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lindak1119
Level 7
December 11, 2018
Solved

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

  • December 11, 2018
  • 6 replies
  • 14 views
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?
    Best answer by NOT MY USER ID
    Open the deposit, CTRL+D to delete it.  The payments will go back into the Undeposited Funds account.

    6 replies

    L
    lindak1119Author
    Level 7
    December 11, 2018
    What is the purpose of "undeposited funds"
    NOT MY USER ID
    NOT MY USER ID
    Level 5
    December 11, 2018
    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).
    qbteachmt
    qbteachmt
    Level 11
    December 11, 2018
    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.
    NOT MY USER ID
    NOT MY USER IDAnswer
    Level 5
    December 11, 2018
    Open the deposit, CTRL+D to delete it.  The payments will go back into the Undeposited Funds account.
      L
      lindak1119Author
      Level 7
      December 11, 2018
      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.
      qbteachmt
      qbteachmt
      Level 11
      December 11, 2018

      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.

      F
      freestylin
      June 12, 2019

      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?

      MaryLandT
      MaryLandT
      Level 10
      June 13, 2019

      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.

      C
      ckfoodbank
      September 2, 2020

      My transaction is over a year old and needs to be done in a general journal entry.  How do I do that for an undeposited funds account?

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