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S
SG91
November 30, 2020
Question

Negative Undeposited Funds & Journal Entries

  • November 30, 2020
  • 1 reply
  • 17 views

We've had 2 journal entries stuck in our Bank Deposit page for almost 2 years. When looking at the Undeposited Funds register, I see that the balance has mostly always remained in the negatives (I've looked as far back as 2014) and that the journal entries for 2018 were to zero out the UF account so that now it properly increases with payments and decreases with our deposits. In my research, someone suggested to deposit these journal entries to a clearing account and create another journal entry from that clearing account, however, when I make the deposit it brings the UF account back into the negatives. How can I get rid of these journal entries stuck in the Bank Deposit, while keeping the UF account balanced? 

1 reply

C
ChristieAnn 11
Level 9
November 30, 2020

Hi there, SG91.

 

To follow through to the suggested by someone you mentioned, you'll need to deposit those journal entries to a clearing account. To do this, you'll need first to create a new journal entry from the clearing account to transfer the amount to Undeposited Funds. Then, make sure to select the old and new journal entries when depositing those transactions. I'd recommend consulting an accountant for guidance so your account stays accurate.

 

Here's how to create Journal Entry:

 

  1. Select + New.
  2. Under Other, choose Journal Entry.
  3. Enter the transaction date in the Journal date field.
  4. From the first line in the Account column, select the Undeposited Funds account.
  5. In the Debit column, enter the single line deposit amount.
  6. On the second line in the Account column, choose the bank account.
  7. In the Credit column, re-enter the single line deposit amount.
  8. Hit Save.

 

For additional information about how to offset the value of a negative deposit in Undeposited Funds, you can click this article: How to clear negative entries from Undeposited Funds and the Bank Deposit screen.

 

Please refer to the articles below on how you can generate a report that shows your total Undeposited Funds. Then, to see more information about Undeposited Funds account and how to combine multiple payments together in QuickBooks.

 

 

Should you need further assistance, please do not hesitate to post again by clicking the Reply button below. I'll be glad to work with you again. All the best!

S
SG91Author
November 30, 2020

Thank you for the reply, but I'm not sure I understand yet. It sounds like you want me to make the deposit of the journal entries in the Bank Deposit page, then reenter another journal entry in UF? Wouldn't that just put it right back into the Bank Deposit page? I asked the accountant about this but he says it is just double entry deposits and errors over the years making the UF negative and he was correcting UF register with the journal entries, but he says he doesn't know how to get it out of the Bank Deposit since the journal entries aren't connected to specific customers. I looked at that first link you provided, but I don't understand that either. "Select the payment and the Journal Entry you created. The total should be zero." It says to select the payment and the journal entry for a total amount of zero, but there is no other payment in the Bank Deposit, only the Journal Entries that balance out the UF register.

C
ChristieAnn 11
Level 9
December 1, 2020

Hi there, SG91.

 

Thank you for coming back and for providing what you've performed to fix the issue. I'll provide some clarification I shared above.

 

You'll need to create first a new journal entry from the clearing account to transfer the amount to Undeposited Funds. Then, you'll have to record a deposit and select the old and new JE to offset the value of a negative in Undeposited Funds. Please note that even the journal entry aren't connected to specific customers, the entry will still show in the Bank Deposit as UF. You'll have to make sure you choose those entries when depositing them to make the UF balance.

 

Then, I have updated the answer above to follow through on using a clearing account to remove the pending in your undeposited funds.

 

 Please know I'm always around to help with any QuickBooks issues you may be having. Take care!

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