You can select your undeposited funds and bank account as the source account of your journal entry to zero out the negative balance. Let me who you how.
Once done, you'll have to deposit the journal entry to offset the negative credit card balance:
Additionally, I've got you this helpful article for guidance in preparation for the 2020 tax season: QuickBooks Online Year-end Checklist.
If you have any other questions, please let me know in the comments below. I'll be here to lend a helping hand.
I'm sorry but this didn't seem to fix the problem. To be clear, there was a $331.63 withdrawal from the checking account equal to a client CC refund. This was also paired with a $23.96 deposit for another client's CC charge for a service. This left a net withdrawal of -$307.67, (including a $1.04 CC fee). When I enter the journal entry, as you instructed, it creates a positive balance, (debit $331.63 to Undeposited funds; credit $331.63 to checking). It shows a deposit $331.63 in Bank deposits and this is a withdrawal. It will not match to the downloaded bank transaction. I'm left with the same problem unfortunately.
Hello there, @brentbernard-cou.
You can write a check or create an expense transaction to record the money you take away or withdraw from your bank account. I've added a screenshot for your reference.
I'm adding these articles to learn more about how QuickBooks handles your expense-related transactions:
Lastly, I'd recommend consulting with an accountant so you'd be assisted in tracking your income and expense transactions correctly.
Keep me posted if you have other questions or concerns. I'm always here to make sure you're able to achieve your goal.
I have the same issue of I need to record a negative deposit. I followed your steps above except I had all of the items in the debt column. When I go to bank deposit it still will not let me add a negative deposit to my bank.
Thanks for visiting the Community today, PauleyJK.
Based on the scenario, we’ll have to create a clearing account. Then, transfer all related transactions to the account and manually categorize them. I’ll help and walk you through how to add it.
Once done, use the Transfer feature to move the entries to the clearing account. For detailed instructions, click here. It’s scenario-based and I suggest following the steps that fit your situation.
Additionally, the following links will guide you on how to classify your bank entries, fix negative deposits, and track your daily sales.
Should you need further assistance when working in QBO, please let me know. I'm always here to help. Have a good one.