POS purchases show up as a/p liability in QB

Hi kjw1998,

Because of the payment, an account in QB needs be reduced.

QB-POS assumes the payment will come from the bank account corresponding a QB checking account.

Clearing the AP in QB will reduce the checking account corresponding to the bank account

Richard
 

How would I clear the amount in A/P in Quick books?  I don't want that amount actually deducted from my checking account.  Sorry, I'm really new at all this so I apologize for these questions in accounting practices.  I actually paid for the items in inventory via a credit card.

Kjw,

Theoretically, when you paid via credit card you went into QB financial and entered your credit card charge for the inventory purchased referencing the vendor and also in the expense account field of the credit card charge window you selected the account Accounts Payable.  This would have recorded a liability or charge on your credit card account and then a corresponding credit for that vendor in your AP account.  When you receive the items into QB_POS and exchange the data with QB financial the inventory account is increased an a bill is placed in AP.  You then go to the Pay Bills window and select the bill and the click on Set Credits at the bottom of the window to apply the credit you recorded when you purchased the inventory.  Hope that helps.

I do go into QB and enter my credit card charges, however I use the actual account they pertain to, such as Inventory asset, advertising & promotion, etc., I don't use the Accounts Payable account.  When I go into pay bills, there are no bills to pay but it does show a balance at the bottom of the page.

Hi kjw,

When in POS “I have already paid for these items” is checked, the entry that goes to QB is a debit to inventory asset and a credit to accounts payable.

The transaction type is item receipt. Because of the transaction type, on the vendor menu “enter bill for received items” needs to be selected and then the vendor has to be selected. Once the vendor is selected, select the item receipt that came over from POS, and then enter the bill.

Now you should see the bill at “pay bills”.

Because you paid with a credit card, all you now need to do is clear the bill at “pay bills” by selecting credit card as the payment method. This will clear the accounts payable and increase the amount you owe to your credit card company (the credit card liability account).

No other entries should be needed in QB, but apparently you have made one or more. Depending on more details, the entry (entries) probably needs to be corrected, perhaps by reversing the entry.

Richard
 

I think I'm getting this figured out, now, if I have all the item receipts showing up as bills, and I "pay bills" using the credit card selection, my credit card liability is going to increase, which is incorrect because these charges were already entered. BUT, in order to clear the A/P account I need to do this so how do I reverse the credit card charges that will essentially be a duplicate of what I've already paid?

Thanks so much!

In your credit card charges, use the account payable account and then put the vendors name in the customer field.  This will create a credit for the vendor that you can use to "pay" the bill.  Also, when you check the already paid box, it just creates an item receipt that you need to turn into a bill.  I train never check that box.  If you don't see the bills to pay, run an unpaid bill detail and then turn the item receipts into bills by check the bill received box.  See my web site for a blog entry on this process.

Thanks so much, can you help me find the proper blog entry, I searched under several topics and couldn't locate it.

Thanks again,

k