Bookkeepers often run into a situation where they want to create a journal entry that affects both accounts receivable (AR) or accounts payable (AP). But QuickBooks does not allow to record transactions that include either of the following:
- Two A/R accounts
- Two A/P accounts
- One A/R account and one A/P account
If you try to save these transactions on your QuickBooks then you will face this error message on your screen:
“Warning: You cannot use more than one A/R or A/P account in the same transaction.”
To tackle this situation, we suggest that you contact the Intuit certified QuickBooks Support Team of Dialsupportnumber. You can reach out to the QB Experts by calling on the USA QuickBooks Tech Support Number +1888-380-2717.
You can also choose from one of the given options to avoid this issue:
Manage Bad Debt In Accrual Method
Are you trying to record bad debt in the accrual method? If you are then you need an Allowance for Bad Debts account for that.
According to the QuickBooks Experts, for troubleshooting the error, you must set up the Allowance for Bad Debts account as an Other Current Asset. For setting it up with the normal Accounts Receivable type, firstly, you should set up a clearing account. This will greatly benefit for the two A/R accounts when you try to record journal entries.
Write Off A Receivable Against A Payable
In case you working with a customer who is also a vendor then you should write it off as a receivable against a payable. It is not possible to do this in a single transaction as QuickBooks does not allow a transaction to have both – an A/R account and an A/P account.
We recommend that you utilize a clearing account and create two transactions.
Transfer An Amount Between A/R Or A/P Accounts
Do you have multiple accounts receivable (AR) or accounts payable (AP) accounts? In that case, you can record a transaction to the incorrect account then QuickBooks requires you to correct the original transaction or make a journal entry to a clearing account. Only after that you will be able to enter a second journal to move it to the correct accounts receivable (AR) or accounts payable (AP) account.
Remove A/P As The Default Vendor Pre-fill Account
If QuickBooks is instructed to use two A/P accounts in a transaction then it is possible that you will see an error message on your screen. This error will appear QB will automatically pre-fill accounts for a vendor and you select Accounts Payable as the default account.
Get rid of the Accounts Payable from the vendor’s Account Settings to avoid this issue. Double-check that you are only using expense accounts for the vendor.
- Open your QuickBooks and go to the Vendors menu.
- Choose Vendor Center.
- Now, double-click on the name of the vendor in the Vendor Center window.
- The Edit Vendor window will open up on your screen.
- Head to the Account Settings window and remove Accounts Payable.
- Double-check that drop-down has only expense accounts.
- Click on the OK button to confirm the changes.
Reach Us QuickBooks Support
The steps given above are effective in resolving the You Cannot Use More Than One AR or AP Account in the Same Transaction error. However, if you are unable to fix this error on your own then you can get in touch with us at our 24×7 QuickBooks Support Phone Number +1888-380-2717 to get instant fix & support for all QB errors and issues.