Do you need more than one Accounts Receivable account? If you have more than one location or profit-center, you might consider setting up other Accounts Receivable accounts.
The procedure is simple. Just add a new account to your Chart of Accounts. Choose Accounts Receivable for the Type of Account. Give the new account a different name than the original Accounts Receivable account. You might want to change the name of the original Accounts Receivable account. An example would be to have an Accounts Receivable-Downtown Location and an Accounts Receivable-Uptown Location. You now have two Accounts Receivable accounts.
When creating a Sales Invoice, QuickBooks will ask you to specify the Accounts Receivable account to use. You must specify the correct account each time you create an invoice. Each Accounts Receivable account will have its own numbering sequence for invoices. The unique numbering system might be another reason for setting up multiple Accounts Receivable accounts.
When running an Open Invoice report for your Accounts Receivable, QuickBooks will default to showing you all Accounts Receivable amounts. If you want to see only the amounts for a specific location, modify and filter the report by choosing the correct Accounts Receivable account.
By using the Class feature of QuickBooks, you are able to separate income and expenses by locations/profit-centers on the Profit and Loss Report. If you set up multiple Accounts Receivable accounts, you will now be able to see how much is owed to you by the each of the locations/profit-centers on the Balance Sheet Report.
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