Old undeposited funds

Hi there, Thanks.

I'll share some procedures that you'll need to do so the payments will correct. 

You'll need to delete the deposit in the Chart of Accounts (COA), then create a Journal Entry (JE). This way, the amounts will go to the perspective accounts. I'm happy to guide you in accomplishing this.

Before jumping into the steps, I'd recommend backing up your company file. So you have a copy on your old file. 

Once done, you can delete the payments by referring to the screenshot.

For more details, check out this article: Record and make bank deposits in QuickBooks Desktop. 

After that, go to the Company menu and select Make General Journal Entries. Then complete the Name, Date, Entry No., or Amount and hit Save and close. 

For more guidance, check out this page: Create a journal entry in QuickBooks Desktop for Windows or Mac. 

I'd also suggest consulting an accountant to help you in creating a JE. To ensure your books are accurate. 

I've also added articles about reconciling accounts, managing COA, and other related topics. 

• Reconcile an account in QuickBooks Desktop
• Learn about the chart of accounts in QuickBooks
• Deposits

Let me know if you need additional assistance. I'm happy to help you out. Keep safe!

Thank you for your answer. The payments in the Undeposited Funds that I just deposited were correctly deducted from the customers' balances when I entered them in Quickbooks (from 2009 to 2017). If I understand correctly,  the Undeposited Funds Acct. Is just a holding place until I select the payments made on that day and hit "save." At that time the total amount of the money received shows on the balance sheet under Checking/Savings Balance. Because I never selected those payments and saved them in the undeposited funds,  that means those totals did not show up on the Balance Sheet for all those years! Since I just selected and saved them,  it added $128,984.54  to my balance sheet for Checking/Savings for the last quarter of 2020. Can't I just do one Journal intro to delete that money from my checking/ savings balance? Of course I would have explaining to do if audited. 

Thank you for your answer.  The payments I just deposited from the Undrposited Funds Acct were correctly deducted from the customers' balances when I entered the Received Payments (back in 2009-2017). I checked the history for some of the customers and the payments were only deducted once which is the way it should be.  If I understand correctly,  the Undeposited Funds Act is just a holding place until I select each payment and "save". Then the amount of the selected payments shows on the Balance Sheet under Checking/ Savings balance.  The payments I just saved totalled $128,984.54 and added that amount to the last quarter of 2020. These payments are for several previous years! That means my checking/ savings totals were incorrect for those years on the Balance Sheet.  Can't I just make a Journal entry to subtract that amount from the Checking/ Savings balance? I am just learning!

I appreciate you getting back to us and sharing detailed information on your concern, @Thanks.

You're correct. The Undeposited Funds account keeps a record of payments in QuickBooks until you deposited them into your bank account. Since depositing your old undeposited funds affects your balance sheet, it's the best way to create a journal entry for this to correct the balance. However, I highly recommend seeking help from your accountant to offer you some advice on correct accounts to use when recording it.

Here's how to create a journal entry in QuickBooks Desktop:

1. Go to the Company menu, then 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.

I'm adding this article for more guidance: Create a journal entry in QuickBooks Desktop for Windows or Mac.

As always, feel free to visit our QuickBooks Community help website if you need tips and related articles in the future.

I'm still open to your replies. If you have other concerns with QuickBooks Desktop, don't hesitate to post a comment below. Have a great day ahead!

Mark,  thanks for your suggestion.  I'm going to try to do that by following the guidance on the link you provided.  Sorry it took so long to reply back.  I had some other issues to work on. I'll let you know how this turns out.