I am doing an audit of customer payments. I have a payment that was clearly misallocated. I see it is going into Undeposited funds, but how do I find out which deposit it was put into? The dates on the payment are incorrect (it predates the invoice date) and so it was clearly entered incorrectly, and I cannot match it to a deposit in the immediate months before and after the invoice date. Is there a way to track the payment to the actual bank deposit?
Thank you for posting here in the Community. To make sure we're on the same page, Did you create a separate deposit from PayPal to your other bank account? To ensure the balance will be settle from the undeposited fund's account, let's create a bank deposit added the sales were included on your deposit. This will reduce the balance from the account.
Thanks for replying, but I know how to use the undeposited funds. What has happened is a previous user made a manual bank deposit transaction from undeposited funds to a bank account (as they should have). Whatever date they used for that deposit does not match the payment transaction that went into undeposited funds, and I need to find the deposit transaction.
So invoice was dated May 2017, a payment was received (this I can see from the sales records, and see that the payment was made to my Accounts Receivable and to Undeposited Funds). Sadly, the date entered for payment was 2011 not 2017. It is not in Undeposited funds, so must have been put into a bank deposit. As I am reconciling from newest to oldest, I know the deposit was not made at a later date, so it must have been earlier. I need to find the deposit to determine which bank and which date it should be to correct it and to verify its accuracy from the stub. I figure if I know the exact full bank deposit amount, I can at least look for it on a bank statement.
So in a nutshell, once a transaction is made from undeposited funds into a bank deposit, how do you find the deposit in QuickBooks?
I have seen multiple instances of date errors that QuickBooks shouldn't allow (i.e. payments predating invoices by years) without at least a warning (my opinion)