QuickBooks payment deposit won't post because its a negative

Hello programs-goabc-o,

Thanks for taking the time to reach out to us here. QuickBooks is a powerful program that enables you to get your work done faster. I'll be glad to point you in the right direction so you're able to match your transactions with ease. 

Based on what you've described, I recommend creating a sales transaction and receiving a payment to the Undeposited funds account. Here's how: 

1. Navigate to the + New icon and select Invoice/Sales Receipt.
2. Enter the details of the sale then hit Save.
3. On the same transaction, hit Receive Payment. You can also close the invoice or sales receipt and click on + New icon and select Receive payment.
4. Pick the invoice to pay and ensure the Deposit to field is showing Undeposited Funds. 
5. Makes sure your changes are saved. 

From here, you'll need to create a refund receipt showing the original refund amount. Here's how: 

1. From the + New button click Refund Receipt.
2. Enter all the information with the correct date.
3. The Refund From field has to have Undeposited Funds.
4. Click Save and new.

Once you've done this, you'll have to create a journal entry to move the funds from Undeposited Funds account to the bank account in question.

1. To do this, navigate back to the + New and click on Journal Entry.
2. Set the date of the transaction that is same as bank posted transaction date.
3. On the first distribution line of the Journal Entry, select the Bank Account.
4. Enter the total amount that you received from the bank in the Credits column. The amount is the difference between the sale and the refund.
5. On the second distribution line, choose Undeposited Funds.
6. Set the Debits column to the same amount as the Credits column.
7. Click Save and close. This will show a deduction from the bank account in the Bank Register in QBO.

Lastly, you'll need to group the journal entry with the payment and refund to create a $0 deposit.

1. Click the + New icon then Bank Deposit.
2. Select the payments (negative and positive) and the Journal
3. The entry you just created (the total should be zero).
4. Click Save and close.

Finally, if you go to the Banking tab you should be able to match the transaction. Give this a try and let me know how you make out. I'll be one message away in case you have other questions. 

Thank you for the reply JamesM4.  The trouble I am having is both transactions were processed through Quickbooks Payments and I cannot seem to go in and change the PAID transactions to deposit into the UNDEPOSITED FUNDS account as they are set by default to go directly into the bank account which QuickBooks Payments are linked to.

Glad to hear back from you, programs-goabc-o. It's vital I have a visual reference of what you're seeing so you can get to the bottom of this faster. I see you benefiting more by contacting our support team so they can share your screen and help you with this further. Here are our contact details: 

• Schedule a Callback or start a Chat: click (?) in the upper right in QuickBooks Online > enter "Contact support" > choose Contact Us > provide a brief summary > select Let's Talk > choose Get a callback or Start a Chat.
• Social Media: Facebook, Twitter, and Instagram.
• Support hours are from Monday to Friday between 9 a.m. and 8 p.m. ET. 

Feel free to keep me posted on how you make out. I'll be one message away in case you need anything else.