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CAE5
Level 1

Undeposited Funds

I have undeposited funds displaying that have actually been deposited. What is the best way to clear these out so that all the tables are updated correctly to reflect the deposit/payment and the balance is zeroed out on the owed amount? 

 

Thanks,

5 Comments 5
KlentB
QuickBooks Team

Undeposited Funds

I can help you with that, CAE5.

 

After putting the payments into the Undeposited Funds account, you'll have to create a bank deposit to combine them into a single record. This way, QuickBooks matches your real-life bank activities. I'll show you how:

 

  1. Select Banking from the top menu bar.
  2. Choose Make Deposits.
  3. In the Payments to Deposit window, select the payments you want to combine, then click OK.
  4. In the Make Deposits window, select the account you want to put the deposit into from the Deposit to drop-down menu.
  5. Enter the date you made the deposit at your bank, then add a memo as needed.
  6. Review the deposit total.
  7. When you're done, select Save & Close.

However, if these are duplicate payments, you'll have to delete them to ensure that books are accurate and up-to-date. Here's how to do it:

 

  1. Select Lists from the top menu bar.
  2. Choose Chart of Accounts.
  3. Find and open the Undeposited Funds account.
  4. Locate and then right-click the duplicate transaction.
  5. Select Delete Payment/Delete Deposit.
  6. Hit OK to confirm the changes.

I also recommend reading this article to learn more about how bank deposits work with the Undeposited Funds account: What are Bank Deposits in QuickBooks?

 

You can always find me here if you have any other concerns or follow-up questions. Have a great rest of the day.

CAE5
Level 1

Undeposited Funds

Thanks for the response...the amount is already accounted for as part of a group deposit that was input...and the amount of this group deposit matches the amount on the bank statement...Plus the month that this happened in 2020 has already been reconciled matching the group deposit to the bank statement. So if I do this I will also need to update the reconciliation...correct?

 

At this point all I really want is for it to go away, this is one of about 5 deposits that were obviously input incorrectly. But to input them at this point as a separate deposit in QB, the deposits would not match up to the bank. I looked at the customer invoices and they reflect a zero balance and have the payment recorded. Is there a way to maintain the payment but remove the undeposited status?

 

Thanks,

CAE5

LollyNino_C
QuickBooks Team

Undeposited Funds

I'm here to help you clear up things about Undeposited Funds, @CAE5

 

The Undeposited Funds account is a special temporary account that QuickBooks uses to hold payments received from invoices before you deposit them into the bank. You can handle those payments by combining the deposit or depositing them by a group. 

 

Let's say you had three separate invoices that were paid all at once from a customer. Your "real life" bank that handles your checking account recognized all three payments as a single deposit. When you enter these into QuickBooks, you'd want to mimic the bank and combine the deposit into your QuickBooks checking account.

 

Please check this article for additional information: What Is the Undeposited Funds Account.

 

For us to reconcile the transactions that are in our Undeposited Funds account. We can deposit these payments to their corresponding bank accounts first.

 

From there, we can reconcile the bank where we deposited the funds. I've attached articles that will help us clear the undeposited funds and the reconciliation workflow:

Leave a comment if you need further assistance about depositing a payment. I'll always be right here if you need help. 

CAE5
Level 1

Undeposited Funds

I apologize, perhaps I was not explaining my situation clearly. I understand fully what is being provided as a solution, however this would work fine if the funds are just sitting in the undeposited funds table waiting for action to be taken.

 

My situation is a bit different. Some how several amounts have ended up on this undeposited funds table, but... these exact same funds have been manually input via "make a deposit" so the actual deposit is already in the system. I suppose I could access the "make a deposit" table and go to the date this deposit is stored on and delete it. Then use the undeposited action and redeposit the funds. The month in which this happened has already been reconciled and I was trying to avoid having the reconciliation out of balance. is this the only way to clear this out of the undeposited funds or is there another way around it?

 

Thanks,

 

 

Jovychris_A
QuickBooks Team

Undeposited Funds

 

Thanks for adding more details, @CAE5.

 

In addition to my peers' responses, let's make sure to link the deposits first with customer invoices. This will close all the invoices related to a specific deposit and avoid QuickBooks from creating unclassified income.

 

When you remove a reconciled deposit, it'll cause a great impact on your account. This is because your transactions for a specific month won't be intact and will show that they aren't matched with your bank statement.

 

In your case, you'll want to clear out the deposit transactions in UF, you'll have to open your UF account register and perform the process from there. Before doing so, I'd recommend consulting your accountant. Hence, this is to make sure your books are accurate and monitor your deposits well.

 

Here's how:

  1. Go to the Accounting menu.
  2. Select Chart of Accounts.
  3. Find the account then, click View register under the Action column.
    1.PNG
  4. Click the deposit to open its details.
  5. Select the Delete button.
    2.PNG
  6. Click Yes to confirm.

 

I'm adding this article to keep you guided with combining multiple transactions into a single record: Record and make bank deposits in QuickBooks Online.

 

You can make sure your financial data are accurate by pulling up the Reconciliation report. This will also let you access your reconciliation reports and check their accuracy. Just go to the For my accountant section from the Report menu's Standard tab.

 

Feel free to leave a comment if you have other questions about clearing out transactions. I'm ready to assist you anytime. Keep safe!

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