QBO: How to Exclude Partially Matched Deposit From a Prior Year

If QBO is showing these deposits from prior years, in QBO these have not been closed or reconciled.

Your first step is to find out how many of these transactions are still open.   Your accountant should have been reviewing these when preparing a tax return to make sure that your receivables and payables are up to date and not duplicate entries.

Second, once you know the amount of these transactions, have a quick chat with your accountant on the best way to resolve this, reduce sales, refile prior returns, or other options.

Unlinking and relinking the bank account will not resolve the issue because the partial transaction is in QBO and not from the bank feeds.

Most likely the accountant will give you an Adjusting Journal Entry at year-end and when you get that entry, I recommend asking this question again so that you process that entry in such a way that you can clear all these prior year entries.

Hope this helps.

Hello there, @renayys. I've got ways on how you can exclude partially matched deposits from a prior year to clean up the bank feed in QuickBooks Online (QBO), and I'll be glad to show you how.

Yes, you're unable to exclude partially matched transactions (deposits) in QBO. To clear out these old transactions, you'll have to add them from the For review tab. Then, find them in the Categorized tab to Undo them from the list and go back to the For review tab to successfully exclude the said transactions. This way, you won't be adjusting your prior years' numbers.  Here's how:

1. Go to Bookkeeping, then Transactions and select Bank transactions, or go to Banking.
2. Choose the tile for the account you want to review.
3. Select the For review tab to start your review.
4. Find the partially matched deposit and click the Add option under the Action column. 
5. Go to the Categorized tab.
6. Find the added partially matched deposit and click the Undo option under the Action column. 
7. Go back to the For review tab, then find and select the partially matched deposits' check boxes.
8. Select the Exclude option. 

For the complete guide on excluding bank transactions, please see this article: Exclude a bank transaction you downloaded into QuickBooks Online.

In case the issue persists after performing the steps above, you may create a journal entry transaction to remove the partially matched deposits. With this process, I would encourage you to consult with your accountant. This is to ensure that your prior years' balances won't be affected and to keep your financial data accurate.

Also, you're already on the right track in reconciling your accounts (every month) in QBO. You may want to check out this article as your reference if you need help in doing or fixing a reconciliation in the future: Learn the reconcile workflow in QuickBooks.

You can keep me posted on how it goes in the comments below. If there's anything else you need or concerns about managing bank transactions in QBO, I'm always ready to help. Take care, and I wish you continued success, @renayys.

Hi Rea,

Thanks for your help! I think this tactic would've worked but when I attempted to Add the transactions from the For Review tab, Quickbooks popped up an error saying "select a bank account for this deposit". I wasn't sure how to fix that since the transaction was already under the bank feed so shouldn't it already have the bank account linked to the deposit?

Either way, I decided to enter a journal entry in 2022 debiting the bank (with the remaining amount from the partially matched deposit) and crediting Undeposited Funds. From there, in the bank feed, I chose the Find Match option and filtered the dates to find my journal entry and match to the old transaction. Then I reversed the journal entry in the same month in 2022 so no prior year numbers, bank reconciliation, or undeposited balances are affected (unless you can think of a way that this would have affected anything)

Also attached a screenshot of the original error I got in the bank feed for reference

Let's make sure you'll be able to add your deposit transactions, renayys.

The Undeposited Funds account serves a special function since this is a special temporary account that QuickBooks uses to hold payments. You should be able to add transactions successfully. You'll just have to make sure to select the correct bank account other than the Undeposited Funds. To know more about how Undeposited Funds works in QuickBooks Online (QBO), I've added this article for your guide: What's the Undeposited Funds Account. 

On the other hand, with regards to your journal entry, as what @Rea_M, you can seek an accountant to check if the entries entered are correct. They can also provide you with the best alternative way on how you'll be able to do it.

Moreover, QuickBooks provides different reports that cater to your business needs. Learn how to customize them to make sure you'll get the information you need. Please read this article for more information: Customize Reports In QuickBooks Online.

Reach out to us if there's anything else you need about adding accounts. We'll always be right here to help you. 

AMAZING....

I have had 7 transactions sitting in review from April, contacted customer support, then finally had enough and went to do some research.  This worked!  THANK YOU!

You're always welcome, @LavareINC.

We appreciate you for letting us know how the steps went. We couldn't do it without your cooperation.

I'm glad that we're able to provide you with a working resolution to fix your banking issue.

Please don't hesitate to reach back to us if there's anything else you need or questions in managing the growth of your business using QuickBooks. Take care, and I wish you continued success, @LavareINC.