Allow journals to Accounts Payable/Receivable
Unlock Accts Receivable and Accts Payable GL accounts. Currently unable to enter AJEs that require it. Even our auditors are asking why we cannot do this in Xero as with other accounting systems. Previously Xero responded by saying it's an account integrity issue...but accounting is an integrity issue! Too many hours wasted trying to work around this (and please don't suggest creating another account, as in Accts Rec 2)
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Freya Pieroz
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If you need to alter the accounts payable on your balance sheet to make it look like you have less owing than your bills payable would suggest, the easiest way to do this is with a bill credit note. Increasing accounts payable is done with a bill. Altering accounts receivable is likewise done with invoices and invoice credit notes.
I would assume for the accounts receivable, you want to journal something like a provision for doubtful debts. I usually get around this by creating a credit note for the debt that is doubtful but not applying it. This reduces the accounts receivable balance without removing the potential for the invoice to be paid, and ensures that everyone with access to the accounts can see that you are aware of and following up on it. Before it actually gets applied to the unpaid invoice, the line item Provision for Doubtful Debts gets changed to a Bad Debts Expense, but nothing else needs to be. If it actually gets paid, you edit the credit note to have zero value so that there is a record that you considered this debt doubtful but that it got paid (customers who cause you to doubt them are not good customers).