Let's get the help you need, JoanneAJR. I've got insights and steps to ensure these entries are balanced and cleared out.
In QuickBooks Desktop (QBDT), a clearing account is used to move money from one account to another without moving it directly. It is like a holding account that holds your funds until you're ready to move them. Thus, you can set up a clearing account to match and clear these entries. To do that:
- From your QBDT account, go to the Lists menu and select Chart of Accounts. Then, click New.
- In the Add New Account window, select the Bank radio button.
- Select Continue.
- Enter Clearing Account, Barter Account, or Wash Account in the Account Name field.
- Please don't enter an opening balance.
- Select Save & Close.
Once done, here's how to use a clearing account:
- Create a journal entry and add the Account Receivable (AR) or Accounts Payable (AP) accounts from which you are moving money.
- Add the Clearing account and save the journal entry.
- Then, create a second JE and add the clearing account.
- Add the AR or AP account to which you are moving money.
- Link the Journal Entries together either in Pay Bills or Receive Payments.
Additionally, I'd recommend consulting your accounting professional for additional guidance. They can advise you further on what AR or AP account to use and ensure your records are accurately balanced.
You can also check out this article for more detailed information: Set up a clearing account.
Moreover, you'll want to visit this reference to guide you in reconciling your accounts: Reconcile an account in QuickBooks Desktop.
You can always leave a comment below if you have additional questions about managing entries on your account. We'll be right here, willing to help. Keep safe!
