I needed to accrue unbilled revenue for 2010, so I did a journal entry debiting A/R and crediting revenue, which I reversed in the next period, when I sent the invoice. My customer record now shows a credit, which I am being asked to offset against other
invoices. I want the journal entries to offset each other in the customer record and disappear. How do I make this happen?
why ur doing this accruals for A/R?
the entry u made for this is decreasing your receivables and increasing revenue
No, the original entry increased my revenue and A/R, to reflect the unbilled value of work. I reversed the entry in the next period, when I sent the customer the invoice, which washed the transaction out
yeah missed that ok so u mean your adding sales which is not recorded on your 2010
actually u dont need to reversed the entry u just link the payment received this will close the receivables and cash added on your balance sheet account
Go to Customer > Receive payments. You should be able to apply the reversed JE to the original one.
Yes. I agree this is a way to go about it, but if you accrued an entry you probably want to reverse it just to accurately represent your books. Once you have reversed the entry you went ahead and recorded the the actual invoice, since customers are involved and because you do want a customer record and invoice for the transaction.
In order to clean you AR for the accrued entry you want to go to Customer for each customer that a transaction was accrued for. In that screen select the JE and select apply credits.
At end of period if you needed to accrue an amount. I usually use 1 designated AR in house account. That way the customer accounts are not affected in the accrual.
