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fgibson
Level 1

Undeposited Funds Account

I have a client that upgraded from the desktop version to the online version. The client has 500 transactions from 2011-2015 in the undeposited fund's account. What is the best method to clear up this account for the online version?

5 Comments 5
MaryGraceS
Moderator

Undeposited Funds Account

Hello there, fgibson.

 

Thank you for reaching out to the QuickBooks Community.  I'd be happy to help share some methods to clear the Undeposited Funds after upgrading to QuickBooks Online.

 

A likely cause of this is if you used journal entries in QuickBooks Desktop to apply payments to your customer's invoices. The links between the journal entry "credits" and the invoices are broken once in QuickBooks Online.

 

To fix this, you can apply these credits to the correct invoices. In QuickBooks Online, you have an option to apply credits to invoices automatically.

 

Here's how:

  1. At the top right, click the Gear icon.
  2. Select Account and Settings.
  3. On the left pane, select Advanced.
  4. Click anywhere in the Automation section.
  5. In the Automation section, mark the Automatically apply credits box.
  6. Click Save.
  7. Click Done.

After that, you can move the funds into the right bank account to change them to deposited.

 

Here's how:

  1. Click the Plus (+) icon.
  2. Select Bank Deposit.
  3. Choose the correct bank account.
  4. Enter the correct deposit date.
  5. In the Select the payments included in this deposit section, select all the appropriate payments.
  6. Click Save and close. Repeat this process until all the Undeposited Funds will be deposited to the right bank account.

If you don't want to apply for all payments automatically, you can record the payments by matching the journal entry credits to existing invoices. You'll need to do this on a customer by customer basis.

 

For additional help, you can also call our Phone Support to guide you through the steps to do it. 

 

Drop me a comment below if you have any other questions about clearing the Undeposited Funds in QuickBooks Online. I'll be happy to help you out.

HonestPastures
Level 1

Undeposited Funds Account

We are having an issue with journal entries created to cover promotional items given away showing as undeposited funds in the Deposits screen. We don't want to deposit them, obviously, as the entry was created to show a loss. How should we proceed with the undeposited funds?

AldrinS
QuickBooks Team

Undeposited Funds Account

Hi there, HonestPastures.

 

It's a pleasure to have you join us here in the Community. I'm by no means an accounting professional, but I do have some insight and resources to provide that can help get you on the right track.

 

In the situation you've explained, I would recommend that you review the journal entries that you've made. You need to make sure that the right accounts would be affected instead of the Undeposited Funds account. For additional insight about this, I would recommend following this article: How to create a journal entry

 

Please be sure to reach out to an accounting consultant to ensure this method is the best suit for your business. With Intuit's Find-A-ProAdvisor site, you can search for certified professionals in proximity to your ZIP code that can discuss options more personal to your business's needs.

 

Please be sure to let me know if there's anything else I can do to help you succeed with QuickBooks. Thanks for reaching out, wishing you and your business all the best!

dawnroth
Level 1

Undeposited Funds Account

I can't seem to clear the transactions in my Undeposited Funds account.  I need help with this.  In my P & L, the income is overstated by the amounts in the Undeposited funds account.

ChristieAnn
QuickBooks Team

Undeposited Funds Account

Hi there, dawnroth.

 

I'm glad to see you posting here and welcome to QuickBooks Community. I'll provide information and fix the income that overstated by the amounts in the Undeposited funds account in P & L.

 

Once you downloaded the transaction in QuickBooks Online, you'll need to review by matching or adding them in QuickBooks. That said, I suggest making sure that the money received from invoices and sales receipt isn't manually added from Online Banking. If that happens, then it creates duplicate entries on your end and can cause your income exceeded. I suggest going to the Categorized section and undo those added. This way, transactions will go back to the For Review tab.

 

Here's how:

 

  1. Click the Banking menu. Then, choose the Categorized tab.
  2. locate and review that are added.
  3. Click the Undo link under the Action column.

 

Once done, if you have an invoice payment/sales receipt manually recorded in QuickBooks and stored to the Undeposited account, you'll need first to deposit those transactions in your bank. Then, match them from the downloaded entries to avoid double transactions or income. That way, you're able to clear the transactions in your Undeposited Funds account. And, your Profit and loss report now stays accurate.

 

Please refer to this article to see steps on how to create a Journal entry and offset the value of a negative deposit in Undeposited Funds: How to clear negative entries from Undeposited Funds and the Bank Deposit screen.

 

Feel free to add a post/comment below if you have any other banking or deposit concerns, I'll be always here to help you. Have a great day ahead!

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