Old Open A/R

Hello, krossley.  

Thank you for reaching out to the Community. I'm here to help you offset the amount applied for last year.
 

It would help if you created a Journal entry to offset the money involved. Creating a Journal entry would be beneficial to balance out the financial transaction. Journal entries are crucial in keeping track of all a company's financial transactions, as they aid in accurate financial reporting and analysis. Each journal entry affects at least two accounts, following the double-entry accounting principle, which means that every debit entry must have an equal credit entry. 

Here's how: 

1. Click the + New.
2. Select Journal entry.
3. On the first line, select an account from the Account field. Enter the amount in the correct column to debit or credit the account.
4. On the following line, select the other account you're moving money to or from. Depending on if you entered a debit or credit on the first line, enter the same amount in the opposite column.
5. Check the amounts - you should have the same amount in the Credit column on one line and the Debit column on the other. This means the accounts are in balance.
6. Enter information in the memo section to know why you made the journal entry.
7. Tap Save and Close.

I recommend contacting your accountant to ensure you're using the correct account. Your accountant will be able to provide you with detailed advice on which account is best for your specific needs. They can also help you set up the account correctly, ensuring you have all the necessary documentation and information. Your accountant will also be able to answer any questions about managing your finances and provide guidance on making the most of your account. By working with your accountant, you can be confident that your finances are being managed best for your business or personal needs.

You can find more information on managing outstanding balances for customers and vendors in this article: Manage Outstanding Balances for Customers and Vendors.

Additionally, it's important to regularly reconcile your bank accounts to ensure that all the payments and expenses are accurately recorded. It helps identify any discrepancies between your records and your bank statements.

The Community is always open if you have other questions. Comment below if you have other concerns or need help clarifying things in QuickBooks. Take care and have a good one!

@krossley 

Is your client on cash or accrual basis?