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Ask QuickBooks ProAdvisor MBA PHR Your Ow...
QuickBooks ProAdvisor MBA PHR
QuickBooks ProAdvisor MBA PHR, Management Consultant, QuickBooks ProAdvisor, MBA, PHR
Category: Financial Software
Satisfied Customers: 82
Experience:  QuickBooks Pro, POS Point of Sale, Online & Enterprise Solutions
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Is anyone familiar with QB? If so, I need some help as to why

Customer Question

Is anyone familiar with QB? If so, I need some help as to why I have negative numbers in my P&L expenses? I have customers who prepaid on accounts, say in August. I was buying supplies for their project with a credit card( paying it in full monthly) expensing it to that specific job and then invoicing in Sept. QB would apply that credit amount to the invoice.
Submitted: 3 years ago.
Category: Financial Software
Expert:  Robert M. replied 3 years ago.

Hi, I'm Robert and I'll be helping you with your financial software question.

 

can you send me the report or list the items that show up as negatives ?

 

My guess would be it is the way you handled the pre pays. ie you applied them as a negative expense when they came due to balance the prepay rather than turning the prepay into a credit memo and then applying that to the invoice.

Customer: replied 3 years ago.


Hi-

Attachment: 2013-10-16_192427_sep_2013_ssc_pl.pdf

. I hope that you can see this attachment.

Customer: replied 3 years ago.


I do think it has something to do with how I applied the payment/credit memo to the invoice. I am just not sure how to fix it now. I have another customer account the same way. That is why I tried backing out of the transaction, deleting the deposit, deleting the payment received. The negative amounts on the P&L I sent previous are for items that I invoiced the customer in September, they issued a prepay in August.

Expert:  Robert M. replied 3 years ago.

yes that looks like every pre pay that you did got applied as a negative expense rather than a credit.

 

what you need to do is accept the pre pay as a credit memo giving them an open credit.

 

then just apply that credit when you create the invoice the same way you would apply a check if they handed you one after they got the invoice.

 

I think in this case you have to redo the entire invoice but there might be some people here that are more experienced in day to day working of quickbooks than I am. I come from the computer end and I am more specialized in when the program isn't working at all rather than how to adjust accounts in a working program. I have some knowledge of it so I can point you in the right direction but somebody else can be a lot more detailed and might know a better way to do it. or at least easier.

 

This post from quickbooks shows how it should be done as far as the future. But I know of no way to convert what you do have other than deleting them and starting over.

 

http://support.quickbooks.intuit.com/support/pages/inproducthelp/core/qb2k12/contentpackage/core/retainers/task_applying_retainer.html

Expert:  QuickBooks ProAdvisor MBA PHR replied 3 years ago.
Robert is correct, your method is what is causing this problem. Generally prepayments are applied to a customers account and then used as a payment against an invoice. I understand why you were taking the payments the way you were, but QB is not compatible to your method & reporting will be off by doing it this way.

You can possibly use General Journal Entries to correct the errors, but I would only recommend using GJE if you have used them before, many times, correctly bc these are a backdoor to your financials & erroneous GJEs cause many more problems than they fix when done incorrectly.

The correct way will be to reverse (delete) the entries you have made and to redo by invoicing the customer & applying the payments already received.

If you require any additional clarification or additional assistance, please feel free to ask me http://www.justanswer.com/finance/expert-foxbizsolutions/

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