how can i make a liability item inactive?
You’re going to have to provide more detail about what you want. The phrase liability item has no meaning in accounting.
Do you mean a liability account? Are you referring to a debt? What?
In a nut shell, i created an account for a private account head to control a certain expenses. I made provision for it and put the account under liabilities in the balance sheet. Now i am done with it. The account cannot be deleted , but i don;t want it to appear on my balance sheet again!
Well, an expense account should never have been placed under liabilities in the first place, as that is a misrepresentation of your financial position.
Regardless, if any transaction has been allocated to that account, you cannot delete it. You have already made it a part of your accounting records.
If you have not entered any transactions, you can delete it under
Chart of Accounts, the same place you created it. Click on
Edit for the account.
Your other alternative is to reallocate all the transactions in that account to their appropriate expense accounts. Then you could delete the unwanted account.
Thanks a lot. I will try that.
I did exactly as u said. I was able to delete one of the items . But the second one is showing: “This record can not be deleted because… it has …reference record.” I clicked on it but it’s empty…i used search,i could not fine any record under that heading again! Please , what is the way out?
Trust me. Something, somewhere does reference that account. A liability account may show as empty when things have been cleared from it yet still be involved in other transactions. Try these steps first:
- Make sure there is nothing in the
Suspenseaccount on the Summary page. There should not be. If there is, drill down and see what the transactions are and fix them:
- In the
Cash Accountstab, drill down on an account balance, then sort by clicking on the Account column heading. Look for anything related to the problem account and fix it. Repeat for all cash accounts.
In telling you these things, I am assuming that when you say you created this liability account, you actually created an account that did not exist before. That is, you did not rename an account that already existed. If the account already existed, it was probably a control account created automatically by Manager and cannot be deleted.