The AR and AP balances on a Cash Balance Sheet are always wrong. You should never run a Cash Balance Sheet due to this reason.
Just run it on Accrual and if correct, don't worry!
Sally McIntosh ([email protected])
I also believe that QuickBooks is behaving in an unexpected way in regards to “Cash Basis” reports vs “Accrual Basis”. In my case, the issue happens when refunding money to customers.
Here is my issue and any assistance in understanding is appreciated. I am having trouble understanding why there is there an amount under “Accounts Receivable” when I run my Balance Sheet (Cash Basis) and yet the Balance Sheet (Accrual basis) has NO money owing to us.
I know that definitely no customers owe us any money and yet, on the balance Sheet, there is a large amount of money growing year by year.
In our situation;
· We Direct Debit money from many, (over 100), customers’ accounts once per fortnight using an uploaded ABA file to our Bank.
· The single Lump sum $ amount is direct deposited in to our Bank Account by the Bank. This is recorded in QuickBooks as a single “Cash Sale”
· A few days later 3 or 4 of the Direct Debits can ‘fail’ due to insufficient funds in the customers’ accounts.
· When this happens a “lump Sum” debit from our bank Account is taken by the bank directly from our bank Account.
· This lump sum can consist of 3 or 4 individual customers all rolled in to the one $ amount.
1. We DD all customers, (over 100 of them), for say $30,000
2. We enter in to Quick Book the full $30,000 as a single “Cash Sale” (even though there are over 100 customers) and this amount is deposited to our account by Westpac
3. A few days later (say $600) is withdrawn by Westpac directly from our Bank account as some Customers DD failed
4. We then reverse the individual Customer DD by giving a ‘Refund’. This is a feature of QuickBooks and the accounts all now balance.
5. We then accept the “Write Refund” cheque Prompt and our Bank account now balances perfectly.
6. It appears that this process creates the abovementioned “Accounts Receivable” amount Yet we have no actual money owed to us as at a later date we take the failed DD amount and we then have no customers owing any money to us.
No a refund cheque to a customer is correct to use Accounts Receivable.