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JanM
Level 1

Clean up Undeposited Funds QB on Line

I need to clean & deactivate undeposited funds account. The account should have been deactivated during set up. The banks are linked to QB Online. How do I clean up without causing duplicate entries

15 Comments 15
Ashley H
QuickBooks Team

Clean up Undeposited Funds QB on Line

Thanks for reaching out to the Community, @JanM.

 

To make your Undeposited Funds balance to zero, you'll have to match and move transactions to the appropriate bank. Rest assured, this process won't cause any double entries in your account. The Undeposited Funds account works as a holding account that's used to hold payments from all of your checking and savings accounts. You can't make this account inactive or deleted.

 

Here's a couple of Community Articles that can help you with cleaning up your Undeposited Funds:

Let me know if you have further questions. I'm always here to help.

john-pero
Community Champion

Clean up Undeposited Funds QB on Line

You never ever ever get paid in person or through the mail? Undeposited Funds is where all of your received payments from paid invoices as well as sales receipts should land. You are supposed to match these to the deposits in the bank feed. The only only only way to duplicate income is to categorize cash flow (bank deposits) as income. Bank deposits are not income - only a record of cash flow- movement of funds from one current asset (undeposited funds) to another (checking account)

 

Even if you deleted every transaction that ever hits UF you  could not delete the account and at best make it inactive but I doubt you can even do that since this is a special account created by the software and if you could make it inactive as soon as your next sale the software would create it again.

 

Now this does not mean you cannot post a sales receipt payment or other payment directly into banking(never do this when a bank deposit contains more than one check or payment from multiple customers) but you still have to "match". You cannot add the bank feed as income since the sales receipt is your income.

OEL
Level 2

Clean up Undeposited Funds QB on Line

Hi Ashley H,

 

Would you happen to know how to fix a bank deposit module that has captured jounral entries that credited undeposited funds and debited an expense account?  As you probably know these journal entries are different from the typical type of entries that are recorded in the undeposited fund account.  These entries have been in the bank deposit module for  awhile and were made by different users.  Can these entries be removed from the bank deposit module without deleting them from the GL and without depositing them?  The reason I don't want to delete them is because other than these entries the bank deposit module amount agrees to the GL balance for the undeposited account. Thank-you

OEL
Level 2

Clean up Undeposited Funds QB on Line

Hi Ashley H,

 

Would you happen to know how to fix a bank deposit module that has captured jounral entries that credited undeposited funds and debited an expense account?  As you probably know these journal entries are different from the typical type of entries that are recorded in the undeposited fund account.  These entries have been in the bank deposit module for  awhile and were made by different users.  Can these entries be removed from the bank deposit module without deleting them from the GL and without depositing them?  The reason I don't want to delete them is because other than these entries the bank deposit module amount agrees to the GL balance for the undeposited account. Thank-you

Candice C
QuickBooks Team

Clean up Undeposited Funds QB on Line

Good afternoon, @OEL

 

Thanks for chiming in on this thread. I can point you in the right direction to get this question answered as soon as possible. 

 

Yes, deleting a GJE will effect all accounts listed on the transactions. However, you should review these transactions with your accountant before editing or removing. They'll know how to remove them and how it's going to effect your books based on your business. 

 

If you don't have an accountant, you can find one near you by using the link. 

 

I'm only a post away if you have any other questions. Have a great day! 

OEL
Level 2

Clean up Undeposited Funds QB on Line

How do I turn off the undeposited funds feature in QBO?

MaryJoyD
Moderator

Clean up Undeposited Funds QB on Line

I'm here to share some information about the Undeposited Funds account in QuickBooks Online (QBO), @OEL.

 

You can use the Undeposited Funds account to hold all payments you need to combine and group before recording them as a bank deposit. At this time, the feature to turn this off is currently unavailable. That would be a great addition to the current features that we have, so I’ll take note of it.

 

Here's everything that you need to know about the Undeposited Funds account: Deposit payments into the Undeposited Funds account in QuickBooks Online

 

I also encourage you to leave feedback from within the product. Here are the steps:

 

  1. Go to the Gear icon and select Feedback.
  2. Provide your product suggestion. 
  3. Click on Next to submit feedback.

 

You can check out this article for more information about providing feedback to make the program better: How do I submit feedback?.

 

To make sure that there are no payments posted to your Undeposited Funds account, go to your Chart of Accounts (COA) to view your register. Here's how:

 

  1. Go to the Gear icon and select Chart of Accounts. 
  2. Locate Undeposited Funds and click on View Register under the Action column.

 

Refer to this article for more information on how to find, sort, and edit accounts from your COA: Find, review, and edit transactions in account registers in QuickBooks Online

 

Let me know if you need further information about your Undeposited Funds account. I'm always glad to help in any way I can. Have a wonderful day!

CindyA1
Level 1

Clean up Undeposited Funds QB on Line

I need to clean up undeposited fund account in QBO.  The deposits were deposited to the bank but done incorrectly and my undeposited funds account has a balance. I have matched the deposited with the bank they were deposited and have reconciled these accounts.  Is there a journal entry that will clear my undeposited funds account to zero?

 

Thank you

Cindy

JamaicaA
QuickBooks Team

Clean up Undeposited Funds QB on Line

I'm here to share details on how to correct a reconciled deposit, @CindyA1. This way, you'll be able to determine the best action you need to take care of the issue.

 

You need track down the deposits that were made. Any adjustments you make to a reconciled one will have a significant effect on your account. That’s why, it’ll surely become out of balance.

 

To clear the funds, you can create a deposit and drop-down a line with a negative total amount. Just ensure to fill in the correct information on the Deposit page. Let’s review your register first, and note whether the deposits are for a sales account or an income account. After that, use that account when creating the deposit under the Account column on the Add funds to this deposit section.

 

You can see attached screenshot for additional reference:

j5 deposit....PNG

 

Yes, you can also create a Journal entry and offset the value of a negative deposit. I'll show you how: 

 

  1. Go to the + New and select Journal Entry.
  2. Enter the transaction date in the Journal date field.
  3. On the first line, in the Account column, select the Undeposited Funds account.
  4. In the Debit column, enter the single line deposit amount.
  5. On the second line, in the Account column, select the bank account.
  6. In the Credit column, re-enter the single line deposit amount (if it does not already appear).
  7. Hit Save and close.

 

Once done, you can now offset the negative value. Let me guide you on how:

 

  1. Select + New.
  2. Under Other, select Bank Deposit.
  3. Locate the payment and the Journal Entry you created. The total should be zero.
  4. Hit Save and close.

 

However, I’d also suggest consulting your accountant. They can give you the best advice on handling these transactions. 

 

To avoid the issue from happening in your future transactions, you can choose the bank account in the Deposit to field if you don't want to use the Undeposited Funds account. This will directly affect your bank register. 

 

For more details about undeposited funds in QBO, check out this guide here: Deposit payments into the Undeposited Funds account in QuickBooks Online.

Moreover, feel free to visit these helpful resources that can help you along the way in managing payments and other transactions in QBO: 

 

 

Don’t hesitate to tap the Reply button below if you have more questions or concerns about bank deposits and undeposited funds. The Community team is always here to help. Have a great day, and take care!

CindyA1
Level 1

Clean up Undeposited Funds QB on Line

I have tried this and it still shows the amount when I go to Bank Deposit. I think I may be missing a step in this process.

 

thank you

 

Cindy

JamaicaA
QuickBooks Team

Clean up Undeposited Funds QB on Line

Hi there, @CindyA1

 

May I know what steps you’ve done so I can help you get back to business? I’d also appreciate it if you can add screenshots. Please know that any information added will help me check this further. 

 

I’m looking forward to your response. I'm always here to help. Take good care.

CindyA1
Level 1

Clean up Undeposited Funds QB on Line

I created a GJE:  1499 Undeposited Funds DR

                             1015 Bank Acct                CR

for the amount of the undeposited funds.  

 

Cindy

 
 
 
 

 

MaryJoyD
Moderator

Clean up Undeposited Funds QB on Line

Thank you for the response, Cindy.

 

After creating the journal entry, have you tried the next steps to offset the negative value? If not yet, follow the steps I'll be providing below. 

 

Here's how:

 

  1. Go to the + New and select Bank Deposit.
  2. Locate the payment and the Journal Entry you've created. The total should be zero.
  3. Click on Save and close.

 

If you've already done with the steps and still have a balance, I suggest reaching out to your accountant for detailed guidance on how to handle journal entries. 

 

Here's more information about putting payments into the Undeposited Funds account and depositing it to your bank: Deposit payments into the Undeposited Funds account in QuickBooks Online.

 

Once you're done, you can check your Undeposited Funds account if there's no amount left from the Chart of Accounts. Refer to this article for more information on finding, sorting, and editing accounts from your COA: Find, review, and edit transactions in account registers in QuickBooks Online. 

 

I'm always here if you need further help cleaning up your Undeposited Funds account. I'm always here to help in any way. Have a great rest of the day!

MelissaCubler
Level 1

Clean up Undeposited Funds QB on Line

I have entered invoices into the system so they showed up to match the bank statement, how can I clean these out without duplicating deposits?

MariaSoledadG
QuickBooks Team

Clean up Undeposited Funds QB on Line

Let me guide you on how to make sure that you can clean up your bank transactions against duplicates, MelissaCubler.

 

In QuickBooks Online (QBO), the transactions that you'll see under the For Review tab on the Banking screen are all downloaded from your bank. If these transactions don't exist in your register, you can add them by clicking Add under the ACTION column.

 

However, if these transactions show in your Register, this means they're manually created. You can match them by selecting Match under the ACTION columns as well. This links those two so there aren't any duplicates. You'll just have to make sure that you're matching the correct transaction. For more information on how to categorize them, I've added this article to give you more details: Categorize And Match Online Bank Transactions In QuickBooks Online.

 

Furthermore, you'll want to review your accounts to make sure they match your bank and credit card statements. For more details on how the process works, go through this article for more information: How To Reconcile In QuickBooks Online.

 

Keep in touch if you need anything else about matching your bank statement. I'll always be right here to help.

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