In QuickBooks 2010, you should not use A/P to apply credits to Bills. Instead, use a Bank account. This problem is fixed in QuickBooks 2012.
Solution if you applied credits from Cheques to Accounts Payable:
NOTE: Take care of your data and company file. You must perform steps 1 and 2 below before proceeding.
- Before any fixes are done - Make a backup of the file.
- Before any fixes are done - Run the following reports for all dates and print them off. (This is the base line of transactions as they exist now)
- Balance Sheet and Trial Balance
- Aging and Supplier Balance Summary reports
- Go to Advanced Find (Edit/Find/Advanced tab), select the following, then click Find:
- Transaction Type = Cheque
- Account = Accounts Payable
- Name = (Supplier with the problem)
- Select the first Cheque, then click Go To.
- Change the Accounts Payable account line to be a new Bank account. (This will break the links between the bills and credits.)
- Go to Pay Bills, change the Bank account to the new Bank account …
a) Change the date, and repay the Bills and
b) Pay only the amount that is in the bank account;
- Return to Advanced Find, and select the next Cheque - Repeat steps 4 and 5 until each Cheque has been used to Pay Bills.
- Return to Advanced Find, and change the Name to the next Supplier with a problem.
- Work through each Cheque, for each Supplier with this problem, until there are no more Cheques to accounts payable
- Once all fixes are done - Run the Vat 100 report for all dates and print it off AGAIN (This report should now be accurate)
- If the differences are not too great, you can file correctly with the next filing period. If they are great you may want to speak to your Accountant or HMRC.