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kimmckeen
Level 1

Clean up amount in Undeposited Funds on Balance Sheet but not in Bank Deposits Window

I am cleaning up a client's account and they had a very large amount in undeposited funds from an improper work flow.  I was able to clean up the amount in there that was showing up in the bank deposits window and that greatly reduced the amount left in undeposited funds.  However there still is $18,000 in there on the balance sheet that I can't get rid of.  I have reconciled all bank accounts for the time period so these are duplications that need to be erased.  Doing a JE from undeposited to an income account gets rid of it on the balance sheet but then it pops back up in the bank deposit window.  HELP :). Kim

3 Comments
MarshallA
Intuit

Clean up amount in Undeposited Funds on Balance Sheet but not in Bank Deposits Window

Hello,

 

You can do a JE and thats a quick way to resolve, but here is what I would be asking.  If these are truly duplicates, why not backtrack to the transactions that got deposited into Undeposited Funds and delete them?

 

If you have say 10,000 sitting in undeposited funds and you already have the 10,000 recorded as income in some other deposit or invoice payment, etc.  Then backtrack to the transactions making up that amount sitting in Undeposited Funds and delete them.  Otherwise you also might run the risk of recording double income depending on what the transactions are and how they are coded that are sitting in Undeposited Funds.

apfinnie
Level 1

Clean up amount in Undeposited Funds on Balance Sheet but not in Bank Deposits Window

I am having the same issue.  When I go to the make deposit screen it is cleaned up but when I go to the Balance sheet it is showing an incorrect balance.  If I create a journal entry to fix to the proper balance it wants me to record a deposit for the journal entry but that will in turn throw the balance on the balance sheet off.

LieraMarie_A
QuickBooks Team

Clean up amount in Undeposited Funds on Balance Sheet but not in Bank Deposits Window

You'll need to find the date when this report went out of balance to locate the transaction causing the problem, @apfinnie

 

Let's pull up the Balance Sheet Summary report and run the date range down by starting from year to date. Then, narrow it down each month until you find the specific date. 

 

  1. Go to Reports.
  2. In the Find report by name field, type in "Balance Sheet Summary."
  3. To identify if the report is out of balance on the accrual basis, select Accrual under the Accounting method. Otherwise, select Cash.
  4. Click Run report.
  5. Click on the Customize button.
  6. From the Report period drop-down, select This Year-to-date.
  7. Select the accounting method in which the report is out of balance.
  8. Click Run report.

 

Once done, follow the same steps to narrow down the exact date.

 

  1. Repeat steps 1 through 8 above. This time, from the Report period dropdown, select Month.
  2. After you find the month, follow steps 1 through 8 again. Now, select Week.
  3. And finally, once you find the week, repeat the steps. This time, select Day.

 

From there, you can figure out what transaction is causing the balance sheet to be off and fix the issue.

 

Before you troubleshoot your Balance Sheet report, I'd suggest reaching out to your bookkeeper or accountant for guidance to keep your books accurate.

 

You can check out these articles to learn more about the Balance Sheet report:

 

Please let me know if you have other questions. I'm always around to help. Have a great day.

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