USA Quickbooks Journal Entry for accts payables

[CCrisp]

i am working with Quickbooks Pro 2011. I need advice on doing a journal entry. I have a customer that never cashed a check that was written as a credit memo/refund in July. Our fiscal year ends in September so I called the customer they never cashed the check but they now what the check rewritten in a different name because the company has changed names. Quickbooks does not allow the customers name to be changed once a transaction has occurred only the address information to change. So if I were doing a transaction to reverse the money from the accounts payable but then replying it to another vendor in this fiscal year what do you suggest. I need it to show as a prepaid expense in 2012-2013 but to write a check for it in 2013-2014 fiscal year. I just want to clarify that what I am thinking is the best way.

 

[Samir]

I'm not sure about the particulars of Quickbooks, but if this is a refund on an accounts receivable, there's two solutions I can think of.

One would be to reverse the transaction if possible and then make a new current liability account for 'Refunds Payable'. Then you can make an entry that credits 'Refunds Payable' in the 2012-2013 year. Then in the 2013-2014 year, you can write a new check to showever is necessary and this check would debit 'Refunds Payable' zeroing it out.

The second solution would be to change the account for the current transaction to 'Refunds Payable' leaving the pay to and everything intact. Then again, just issue a new check in 2013-2014 to the new payee from the 'Refunds Payable' account.