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

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. 

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.