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Level 3

Fixing Negative Undeposited fund amount.

A negative amount shows up in undeposited funds on balance sheet.  Do I want to fix this if the cause is that the deposit date is earlie than the payment date?  Not sure why I have a negative balance.

 

Secondly, I saw the directions, but I am not sure how to get the journal entry into the deposit window to make the balance zero.  

 

Thanks.

1 Comment
QuickBooks Team

Fixing Negative Undeposited fund amount.

Hello, heazim1. 

 

Thank you for reaching out to the Community. Undeposited funds can show a negative value on the balance sheet if payment is deposited, with a date that pre-dates the payment. If a balance sheet run between those two dates, It will show a negative. Let's review the payment and deposit to make sure they have the correct dates.  

 

It could be since QuickBooks Desktop automatically holds the funds in the Undeposited Funds account when receiving payments from customers. To clear the amount in this account, you’ll need to make deposits. 

 

Let's create a journal entry and deposit the payment to zero out the balance. Here's how:  

 

  1. Go to the Company menu and select Make General Journal Entries.
  2. Fill out the fields to create your journal entry. Make sure your debits equal your credits when you’re done.
  3. Select Save or Save & Close.

Now let’s deposit the payments. Here’s how: 

 

  1. Go to the Banking menu.
  2. Select Make Deposits.
  3. Select the payment in the Payments to Deposit window.
  4. Choose the bank where you want to deposit the funds.
  5. Click Save and Close.

 

You can go through Understand how the undeposited funds account works for additional information.   

  

Please let me know if you need further assistance with this. I'll be happy to lend a hand. Have a great day ahead of you!

 

 

 

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