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Level 2

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. 

Solved
Best answer October 15, 2018

Best Answers
Highlighted
Level 6

How to clear up undeposited funds account?

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.

View solution in original post

16 Comments 16
Highlighted
Level 6

How to clear up undeposited funds account?

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.

View solution in original post

Highlighted
Level 2

How to clear up undeposited funds account?

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
Highlighted
Level 3

How to clear up undeposited funds account?

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,

Highlighted
QuickBooks Team

How to clear up undeposited funds account?

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!

Highlighted
Level 1

How to clear up undeposited funds account?

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.

Highlighted
Level 1

How to clear up undeposited funds account?

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.

Highlighted
QuickBooks Team

How to clear up undeposited funds account?

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!

Highlighted
Level 1

How to clear up undeposited funds account?

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....

Highlighted
Level 1

How to clear up undeposited funds account?

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

I did them separately, one by one.

Highlighted
Level 1

How to clear up undeposited funds account?

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 

Highlighted
Level 1

How to clear up undeposited funds account?

I just reconciled 2019 for our rentals, and had many discrepancies, due to this My first year on QB and my husband's ability to make things difficult.

Q: As I had may MANY dupes, now I have 90 some-odd "payments to deposit"! 

how do I best clear this out without destroying reconciliation? Please use funny instruction LOL  TY

Highlighted
QuickBooks Team

How to clear up undeposited funds account?

Thank you for reaching out to the Community. It's my priority to help you sort this out, @cfwnole. We can manually delete the duplicate transactions by excluded them from your bank. Let me guide you how:

  

  1. Click Banking from the left menu.
  2. Put a check mark on the transactions you like to exclude. 
  3. Under Batch action drop-down arrow and choose Exclude Selected.   

 

 

 

To double check it, you can go to the Excluded tab if you need to see what you've excluded. The transactions aren't tracked or reported as part of your business finances and they won't appear in any associated account registers or reports.  

 

 

 

 

I've got an article for more detailed information about deleting or void transaction: Void or delete transactions in QuickBooks Online

 

 

Also for future reference you can check out this article on how to Assign, categorize and edit your downloaded bank transaction: Assign, categorize, edit, and add your downloaded banking transactions 

 

Please don't hesitate to let me know if you should have any questions about this or anything else QuickBooks related. Have a wonderful day ahead of you!

Highlighted
Level 1

How to clear up undeposited funds account?

Hi Ailene,

Thanks for all your help.

I received a Journal Entry that credit the Undeposited Fund account and debited the bank.

This would normally work but when I try to post the deposit from the deposit window I'm not able to. This is because it is a negative deposit. Since, the tax return has already been filed, what is the best way to correct this in the current year.

 

AnieB

 

 

 

Highlighted
Moderator

How to clear up undeposited funds account?

Hello there, AniB,

 

You're unable to enter a negative amount when creating deposits.

 

I recommend checking with your accountant on how to go about recording this.

 

Check this article for future reference: Record and make Bank Deposits in QuickBooks Online.

 

Let me know if you have other questions.

Highlighted
Level 1

How to clear up undeposited funds account?

Hi There! This all sounds similar to my situation, but I'm not sure I understand and want to be sure I do this correctly. :)

We just switched over from desktop to the online plus, YAY! We are starting out with this year only in the new program. It looks like all of our paid invoices from this year are sitting in the undeposited funds account. Since all these are already paid and have moved through the bank. How do we remove from the undeposited funds account, yet not have any reflection to our bank account numbers. I will also add that we have not connected the bank account yet. But will be doing this week!

Any help is appreciated, thanks!

Highlighted
QuickBooks Team

How to clear up undeposited funds account?

Thanks for joining us here, @MrsAce1.

 

The Undeposited Funds account will hold your customer's payment until you deposit them on your real-life bank account. Though if you made a bank deposit directly to the register and leaving undeposited funds pending, then this may result in a duplicate income.

 

We'll have to delete the deposit and use the pending one on the undeposited funds. Then, recreate it by selecting the pending payment. This will help us avoid any duplicate.

 

Here's how to record a bank deposit:

  1. Click +New icon and then select Bank Deposit.
  2. From the Account drop-down▼menu, choose the account you want to deposit the money into.
  3. Place a checkmark on each payment you want to combine.
  4. Select Save and close.

 

 

For more details about Undeposited Funds account and how to combine multiple payments together, check out this article: What’s the Undeposited Funds account?

 

Also, you may want to consider browsing this article for more information about depositing payments into the Undeposited Funds account in QuickBooks Online: Put payments into the Undeposited Funds account.

 

Additionally, once you connect your bank and credit card accounts, QuickBooks downloads all your transactions. You don’t need to combine downloaded transactions or use Undeposited Funds because there’s already a complete record. You can directly categorize your downloaded transactions.

 

Please keep in touch with me if there's anything else I can do to help you succeed with QuickBooks Online. I've got your back, MrsAce1.

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