Each QuickBooks general ledger account is assigned an appropriate account ‘Type’. As you may be aware, QuickBooks currently prohibits entries from posting to more than 1 ‘Accounts Receivable’ and ‘Accounts Payable’ account type per journal entry. Therefore, it is imperative that your QuickBooks chart of accounts be updated to reflect single, primary ‘Accounts Receivable’ and ‘Accounts Payable’ account types. Failure to do so could result in your data failing to synchronize. Regardless of whether or not there is activity in additional accounts with ‘Accounts Receivable’ or ‘Accounts Payable’ account types, QuickBooks will not allow them to be deleted once they have been saved. Therefore, if your company’s QuickBooks chart of accounts currently contains more than single, primary ‘Accounts Receivable’ (used for the collection of monies from your customers) and ‘Accounts Payable’ (used for the posting of vendor invoices from your vendors) account type accounts, the additional account(s) need to be made ‘inactive’, replacement accounts need to be created, and inactive account balances need to be transferred from the old account(s) to the new account(s). From within your QuickBooks company file, follow the instructions provided below to make any applicable account(s) ‘inactive’, while maintaining your original account number(s) and balance(s):
1. FOR ‘ACCOUNTS RECEIVABLE’ ACCOUNT TYPES:
a) Identify the additional ‘Accounts Receivable’ account type account(s) to be made ‘inactive’
b) Display your Chart of Accounts by clicking the ‘Accnt’ icon at the top of the screen.
c) Highlight the desired account.
d) Type ‘Ctrl+E’.
e) Renumber the account (this account will be made ‘inactive’, choose your replacement number accordingly)
f) Prefix the ‘Account Name’ with ‘INACTIVE’.
g) Click the ‘OK’ button to save.
h) Type ‘Ctrl+N’ to create a new account. We suggest choosing ‘Other Current Asset’ as your new account type. However, you may choose any appropriate account type, provided it is not ‘Accounts Receivable’. Use the number and name of the account you just renumbered.
i) Click the ‘OK’ button to save.
j) Make a journal entry to reclassify the renumbered account’s balance to the new account created.
k) Highlight the renumbered account, click the ‘Account’ button on the bottom of the ‘Chart of Accounts’ screen, and click ‘Make Inactive’.
l) Repeat steps a-k for each applicable account.
2. FOR ‘ACCOUNTS PAYABLE’ ACCOUNT TYPES:
a) Identify the additional ‘Accounts Payable’ account type account(s) to be made ‘inactive’
b) Display your Chart of Accounts by clicking the ‘Accnt’ icon at the top of the screen.
c) Highlight the desired account.
d) Type ‘Ctrl+E’.
e) Renumber the account (this account will be made ‘inactive’, choose your replacement number accordingly)
f) Prefix the ‘Account Name’ with ‘INACTIVE’.
g) Click the ‘OK’ button to save.
h) Type ‘Ctrl+N’ to create a new account. We suggest choosing ‘Other Current Liability’ as your new account type. However, you may choose any appropriate account type, provided it is not ‘Accounts Payable’. Use the number and name of the account you just renumbered.
i) Click the ‘OK’ button to save.
j) Make a journal entry to reclassify the renumbered account’s balance to the new account created.
k) Highlight the renumbered account, click the ‘Account’ button on the bottom of the ‘Chart of Accounts’ screen, and click on ‘Make Inactive’.
l) Repeat a-k for each applicable account.