How to Review Accounts Receivable Detail

Reviewing and reconciling accounts receivable

Updated over a week ago

Accounts receivable should be comprised of your advanced deposits (payments) for future reservations. Any payments and invoices for reservations which have already occurred that are recorded in accounts receivable must be investigated. Journal entries residing in accounts receivable are related to Stripe refunds for cancellations and should also be addressed.

Review Accounts Receivable Detail

  1. Log in to QuickBooks and select "Reports" in the sidebar menu, and select the report "Accounts Receivable Aging Detail."

  2. Select the report period as of the last day of the month under review, the aging method as "current," and run the report.

  3. Review all invoices for reservations which have already occurred. Towards the end of the month under review, invoices for bookings which have not completed as of month-end, and for which the payment is pending, should be the only invoices with an open balance in accounts receivable.

  4. If an invoice for a completed stay remains and payment has been received but not recorded in QBO, run your reservation payment automation in VRPlatform for the specific guest, and the missing payment will push through to QBO and the invoice will be removed from accounts receivable.

  5. If a payment resides in accounts receivable for a completed reservation, search for the guest name in QBO by selecting the magnifying glass to view the guest profile.

  6. Sometimes a recorded payment needs to be applied against the invoice, sometimes there is a duplicate payment that needs to be deleted, or there is a payment that needs to be applied to a cancellation invoice.

  7. To apply an unapplied payment to an existing invoice, select new transaction, payment, and save and close. This unapplied payment will be applied against the existing invoice and will disappear from accounts receivable.

  8. To delete a duplicate unapplied payment, select the payment and edit, select "more," and delete the duplicate payment. Sometimes there is a duplicate payment because in your bank feed, you matched the deposit directly to the invoice instead of matching the deposit to the payment journal entry. Look at each payment in the customer profile, which should be recorded to the clearing account. If one of the payments is directed to the bank account, delete the payment transaction that is recorded to the bank account. The only payments that should be directed to the bank account should be those that do not go through Airbnb or Stripe.

  9. For an unapplied payment which is recorded in a customer profile against an invoice for a reservation which has been voided due to cancellation, record the cancellation invoice for the payment received. Be sure to create a new invoice instead of amending the voided invoice.

  10. Review journal entries in accounts receivable. These journal entries represent Stripe refunds. Search the guest name for the refund. If it is a cancellation, you will see a voided invoice, a payment, and a journal entry for the refund. Select new transaction, payment, and save and close and the journal entry will be applied against the payment and the overdue payment will turn to zero. The journal entry will then be removed from accounts receivable.

  11. Once accounts receivable is reconciled, the only transactions that should remain are payments for future reservations, and invoices for which have a true open balance.

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