Remove erroneous undeposited funds in QuickBooks Desktop

Welcome to the QuickBooks family! ChiColorLabel.

I'd be glad to walk you through the steps on how to delete transactions from the undeposited Funds account. Here's how:

1. Go to your Chart of Accounts and look for the Undepoisted Funds account. 
2. Right-click on it and select Quick Report: Undeposited Funds.
3. Double-click on each transaction that you want to delete to open them. 
4. Select the Delete button and choose Yes to confirm that you want to delete it. 

You can also change the account from Undeposited Funds to a different one in case you don't want to delete the transaction completely. Just click the drop-down list for Deposit To and select the account that you want. 

However, I would recommend reaching out to your account before making any changes because this might affect your financial reports.

Let me also share these articles about the Undeposited Funds account for additional guidance and information:

• What’s The Undeposited Funds Account?
• Deposit Payments Into the Undeposited Funds Account in QuickBooks Desktop

Don't hesitate to reply to me and let me know if you're able to remove the transactions from the Undeposited Funds account. The Community is just around the corner if you need anything else. 

Thanks! This is great feedback.

However, the "Deposit To" option is not available in the "Customer Payment" windows for the undeposited funds I need to clear up (see attached).

Thanks for getting back to us, ChiColorLabel. 

Let's find out why the Deposit to option isn't showing up on your customer payment in QuickBooks Desktop. 

Using the screenshot you've provided, I can see that the payments were initially deposited in the Undeposited Funds. You can check your QuickBooks Preference to see where customer payments will be deposited.

Here's how: 

1. Go to the Edit menu.
2. Choose Preferences.
3. Select the Payments menu.
4. From the Company Preferences tab, make sure to uncheck the Use Undeposited Funds as a default deposit to the account tick box.
5. Click Ok.

I've attached a screenshot for your reference. 

By doing the steps above,  you'd be able to deposit your customer's future payments directly to the correct checking account. 

I've added this article to learn more about combining payment in QuickBooks: Record And Make Bank Deposits In QuickBooks Desktop.

In case you'll want to add bank transactions after you've received the payment, you can visit this link: Add And Match Bank Feed Transactions In QuickBooks Desktop.

You can always tag me on this thread if you need assistance tracking and managing your sales transactions. It's always our priority to keep your record accurate.

@ChiColorLabel  RE: How do we delete these entries so they no longer appear in the undeposited funds screen?

You can either deposit them or delete/void them.

You mention that they are already deposited.

- If you mean you literally deposited the payment transaction in QB and now it's appearing again, that can be caused by data damage. Rebuilding the data file will fix it in some way, perhaps putting it back in the deposit, or by removing it altogether, so you can include it again.

- If you mean the deposit exists, but you didn't initially include the Payment in it, then edit the deposit and include the payment and then delete the row that represented it before. And if Rebuild doesn't fix it, you may need to do the same, removing and then adding the payment back to the deposit.

Your screenshot also appears to show a payment with no customer name. If that is how it actually looks as a saved payment, that's a sign of data damage as all payments must include a customer name.  In this case, are you allowed to add the customer name to the payment? I'd think so...

Thanks @BigRedConsulting 

We converted from Sage 50 to QB on 1/1/22. These were payments and deposits that were made in previous years in Sage 50. Something happened during the conversion that made these few transactions appear/stuck in the undeposited funds even though the aforementioned payments/deposits have already taken place in 2021. 

I want to get those cleared from that screen but don't want to throw my reconciliations off - which is one of my biggest fears since reconciliation errors in Sage 50 were much easier to fix than in QB from what I can see. We're going through a COO cleanup so I'm not quite as concerned with how this affects my balance sheet.

Any thoughts with that in mind?

All of my undeposited funds are already in a deposit and cleared through the bank and reconciled already. I've got $86,500 worth of these undeposited funds for some reason and they've all cleared the bank. If they hadn't, I would see them when I go to make deposits and I don't. I'm sure they weren't entered properly or something but I'm just not sure why they're still there or what to do. I understand the concept of Undeposited Funds...they sit there until the deposit is made so why are they still there. There are literal hundreds of these for 2023. Any help would be greatly appreciated. 

Hello there, @Pbrooks310. Allow me to provide some insight about the amount in your undeposited funds.

Since you've mentioned that the funds have already been deposited, cleared through the bank, and reconciled. They should not be appearing in your undeposited funds. A possible reason why it's still showing is due to data damage. Please note to back up your company file before doing any troubleshooting to have a save point.

To fix this, let's proceed in repairing your company file:

1. Go to File, click Utilities, and select Rebuild Data.
2. Select OK, then follow the onscreen steps to save a backup.
3. Let the tool repair your file. QuickBooks (QB) may seem stuck, but the tool is working as long as you can move your mouse. Please note that this may take some time.
4. When it finishes, select OK.
5. Go to the File menu. Then, hover over Utilities and select Verify Data.
6. Let the tool check your file for data issues.

If QB finds an issue with your company file, select Rebuild Now. If QB doesn't see any problems, select OK. 

In addition, if you face the same problem again, you can refer to this article: Fix data damage on your QuickBooks Desktop company file. Then, proceed to Solution 2.

Also, if you want to add bank transactions after receiving the payment, you can visit this article: Add And Match Bank Feed Transactions In QuickBooks Desktop.

Please let me know if you need further assistance with your Undeposited Funds. I'm always here to help you out. Have a great day!