QuickBooks doesn’t allow you to record a transaction that contains the following accounts:
- Two A/R accounts
- Two A/P accounts
- One A/R account and one A/P account
When you try to save these transactions, you will get a warning message that says:
Warning: You cannot use more than one A/R or A/P account in the same transaction.
This article will help you to deal with the warning message. You can select from the following options in order to work around this warning message:
Manage Bad Debt In Accrual Method
You require an Allowance for Bad Debts account while recording a bad debt in the accrual method.
Setting up the Allowance for Bad Debts account as Other Current Asset will help you in avoiding or resolving this error. You have to set up a clearing account as a go-between for two A/R accounts while recording journal entries.
Write Off A Receivable Against A Payable
If there is a customer who is also a vendor then you will have to write off a receivable a payable. This can’t be done in a single transaction because that transaction will already have an A/R account and an A/P account. You are supposed to use a clearing account make two different transactions.
Transfer An Amount Between A/R Or A/P Accounts
If there are more than two A/R or A/P accounts and the transaction you recorded was for the incorrect account then you have to modify and correct the original transaction or you can also create a journal entry to a clearing account and enter a second journal in order to record it to the appropriate A/R or A/P account.
Remove A/P As The Default Vendor Pre-fill Account
Removing A/P as the default vendor pre-fill account leads to use to two A/P accounts in a single transaction. You may face a warning message when you set up QuickBooks to automatically pre-fill accounts for a vendor and you select A/P as the default account. In order to avoid this issue, you need to remove A/P from the vendor’s Account Settings and then you only have to use expense accounts for the vendor.
- From the main menu, go to Vendors and then click on the Vendor Center.
- Double-click on the vendor name from the Vendor Center window.
- From the Edit Vendor screen, you need to go to the Account Settings tab and then remove Account Payable. Make sure that the drop-down should only have expense accounts.
- Click on OK.
Reach Us For Support
The provided solution should allow you to resolve the You Cannot Use More Than One AR Or AP Account In The Same Transaction issue. However, if you are not able to resolve this issue then you can get in touch with us at our toll-free QuickBooks Technical Support Phone Number +1800-567-0425 to get instant support for your issues.