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Level 1

How do I reverse a deposit that was made into a bank account from Undeposited Funds?

I recently took over booking keeping for a company and am cleaning up years of transactions that were applied to "Undeposited Funds" but never deposited.  Unfortunately, I've had to go back into each transaction and edit them one at a time individually.  Today I accidently deposited all of the remaining transactions to one of the bank accounts.  How do I reverse the deposit so that all of those transactions are back in "Undeposited Funds" so I can continue editing them?
Solved
Best answer 12-10-2018

Accepted Solutions
Level 7

Open the deposit, CTRL+D to delete it.  The payments will...

Open the deposit, CTRL+D to delete it.  The payments will go back into the Undeposited Funds account.

View solution in original post

19 Comments
Level 1

What is the purpose of "undeposited funds"

What is the purpose of "undeposited funds"
Level 7

It enables you to match the deposits in QB with the depos...

It enables you to match the deposits in QB with the deposits on your bank statement more easily.  I think of it as an envelope in my desk drawer.  As I receive cash/checks, I put them in the envelope.  When I'm ready to make a deposit, I move them from the envelope to the deposit window.  When I reconcile my bank statement, the amounts match (rather than, e.g., 12 entries in QB that equal 1 deposit on the bank statement).
Level 15

It provides for a Date difference between when you got th...

It provides for a Date difference between when you got the funds and when you did the banking, as well. Here is how I teach it: If the customers' due date is the 15th, and you get mail from the 12th to the 15th, but don't do the banking deposit until the 17th, you want to show the customers have paid on time, so that separation of steps provides that separation for date of each activity: Payment is separate from Deposit of that/those payments. Also, I like to Organize my deposits into personal checks and  Bank-issued checks, because I have had occasion where the Bank issued checks were bundled in an envelope (and held up at the processing service), making the customers' payments late, and they have had to take it up with their banks.
Level 7

Open the deposit, CTRL+D to delete it.  The payments will...

Open the deposit, CTRL+D to delete it.  The payments will go back into the Undeposited Funds account.

View solution in original post

Level 1

Thank you!  That probably seemed like a dumb question, bu...

Thank you!  That probably seemed like a dumb question, but I was afraid I'd loose all of that transaction history if I deleted the deposit.
Level 7

Never a dumb question, always best to be sure.  You're we...

Never a dumb question, always best to be sure.  You're welcome.
rwz
Level 1

I cannot get the deposit to delete--I deleted the JE firs...

I cannot get the deposit to delete--I deleted the JE first, and now cannot delete either the Dep or Pay.
rwz
Level 1

QB allowed that sequence on another entry reversal...  ?

QB allowed that sequence on another entry reversal...  ?
Level 1

Even more stupid question.....how/where do I open the dep...

Even more stupid question.....how/where do I open the deposit?
Level 7

It depends on which QB you are using.  In QBO, on the lef...

It depends on which QB you are using.  In QBO, on the left click ACCOUNTING to open your chart of accounts, highlight your bank account, on the far right click VIEW REGISTER.  Find the deposit, click on it, then on the right click DELETE.  In QBDT, CTRL+R to open your bank account (or BANKING > USE REGISTER), locate the deposit (you can use GO TO to locate it), highlight it, then right-click and click EDIT DEPOSIT OR DELETE DEPOSIT.
Level 15

Open a deposit by using Edit.

Open a deposit by using Edit.
Level 15

There should never be a JE for Undeposited Funds. That ca...

There should never be a JE for Undeposited Funds. That can corrupt this account. And a JE is an extra transaction; you should not need it if you already have this data in the file.

Level 1

Re: Open the deposit, CTRL+D to delete it. The payments will...

I don't see the deposit.  How do I find it

 

Moderator

Re: Open the deposit, CTRL+D to delete it. The payments will...

Hello there, @ladybugknox97.

 

Thank for joining this conversation. Allow me to chime in for a moment and help make sure that you can locate the deposit in your QuickBooks.

 

Just to confirm, may I know what QuickBooks version you're currently using? Is it a Desktop or an Online version?

 

In the meantime, one of our Allstar @Lexiesmemere provided the steps for both versions that can surely help you with locating the deposit. You can check that out in this thread.

 

That should point you in the right direction. Please let me know how it goes or if you have any follow-up questions or concerns in the comment section. Take care and have a wonderful weekend.

CV5
Level 1

Re: Open the deposit, CTRL+D to delete it. The payments will...

I am having a similar problem. I need to delete a deposit that consisted of 3 items. The items seem to be sitting in undeposited funds. When I try to delete the items in the items from Chart of Accounts --> Undeposited Funds --> Account History I get the message "This transaction has been deposited. If you want to change or delete it, you must edit the deposit it appears on and remove it first.". Sounds logical, but when I go to Accounting --> [My Bank Account] --> Account History I can't see the 3 items nor a single item that is the total of the 3 for that date.  What am I doing wrong?

QuickBooks Team

Re: Open the deposit, CTRL+D to delete it. The payments will...

Hi there, @CV5.

 

Thanks for joining this thread. Allow me to jump in and provide some additional information about deleting deposit payment in QuickBooks.

 

The reason why you're getting this error is when the payment transaction that you're trying to delete is still linked to a bank deposit (Deposited to main account). What you need to do is delete the bank deposit first before we can delete the payment. 

 

Here's how:

  1. In the Chart of Accounts, open the deposit transaction.
  2. Press Ctrl + D on your keyboard to delete.
  3. Once done, you can go back to your Undeposited Fund, and from there you can now delete the payment. 

If you need further assistance with the steps from our live support, I recommend contacting our QuickBooks Desktop Support Team. They have the tools to pull up your account and do a remote session. 

 

Here's how you can contact our live support:

  1. Follow the Official Intuit Contact link.
  2. Select your QuickBooks product.
  3. Select an issue type from the menu below, you need only to select two options for the contact information to appear.
  4. Click Start a message at the bottom.

This will get you on the right track. Feel me in if you have any other questions. Have a good one. 

Level 1

Re: There should never be a JE for Undeposited Funds. That ca...

Hi its interesting you said this.  I'm trying to clean my undeposited funds account from 2017. I have a restaurant and our past bookkeeper posted daily sales as a single journal entry with the cash going to undeposited funds. She also used JE and Transfers to record when we replenished our petty cash account and made deposits to the bank account. Now my undeposited funds register has loads of negative transactions in addition to all of the JE cash income sitting in it. I'm not sure how I should go about correcting this. Can you help me please?

QuickBooks Team

Re: There should never be a JE for Undeposited Funds. That ca...

Thank you for the details about how the deposits were recorded, @freestylin.

 

I'm here to help clear the negative balance in the Undeposited Funds account.

 

If payments were already deposited to the right bank account, you can delete the duplicate entries from this account.

 

Before making any changes since the process can't be reversed, I recommend backing up your company file.

 

To delete the journal entries:

  1. Go to your Banking menu.
  2. Select Use Register.
  3. Select Undeposited Funds, then click OK.
  4. Double-click the JE to bring up the transaction, one at a time.
  5. Press CTRL + D on your keyboard to delete it.

You can then deposit the payments. Here's how:

  1. Go to your Banking menu, then select Make Deposits.
  2. Select the payment in the Payments to Deposit window.
  3. Select the bank from the Deposit to box where you want to post the funds.
  4. Click Save and close.

You can read through this article for additional information with the solution above: Understand how the Undeposited Funds account works.

 

Upon sharing this, I still suggest consulting with your accountant. He/she might have specific instructions on how to handle the deposits sitting in the Undeposited funds account. These are very old transactions and you may be working in a closed period of your books.

 

Feel free to leave a comment below if there's anything else you need with clearing up the Undeposited Funds account. I'd be glad to help you further.

Level 1

Re: There should never be a JE for Undeposited Funds. That ca...

Thank you very much for your help @MaryLandT

 

I don't have an issue with overstated income. My issue was that transactions were manually posted to UF using journal entries. Which in reading another one @qbteachmt replies I think I figured it out. I should not have manually posted to UF, so to reverse this I will edit each JE to post to a Bank account to represent cash in transit. I've started this process and it seems to be working the account balances are moving in the correct direction. I will updated as I'm finish.

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