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Community Contributor *

How to clear up undeposited funds account?

I have an undeposited funds account that is YEARS old. All of the dollars, etc have been deposited in the appropriate bank accounts, and everything is reconciled. What is the simplest way to remove all of these entries. 

Followup question, what is then the easiest way to have sales receipts (lets say from Amazon) go into account when client is paid every two weeks via a deposit from Amazon. 

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Best answer 10-15-2018

Accepted Solutions
Super Contributor *

Fixing it depends on how these deposits (that duplicate t...

Fixing it depends on how these deposits (that duplicate the ones hanging) were deposited.  Were the original deposits just entered directly to sales/income acct. instead of using +bank deposit.  You can open the original deposits that these transactions were supposed to go to and add the payments and trash can the manual line item to the sales/income acct.

Or just make one giant deposit and drop down a line and enter your income acct. with a minus amount of the total deposit to clear them.  Your net deposit would be zero.

Either of these two methods works to remove them, but you really should do this under the guidance of your accounting professional since these are very old transactions and you may be working in a closed period of your books.

10 Comments
Super Contributor *

Fixing it depends on how these deposits (that duplicate t...

Fixing it depends on how these deposits (that duplicate the ones hanging) were deposited.  Were the original deposits just entered directly to sales/income acct. instead of using +bank deposit.  You can open the original deposits that these transactions were supposed to go to and add the payments and trash can the manual line item to the sales/income acct.

Or just make one giant deposit and drop down a line and enter your income acct. with a minus amount of the total deposit to clear them.  Your net deposit would be zero.

Either of these two methods works to remove them, but you really should do this under the guidance of your accounting professional since these are very old transactions and you may be working in a closed period of your books.

Community Contributor *

Thank you Lynda. I think this technique will work nicely....

Thank you Lynda. I think this technique will work nicely. The original deposits were brought in by the bank interface. So by doing an end-of-the-year clearance that should make everything now balance. I have also changed the way PayPal, shop at Ron, Square are deposited into the accounts no longer undeposited funds. Thanks again
Frequent Contributor *

Re: Thank you Lynda. I think this technique will work nicely....

Hello!

 

Is there another step to the solution provided, 

"Or just make one giant deposit and drop down a line and enter your income acct. with a minus amount of the total deposit to clear them.  Your net deposit would be zero."   

 

When I do this, I create a bank deposit to deposit all of the undeposited funds payments to my 1000 Checking Account, and below I am entering an equal but negative amount with the same 1000 Checking Account, so the deposit total is $0. However, when I check my chart of accounts, the 1000 Checking Account QuickBooks balance has increased by the amount of undeposited funds.

 

Thank you,

QuickBooks Team

Re: Thank you Lynda. I think this technique will work nicely....

Hi there, @ashahrest.

 

I'd be glad to help share additional information about clearing up your undeposited funds account.

 

The best option here is the suggested steps provided by our Super Explorer Lynda, to create a giant deposit and drop-down a line with a negative amount of the total deposit to clear the funds.

 

For the funds not to increase to your checking account, please ensure to fill in the correct information on the Deposit page. First, please check your register and see what is the category of the deposits, either sales or income account. Once done, use that account when creating the deposit under the Account column on the Add funds to this deposit section. However, it would be best to consult your accountant for the category or account to use.

 

You can see attached screenshot for additional reference.

j5 deposit....PNG

 

To learn more about deposits, you may check this article: How to Record Bank Deposits in QuickBooks Online.

 

On the other hand, if you need further assistance, you can always get in touch with our Support Team.

 

Feel free to add a post/comment below if you have any other banking or deposit concerns, I'll be always here to help you. Have a great day ahead!

Not applicable

Re: Thank you Lynda. I think this technique will work nicely....

Thank you!  My situation is similar.  The backlog of undeposited funds is approximately 2 years.    The screenshot was extremely helpful, as was the solution provided.

Community Contributor *

Re: Thank you Lynda. I think this technique will work nicely....

Hello 

I  have similar situation too.

How should I know which Acc to use- Sales or Incom? Cost of good sold?

 

it happened that we had to switch from ESC acc system to Quickbooks online and FieldEdge. In time of transition, double invoices were raised. I received a payment on old ones. 

New ones are posted from FieldEdge to QB Undeposited fund. And now I want to clear them. 

I have tried to select them and in Add Funds to make same amount but with -, negative and close. That make 0. 

Is that correct? I used Cost of good sold as Acc.

QuickBooks Team

Re: Thank you Lynda. I think this technique will work nicely....

Thank you for joining the thread, @annaDN.

 

I'm here to help share information so you'll be able to track/handle your transactions correctly.

 

When receiving payments for your sales and deposited them to the undeposited funds, it means that you generate an income and the money received sits on the undeposited funds. Also, you added a bank deposit to your bank account as an income. This means that you've recorded an income twice. To verify this further, you may need to run reports (Profit and Loss) and make the necessary customization.

 

To clear them out, you may need to use the account that was used where you deposited the bank deposit with a negative amount.

 

That should do the trick. In case you have any other QuickBooks concerns in the future, you may check our self-help articles: Help articles for QuickBooks Online.

 

Stay posted if you have any other payments or deposits questions, I'll be always here to help you. Have a great day ahead!

Community Contributor *

Re: Thank you Lynda. I think this technique will work nicely....

I am totally confused now.

If I go back to Undeposited fund recently done and delete that negative amount I added before, it will back to Undeposited fund ?

Or I should go and change the account cost of goods sold to AR?

please....

Community Contributor *

Re: Thank you Lynda. I think this technique will work nicely....

When I look for these double payments, I see them AR. Should I use AR then? 

I did them separately, one by one.

Community Contributor *

Re: Thank you Lynda. I think this technique will work nicely....

Sorry for bothering you, but I have deleted those deposites and back payments to Undeposited fund. For now will stay there...

if you know the other way to clear them out, be free to suggest.

 

thank you a lot 

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