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Level 3

Fixing 2 years worth of double income transactions...

Hello - 

 

I am working with a new client and upon reconciling her bank account going back 2 years I found many many unreconcilable transactions - I realized that these were all cash payments that went into the checking account instead of undeposited funds. So they have recorded the income twice - once when she recorded she received the payment to her checking and once when she deposited the funds and didn't match it to anything. Needless to say the checking account balance in QB is off by 10's of thousands of dollars and desperately needs to be fixed.

 

The only way I can think of to fix this is to literally go back and undo all of her banking deposits that are were not matched to anything, re route all of her cash payed invoices to undeposited funds, and then cross my fingers and hope QB can match the deposits in the bank feed to the undeposited funds and re add all of them (this time matched).

 

We are talking about hundreds of deposits and invoices....first of all I am not confident it will work, second of all this sounds like its going to take HOURS...so I am throwing it out there to the community...does this sound like the right thing to do and/or is there a quicker way? 

 

THANKS!

4 Comments
Highlighted
Moderator

Fixing 2 years worth of double income transactions...

Based on the details you've provided, the income has been overstated, lmancini220.

 

You are correct that you'll have to undo each deposits. If this is from the Banking page, you can undo multiple deposits at once: Unmatch or move bank transactions after reviewing them.

 

If these deposits were recorded manually, you'll have to go to each of them and delete manually.

  1. Open the deposit.
  2. Click More at the bottom and select Delete.
  3. Click Yes to confirm the action.

Then, you'll have to go each invoice payments and change the Deposit to field to Undeposited Funds. After correcting the invoice payments, you can already create bank deposits: Record and make bank deposits in QuickBooks Online.

 

Lastly, you can already match the deposits to the ones in the Banking page: Categorize and match online bank transactions in QuickBooks Online.

 

Quicker way to do this would depend on an accountant's suggestion. I'd recommend consulting one to ensure we are doing everything correctly.

 

Let us know if you need anything else. Have a great day!

Highlighted
Level 3

Fixing 2 years worth of double income transactions...

Looks like the default account on "receive payments" is the checking account, I thought this was suppose to default in "undeposited funds" to prevent this from happening? How do I get that corrected? 

Thanks!

Highlighted
Moderator

Fixing 2 years worth of double income transactions...

Hello @lmancini220,

 

Every account used in a transaction such as receive payment is based on the last one you've created. Let's turn on the automation to accomplish this.

  1. Go to the Gear icon.
  2. Under YOUR COMPANY, select Accounts and Settings.
  3. Select Advanced.
  4. On the Automation section, select the Pencil icon.
  5. Toggle Pre-fill forms with previously entered content to turn it on.
  6. Select Save.
  7. Click Done.

In addition, here's an article you can read to learn more about the steps: How to use auto-recall to pre-fill transactions?

 

Lastly, you can also browse for the content of this helpful article in creating a document showing all your customer's transactions: Create and view customer statements.

 

If there's anything else that I can help you with, please let me know in the comments. Stay safe!

Highlighted
Level 3

Fixing 2 years worth of double income transactions...

Thanks! I went for it - I was only able to match about 25% of them. Another way I am thinking about doing this is marking all of the unmatched payments as going into "owners personal pay" and recording a closely similar number of unmatched deposits as "owners investment." SMLLC makes it okay to do that...

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