Good day, Randhir Jha .
Allow me to share some information regarding the Opening Balance Equity account and help you manage the negative amount.
The following transactions are automatically recorded in QuickBooks Online to the Opening Balance Equity account:
- Opening balances entered when New Customers or Vendors are set up
- Accrual basis opening accounts payable transactions as of the start date
- Uncleared bank checks or deposits (accrual or cash basis) as of the start date
To isolate the issue, you might want to review your balance sheet report and check if there are transactions attached to that account.
Here's how:
- Click Reports in the left panel.
- Search for Balance Sheet Standard report.
- Without adjusting the date, view the Equity section of the report to see whether a balance exists in the account.
If there are no transactions attached to that account, you can create a journal entry to correct the balance. However, using this method needs the assistance of an accounting professional for the accounts you need to use. Also, your accountant can help and guide on which account to debit and credit.
Below are the steps to complete the process.
- Select + New.
- Select Journal Entry.
- Fill out the fields to create your journal entry.
- Select Save and new or Save and close.
I'll be leaving you some recommended write-ups below. It contains more information on how to edit an opening balance as well as marking the journal entry as reconciled in QuickBooks Online:
What to do if you didn't enter an opening balance in QuickBooks Online
Enter opening balances for accounts in QuickBooks Online
Feel free to drop me a reply below if there's anything else I can help you with. Have a good one.
