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September 10, 2023
Question

How do I move category for undeposited fund to income?

  • September 10, 2023
  • 1 reply
  • 9 views
would like to move category from undeposited fund to income.  Have cleared undeposited account but need in correct category.  How do I do this?

1 reply

Level 5
September 10, 2023

Hello there, @info1947. Undeposited Funds is a special account in QuickBooks Online that holds customer payments until they are physically deposited at your bank. 

 

You can review and modify the income account assigned to your sales item in order for the correct category to display. I'll show you how:

 

  1. Click on the Gear icon, and select Products and Services.
  2. Go to the Products & services tab.
  3. Locate the item name and hit Edit under the Action column.                                                                                                                             
  4. Scroll down and go to the Income account field.
  5. Select the appropriate account from the list.
  6. Check the box for Also update this account in historical transactions if needed.
  7. Once done, click on Save and close. Kindly refer to the snapshot below:

        

 

Furthermore, create a journal entry to move money between accounts and force your books to balance in specific ways. Here's how:

 

  1. Click on + New.
  2. Select Journal entry.
  3. On the first line, choose an account from the Account field. Depending on if you need to debit or credit the account, enter the amount in the correct column.
  4. On the next line, pick the other account you're moving money to or from. Depending on if you entered a debit or credit on the first line, enter the same amount in the opposite column.
  5. Check the amounts - you should have the same amount in the Credit column on one line and the Debit column on the other. This means the accounts are in balance.
  6. Add information in the memo section so you know why you made the journal entry.
  7. Select Save and new or Save and close.

 

I'd also recommend seeking advice from your accountant to determine the appropriate accounts to use for accurate bookkeeping. Additionally, visit this guide in case you need to swap the debits and credits or delete it completely: Reverse or erase a journal entry in QuickBooks Online.

 

Here's also what to do if you find out you have either more or fewer of an item than QuickBooks shows.

 

I’m always ready to assist you if you have any other questions or concerns about managing your account. Thanks for dropping by, and I wish you a good one.