Clean up an undeposited fund where no payment was recieved

Hi there, @DiscDay.

Let me guide you through cleaning up undeposited funds in QuickBooks Desktop (QBDT).

To properly clear the undeposited fund, you have to edit the Deposit to.

Here's how:

1. Go to Accountant, and select Chart of Accounts.
2. Find the Undeposited Funds, and click it.
3. Locate the specific deposit then double-click it.
4. Change the account from the Deposit to drop-down list to any bank account.
5. Click Save and close.

For future reference, to know why some payments go to the Undeposited Funds account, you can check this article: Deposit payments into the Undeposited Funds account in QuickBooks Desktop.

If you have further concerns about how to clean out the Undeposited funds, please don't hesitate to ask. I'll be happy to assist you.

You might not have read my question fully.

I have an undeposited fund listed in QB which came from the POS.

The actual payment was never received and most likely will never be so there will not be anything to match it to. 

I need to figure out what to add in quickbooks so that I can match it and move it out of undeposited funds.  Maybe some kind of bad transaction account?

Hey there, @DiscDay.

As my colleague suggested, you can move the deposits to the correct bank or credit card account to clean up the Undeposited Funds account. Since this is a non-payment and doesn't apply to open invoices, you can delete it. Before performing this step, ensure that the file is backed up.

In addition, if you have uncollectible invoices, you can write them off as bad debt in QuickBooks Desktop. For more information on how to do this, please refer to this article: Write off bad debt in QuickBooks Desktop.

Let me know if you have any other concerns besides cleaning up an undeposited fund. I'm always available to help.

@DiscDay 

You will need to reverse both the payment to Undeposited Funds as well as the corresponding entry to your income account since the sale never happened.  You can do that with a journal entry: debit your sales income account and credit Undeposited Funds.  Then, when you go to make the deposit, the payment that you never received will be offset by the journal entry and you should be good to go.