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sf22
February 12, 2019
Solved

Undeposited Funds account

  • February 12, 2019
  • 5 replies
  • 89 views

Hi 

I am reconciling exp. bank account and want to see induvial customer payments (Manually reconcile) rather then lump sum? In the undeposited funds account are multiple deposits but not clearing out. Here is how the money was received. 1. Payments to undeposited funds. 2. Make deposit slip and take to bank. 3. Go to deposit window make deposit to exp. account. What is being done wrong. Read that making a deposit will clear account but money is still in Undeposited funds account. Should this account have nothing in it except any checks not taking to bank yet? Why are funds still in account and what steps to clear them? Also have a prior, other years, balance and or checks in this account and want to clear but do not want to change any financials, how do I clear account? I appreciate your help?

    Best answer by HoneyLynn_G

    Hello again, @sf22.

     

    Thank you for getting back to me. I'm here to clear this up for you.

     

    The purpose of creating a Bank Deposit is only to offset or to make the Undeposited Funds Account's balance as zero. Any transaction created under this account will still show. 

     

    That's it. Let me know if there's anything else I can do for you. Just leave a comment for me or mention my name. Have a blissful day!

    5 replies

    HoneyLynn_G
    HoneyLynn_G
    Level 6
    February 12, 2019

    Hello there, sf22.

     

    Thank you for posting here in the Community and providing extra details. I can share some insights about clearing the Undeposited Funds account in QBO.

     

    When making a deposit slip, you have to select the payments created. You can choose one or more payments and group them into a single deposit. This should match the transaction amounts on both your bank statement and in QuickBooks.

     

    For your guide, you can use the How to Use the Undeposited Funds Account to Receive Payments article. Go to the Grouped Payments section.

     

    Once done, you can start reconciling your account with ease, sf22.

     

    Keep me posted if you're able to clear your account. I'm still here to help you further if you have follow up questions. Wishing you and your business continued success!

    T
    Tom Jurasinski
    January 25, 2021

    I want to zero out my undeposited account. In my Chart of accounts in the undeposited funds account it shows a balance of $3847.23. But my deposit account is empty.

    C
    Charies_M
    Level 9
    January 25, 2021

    Good to see your post today, Tom Jurasinski.

     

    There may be some adjustments made causing a balance in your undeposited account and leaving your deposit account empty. To sort this out, you'll want to review the transactions under the Undeposited account and to see the details of the amount.

     

    To do that:

     

    1. Go to Accounting and choose Chart of Accounts.
    2. Select the Undeposited Funds account and click View register.
    3. Review the transactions from there.

    If you're not sure how to handle the transactions that are causing the balance, you can consult your accountant for more expert tips regarding the matter. You can also find an on here: Find an accountant.

     

    You might want to visit this article for more information about Undeposited Funds in QBO: What’s the Undeposited Funds account?

     

    All you need to know about managing Chart of Accounts in QuickBooks can be found in this article: Learn about the chart of accounts in QuickBooks

     

    If there's anything I can help you with, feel free to drop me a reply below. Hope you have a good one.

    K
    Kenyan6
    March 29, 2019

    I have been fighting the "Undeposited Funds" issue for years. I receive a payment, I create a deposit. In the "Deposit To" field, I select the name of my bank account. The deposit appears in my register, I reconcile my statement, and still the amount is marked as "Undeposited Funds", and stays that way forever. Accounts Receivable is perpetually incorrect.  It seems that the problem is the "Deposit To" account, so how do I fix this?

      JenoP
      JenoPQuickBooks Team
      QuickBooks Team
      March 29, 2019

      Hi there, Kenyan6.

       

      If the payments are already showing in your register, it means they're already deposited. I would suggest contacting our phone support. They can take a look at this a little further and investigate why the transactions are still showing as undeposited funds. 

       

      Here's how to reach out to them:

       

      1. Click Help in the upper-right hand corner of QuickBooks.
      2. Select Contact Us.
      3. Enter a short description of your concern and click Continue.
      4. Select the option to contact us.

      Visit us again in the Community if you have other questions.

       

        D
        doorstoreellen
        March 13, 2021

        I too have this same problem with undeposited items staying in the bank deposit screen. How do I clear them out? I have called the phone center multiple times but they are ignorant even with what would seem a simple question or procedure. I have been more successful in answers from the community rather than the phone center. Any solution to being able to talk to smarter people in the phone center. Im continually disappointed in them.   Ellen

        R
        REW1
        March 5, 2020

        My issue is I just picked up a new client which hadn't reconciled their books ever. So, I had to artificially enter a starting balance other than zero and reconcile from a date they selected to save them money. The issue is with the undeposited funds account, because there are literally hundreds of unmatched payments which have not been moved to the bank deposit function. Since I am only looking for a few more months of payments to match to the bank deposits, is there a way I can search for a time period and create a list in QuickBooks for the undeposited funds? It will take too long to read through 500  undeposited fund accounts for every month I have to reconcile. Need a short cut.

        IamjuViel
        IamjuViel
        Level 8
        March 5, 2020

        Hello, @REW1.

         

        You can generate a report for the payments you've receive that weren't deposited  yet into your bank account.

         

        Here's how:

        1. Go to the Accounting menu.
        2. Choose the Chart of Accounts tab.
        3. Look for the Undeposited Funds account.
        4. From the Actions column, click the View Register drop-down. 
        5. Select Run Report. 

        You have the option to customize this report to show only the list of Undeposited Funds for a certain date range and only the uncleared ones.

         

        Let us know if you have other questions. I'm always here to help.

        T
        Teresa59
        September 3, 2021

        How do you clear out negative balances in the undeposited funds on desktop QuickBooks that so it does not affect your banking register

        C
        CharleneMaeFQuickBooks Team
        QuickBooks Team
        September 3, 2021

        I'll gladly show you the way to clear the negative balance in the Undeposited Funds account, Teresa59.

         

        QuickBooks Desktop automatically holds the payment in the Undeposited Funds account. To clear the negative amount, let's create a journal entry. Then, we'll have to make deposits to zero out the balance.

         

        Here's how to create a journal entry:

         

        1. Go to the Company menu and select Make General Journal Entries.
        2. Fill out the fields to create your journal entry. Make sure your debits equal your credits when you’re done.
        3. Select Save or Save & Close.

        For more details, please this article: Create a Journal Entry in QuickBooks Desktop.

         

        Once done, we can now deposit the payment.

        1. Go to the Banking menu and then select Make Deposits.
        2. Select the payment in the Payments to Deposit window.
        3. Choose the bank where you want to deposit the funds.
        4. Click Save and Close.

         

        Additionally, I've added these articles that'll help you learn more about how the Undeposited Funds account works in QuickBooks:

         

         

        I'm only a few clicks away if you need assistance with your other QuickBooks tasks, Teresa59. It's always my pleasure to help you out again.

        F
        ffyrealestate
        April 30, 2022

        It’s been almost an entire month and my funds have still not been deposited into my account from an invoice that has been paid! 
        It’s extremely annoying that I can’t speak with a real person to resolve this issue. 

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