If you paid a Payable using the wrong expense account the following steps will show you how to fix the mistake and offset the correct account. This is also known as “reclassifying an account”.
The Payable below is for office supplies however the expense account used is 6230 which is for “Vehicle”.
To reclassify the account press the Adjust A/P button. Then press Load All. The window will then populate with a list of all the payables (open and closed) for this vendor.
Fill out the Description and Additional Memo fields at the top of the window. In the Credit Amount field enter the dollar amount of the payable (use a POSITIVE amount). Make sure the Offset Account field shows the expense account that is on the payable you’re fixing. Then place your cursor in the Applied field and enter the same $ amount you used in the Credit Amount field (use a POSITIVE amount here too). When done press the OK button.
You will then be taken back to the Payable window. Notice that Paid checkbox no longer has a check in it and the Owed amount is negative. The correct Owed amount will show once you are finished with this process.
Press the Adjust A/P button again and press Load All.
Fill out the Description and Additional Memo fields at the top of the window. In the Credit Amount field enter the dollar amount of the payable (this time use a NEGATIVE amount). In the Offset Account field enter the expense account the transaction should have originally hit. Then place your cursor in the Applied field and enter the same $ amount you used in the Credit Amount field (use a NEGATIVE amount here too). When done press the OK button.
The process is now complete. You will be returned to the payable window and the Paid checkbox will once again be marked and the Owed amount $0.
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