Sometimes, negative value transactions show up in Undeposited Funds and appear on the Bank Deposit screen (for example, if you issue a customer refund from Undeposited Funds).
You can't deposit a negative value entry by itself. The net deposit must be a value greater than or equal to zero. To resolve issues with negative transactions in Undeposited Funds, make a zero value deposit and record the negative value deposit with it.
Use the following steps to help you create a Journal entry and offset the value of a negative deposit in Undeposited Funds.
Create a Journal Entry
- Select + New.
- Under Other, select Journal Entry.
- Enter the transaction date in the Journal date field.
- On the first line, in the Account column, select the Undeposited Funds account.
- In the Debit column, enter the single line deposit amount.
- On the second line, in the Account column, select the bank account.
- In the Credit column, re-enter the single line deposit amount (if it does not already appear).
- Select Save and close.
Offset the negative value
- Select + New.
- Under Other, select Bank Deposit.
- Select the payment and the Journal Entry you created.
The total should be zero. - Select Save and close.
Now you know how to resolve issues with negative transactions.