Hello, @sgfee123. Thanks for getting back to us with more details.
In QuickBooks Desktop (QBDT), when a settlement is pending, it's considered a temporary asset until completed. Once finalized, it becomes a cash asset. It's not a liability because the company owes money to the broker for the purchase.
To balance the journal entry, the other side of the transaction should be a cash or bank account used to make the purchase. The amount should match the pending settlement. If the settlement amount was a debit, the cash/bank account should be credited with the same amount.
Additionally, there may be a number on the brokerage statement that can be used as the other half of the journal entry. However, it's essential to confirm with the brokerage firm that the number is indeed the correct amount for the purchase.
Furthermore, we recommend consulting a qualified accountant or financial professional for expert advice on properly recording and managing these transactions. If you need one, you can find an accountant here.
Here are some articles that will surely help you manage your balance sheet better:
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