Client Advances - Negative Accounts Receivables


Joined
Jun 9, 2022
Messages
2
Reaction score
0
Country
United Arab Emirates
Hi I am using Quickbooks Online. We are in a consultancy business. The scenario is we receive advances from our clients as petty cash that we use to pay expenses on their behalf. I recorded as a liability first. Dr. Cash Cr. Client Advances. Now I think I'm doing this wrong. I watch a tutorial and the correct treatment was supposed to be to choose the Receive payment option from Quickbooks. This will create a negative AR, and will automatically adjust when I invoice our client.

Now, I want to clear the client advances on the balance sheet and make it a negative accounts receivable instead. Is there any way I can do this by Journal Entry?

Would really appreciate your help on this. Thank you.
 
Ad

Advertisements


Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top