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Intuit
15 helpful votes

How to resolve negative deposits

If a total deposit is negative, you must create a journal entry to move the funds from Undeposited Funds to the bank account, and then group the journal entry with the payments to create a $0 deposit and remove the payment from Undeposited Funds.

The following sections guide you through the steps necessary to resolve a negative deposit.

Create the journal entry

The first step is to create a journal entry to move the funds from Undeposited Funds to the appropriate bank account.

  1. Select the Create icon ⨁.
  2. Under Other, select Journal Entry.
  3. Enter the Date of the transaction.
  4. On the first distribution line, select Undeposited Funds from the drop-down list in the Account column.
  5. Enter the amount of the deposit in the Debits column.
  6. On the second distribution line, select the appropriate bank account from the Account column drop-down list.
  7. Enter the amount of the deposit In the Credits column.
  8. Select Save.

The deposit is recorded as a deduction from the bank account.

Group the Journal Entry with the payments

Once you have created the Journal Entry, you must group it with the payments to create a $0 deposit and remove the payments from Undeposited Funds.

  1. Select the Create icon ⨁.
  2. Under Other, select Bank Deposit.
  3. Select the payments and the Journal Entry you created. The total should be zero.
  4. Select Save.

The payments are grouped with the Journal Entry and removed from Undeposited Funds.

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