Undeposited funds balance due to a payment that was not recorded

jhachenski · ‎December 11, 2020

Hello!

On the balance sheet report, undeposited funds is showing an amount that is due to a deposit made in 2018 where a payment was not recorded to clear the undeposited funds. The associated customer record is also showing an overdue amount equal to the deposit since the payment was not recorded. Is there a way to clear this amount without creating a payment record? If I create a payment record, it shows up in bank deposits and if I capture this old payment as a deposit it will throw off my bank account balance.

Is there another way to clear the undeposited funds and the customer balance without recording this as a payment?

Thank you!

MaryLurleenM · ‎December 11, 2020

You'll need to create a journal entry, jhachenski.

Since you want to clear an old customer balance and the undeposited fund from a prior year. A journal entry can clear these two.

I suggest checking with your accountant on how you can go about this. They will be able to help you with what accounts to use to record these properly.

You can check this article for the steps how: Create a journal entry in QuickBooks Online.

Feel free to contact us again whenever you need help with your QBO account.

View solution in original post

btks · ‎December 11, 2020

How was the payment added to the bank balance in 2018 if it did not go through the undeposited funds account? Can you remove that transaction and then run it through the correct way?

jhachenski · ‎December 11, 2020

Thank you for the response. The amount was manually deposited to the bank and the bank account was reconciled outside of QuickBooks in 2018. The bank account has been reconciled in QuickBooks for 2020. I am just trying to clean up an old customer balance and undeposited funds balance from a prior year.

MaryLurleenM · ‎December 11, 2020

You'll need to create a journal entry, jhachenski.

Since you want to clear an old customer balance and the undeposited fund from a prior year. A journal entry can clear these two.

I suggest checking with your accountant on how you can go about this. They will be able to help you with what accounts to use to record these properly.

You can check this article for the steps how: Create a journal entry in QuickBooks Online.

Feel free to contact us again whenever you need help with your QBO account.

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Undeposited funds balance due to a payment that was not recorded