Quickbooks Clean Up
by Michelle
(USA)
I have a few transactions from 2010 that include some duplicate credits and duplicate bills along with some old credits. These are showing up on my Profit and Loss report which is causing it to be inaccurate.
What would be the best way to get rid of them? (WE haven't done the 2010 year-end taxes yet.)
Couldn't I just get rid of the duplicate credits by creating a bill and using the credit for it and vice versa for the duplicate bills? Or should I do jounal entries?
Thank You
Michelle
Hi Michelle,
The correct way to fix an error found is to do a reversing entry. As you are cleaning up your books for 2010, I would date these reversing entries December 31st.
The best way to do a reversing entry in QuickBooks is to use the same form the original entry was made on. So for a bill, create a credit and then apply the credit to bill. Make sure you do a very good memo note explaining why your are reversing the entry.
As you suggested, do the opposite for the credit.
You might want to read my Internal Controls article to set up procedures so these types of transaction cannot reoccur.
Before you do any clean up, make sure you do a backup so that if something goes wrong, you can easily restore and begin again.
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