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Statements and A/R aging reports show incorrect current balance

Statements and Accounts Receivable (A/R) Aging reports show an incorrect current balance and the difference is the same amount as the discounts applied to statement charges.

Why this is happening

QuickBooks was not designed to discount items when entering statement charges.

How to fix it

To resolve this issue, select the option below that best fits your situation:

  • Create an invoice and apply a discount on the invoice instead of entering statement charges.
  • Create a new item and a credit to reflect the discount given.

Create an Other Charge item:

  1. From the QuickBooks Lists menu, choose Items.
  2. In the Item List window, click the Actions drop down and select New.
  3. From the Type drop-down list, select Other Charge.
  4. In the Item Name/Number field, type in a unique discount name (for example, Statement Disc).
  5. Complete the remaining information, and then click OK.

Create a credit by entering a Credit Memo or a General Journal Entry:

  • To create a Credit Memo:
  1. From the QuickBooks Customers menu, choose Create Credit Memos/Refunds.
  2. Fill in the appropriate information, and then from the Item drop-down list, select the Other Charge item created in step 1.
  3. Enter the amount of the discount.
  4. Type Discount Given in the Memo field (the information entered in the Memo field will also print on the statement).
  5. Click OK.
  • To create a General Journal entry:
  1. From the Company menu, choose Make General Journal Entries.
  2. On the first line, select Accounts Receivable from the Account drop-down list, enter the amount of the discount in the Credit field, type Discount Given in the Memo field, and then select the appropriate name from the Name drop-down list.
  3. On the second line, select the appropriate discount expense account from the Account drop-down list, the amount entered on the first line will automatically fill under Debit, type Discount Given in the Memo field, and then select the appropriate name from the Name drop-down list.
  4. Click OK.

Apply the credit created above to the Statement Charge:

  1. In the Receive Payments window, make the appropriate selection from the Customer:Job drop-down list, select the Apply Existing Credits? check box.
  2. (Optional) Enter any payments received in the Amount field.
  3. Click OK.
KB ID# SLN40142
10/24/2016 11:42:49 PM
PPRDQSSWS403 9138 Pro 2017 9c25ed