Why are they here and how did they arrive?
The General Ledger (G/L) entries came from a refunded cash receipt in LX.
LX knows that cash was received for the deductible and it is recognizing that cash must leave the accounting software, too. However, doing so would cause the Bank Account in QuickBooks to be off by this value. The GL entry offsets this situation.
To apply the credit memo against the journal entry:
- Open the Received Payments window and select the Cash customer.
- Find the imported refund (it usually starts with an “R”) and click on the line once to highlight it.
- Click the Discounts & Credits button to verify the software found the GL entry.
- Click Done.
- Click Save and Close on the Receive Payments
- To clear the GL entry off the Make Deposits window, select Banking > Make Deposits, and check off the GENJRNL and the PMT so that the Payments Subtotal equal USD 0.00.
- Complete the deposit by clicking Save & Close.