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Undeposited Funds account showing a balance

Hello All! I have been battling with the almighty dreaded "Undeposited Funds" account.  I have chatted with QBO online and after 3 hours, no avail. Here is my dilemma. 

1) When I run a balance sheet for a period (prior year), I show a massive amount in UF 

2) Yes, when I run the report for all dates, it zeros out 

3)  But when I present the financials for 2016 (end date 12/31/16), the Balance Sheet grossly overstates assets 

4) No I did not duplicate checks/payments/deposits 

5) All entries have been reconciled 

6) I even verified that dates enter on checks/payments/deposits did not pre-date deposit dates (I learned that keeps entries in UF)

7) Did I say I HATE UF? 

8) Also, I read to NOT use a JE to 0 account because in the long run it screws everything up

9) Would LOVE your advice

10) HAPPY Tax day!!!! LOL 

Solved
Best answer 09-09-2019

Accepted Solutions
Super Contributor *

At year end for 2016, look at the balance and find the de...

At year end for 2016, look at the balance and find the deposit(s) dated in 2017 that show them depositing into the bank.  It sounds like you may have entered customer payments in 2016 but did not group for deposit till 2017.  

Especially if it all zero's out.  That is how u/d funds is supposed to work. don't hate it.  It is just a holding acct so you can group the customer payments.

View solution in original post

2 Comments
Super Contributor *

At year end for 2016, look at the balance and find the de...

At year end for 2016, look at the balance and find the deposit(s) dated in 2017 that show them depositing into the bank.  It sounds like you may have entered customer payments in 2016 but did not group for deposit till 2017.  

Especially if it all zero's out.  That is how u/d funds is supposed to work. don't hate it.  It is just a holding acct so you can group the customer payments.

View solution in original post

Established Community Backer ***

Items 1-6 seem like someone else didn't make the deposit...

Items 1-6 seem like someone else didn't make the deposit Timely to the year end, and 8 is true, because this is Already your own funds in transit and should never be Adjusted; it should be Managed. You don't even have to use it; you use it because it is a Helper tool applicable to how your data flows in reality. For item 8: You use the Deposit and Select that you are finally depositing the funds "in transit" through UF, because you didn't want them to post Individually to the bank account from Sales Receipts or Receive Payments. If I get 50 checks in the mail, and 32 ACH transactions on a single date for settlement, I don't want 82 separate entries in the bank register. That is All UF is doing for you = organizing the Deposits as a Batched function with a Specific date that it actually posted to the Bank as a deposit date. Everything before this is just How the money ended up at UF, waiting to be selected as part of a deposit.

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