuickBooks Support team.
One of the features of QuickBooks is to manage the Accounts Payable of the business. Accounts payable calculates the amount that the business owes to its suppliers or creditors. Sometimes QuickBooks shows a negative balance in the accounts payable leaving the users confused.
A negative balance in accounts payable arises from an error of a very fundamental nature. What happens is that the users enter the amounts of bills in the QuickBooks system and checks have been written against these bills. But the original checks in effect actually go void somehow and hence they are left in the system with the consequence of a negative balance in the accounts payable.
You May Also Read :Learn about QuickBooks Online Bill Pay Service?
How to Remove Negative Balance in Accounts Payable
Go through the entire Accounts Payable and even the Vendors list. If you see any negative balance in any of them, then you can follow these simple steps to remove it:
- Open the Reports menu.
- Select the option of Vendors & Payables.
- Now click on the Unpaid Bills Detail Report.
- Now, scan and go through the entire report to check for any negative balances.
- If there is any negative balance, then double click on it.
- See that a bill payment check will open.
- Notice the lower half of the screen where there will possibly be no bill located and nothing to signify that the check was applied to the bill.
- In this case, leave the bill payment check window open.
- Open the accounts payable and click on Enter Bills.
- Enter the bill in the desired location with the exact same amount as on the check you saw earlier.
- Attempt to find the original bill if possible so that you can get the exact information regarding the check. If you are able to find it, then copy the information in a verbatim manner. But if you are not able to locate the bill, then you will have to guess the correct due date and enter it.
- Now click on Save. If you have more bills to enter, then click on New. When you have entered all the bills, Save and Close the window.
- Now go back to the bill payment check and again notice the lower half of the window. This time, there should be the bill that you have entered.
- Check the mark next to it and enter the right amount in the extreme right column.
- Click on Save and Close the window.
- QuickBooks may ask you if you are sure that you want to save the transaction. Click on Yes.
- Again, go to the Unpaid Bills Detail Report. Hit Refresh.
- Now the bill payment check that caused the negative balance in the accounts payable or the vendors list will be gone.
- Make sure that you do not accidentally repay the bill. You can follow these steps to reinforce or apply the checks that to the re-entered bills.
In case you still see a negative balance or your problem remains unsolved after following all these steps, then you may contact the QuickBooks Technical Support team.