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,

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.

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

You can also get a QuickBooks-certified bookkeeper to help with deposits and other tasks:
Check out QuickBooks Live.

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!

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.

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.

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!

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....

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

I did them separately, one by one.

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 

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

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!

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

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.

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!

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.

Hi, 

 I have done what has ben suggested here to clean up my undeposited funds and when I check to see that it was done correctly it still showing in undeposited funds.

Please help.

Thank you.

Hi there, @CT35.

I'd be glad to help you perform a browser troubleshooting steps in QuickBooks Online.

This odd behavior may be caused by the accumulated data in your browser that becomes outdated over time. Let's start by using an incognito window and make a deposit to the appropriate accounts from your Undeposited funds.

Here are the keyboard shortcuts to access a private browser:

• Google Chrome: Ctrl + Shift + N
• Safari: Hold down ⌘ + Option + P
• Microsoft Edge & Mozilla Firefox: Ctrl + Shift + P

If you see that the amount was cleared, you can go back to the regular browser and clear its cache to avoid getting the same issue in the future. However, if the amount in the Undeposited Funds is still there, an alternative way is to use a supported browser.

If it's still the same, I'd suggest contacting QuickBooks Care team. They have the tools to verify your account and to further check to get to the bottom of this.

I've also added this discussion for your future task about reconciliation: How to Reconcile an Account in QuickBooks Online. This also contains sub-topics, such as fixing reconciliation discrepancies or the beginning balance.

You are always welcome to post in the community if you have any other concerns or questions. I'd be happy to back you up. Take care.

I cleared most of the accounts in undeposited funds.  However, I messed up on one and now my bank balance is less what is suppose to be and I don't know how to reverse what I did.  I went to the Audit Log to see what I did but that did not help.  Any advice?

Let's find those transactions that are causing the difference in your bank balance, @rh33663366.

The QuickBooks balance is the total balance of all bank transactions that you’ve added or matched to QuickBooks. While the bank balance is your bank's actual balance from the last bank feed update. If the Bank balance is lesser than your QuickBooks balance, there might be bank transactions that are causing the difference. 

Here’s a list of possible reasons why these balances don’t match:

• New transactions for a connected account.
• Outstanding transactions.
• Duplicate transactions.
• Edited or deleted transactions.
• Unreconciled in the register or reconciled in error.

To isolate the issue, I would recommend checking out the transactions added in QuickBooks and compare them to your bank statement. For additional steps, I also recommend following the instructions under Step 4: Review any discrepancy reports from this article: Fix issues for accounts you've reconciled in the past in QuickBooks Online.

Here's also a guide to help you reconcile your accounts: Learn the reconcile workflow in QuickBooks.

If you have any other QuickBooks or banking questions, please let me know by adding a comment below. I'm always here to help. Have a good one!

Hi!  I'm hoping you can help with my Undeposited Funds issue.  There was an undeposited $50 when I started working with a company.  I recorded a negative entry in Journal Entries and then made the $0 deposit.  Now my Undeposited Funds on my Balance Sheet is always -50.  I've read all of the questions and answers but nothing I do will clear this up because in order to clear Undeposited Funds, I have to use the Record Deposits and it duplicates the problem.  I've removed the original "fixes" and now I'm back to a $50 item showing up in "Record Deposits" that I need to remove.

I'm on Desktop so please help with entries for this and not online.

Thank you!

Hello, @Amertens.

Based on the information you've shared, it appears that there's a bank deposit that was created in the past but wasn't made from Undeposited Funds.

To address the issue of the $50 item appearing in Payments to Deposit and causing duplication, I recommend deleting the duplicate one. If this has already been reconciled, you can perform a special reconciliation to address the issue afterward.

1. Go to the Lists menu and then Chart of Accounts.
2. Select the bank account.
3. Locate the duplicate deposit and select it.
4. Go to the Edit menu and choose Delete Deposit.
   
5. Click OK to confirm.

Then, follow these steps to correctly deposit the $50 from the Undeposited Funds:

1. Go to the Banking menu and select Make Deposits.
2. Choose the appropriate bank account where you want to deposit the funds. 
3. The Payments to Deposit window should show up. Otherwise, click Payments to open it.
   
4. Select the payment with the amount of $50.
   
5. Click OK.
6. Pick the account you want to put the deposit into from the Deposit to dropdown.
7. Enter the date the deposit was made to your bank.
8. Click Save & Close.

Once done, you can refer to this article on how to perform a mini reconciliation: Reconcile previously deleted and re-entered checking or credit card transactions.

Visit me here again in the Community and keep me posted if you need further assistance with your deposits. I'm determined to help you succeed.

So it would seem so, but (`1) it is very old and was in the system when I took over; (2) all of the bank accounts are reconciled.  What are other options?

The recommendation shared by my peer LieraMarie_A would help settle your undeposited funds issue, @Amertens. She updated the reconciliation part to address this entirely. Let me chime in and clarify things out.

After recording a deposit in the QuickBooks Desktop, you’ll want to perform a mini reconciliation to remove and clear this $ 50 item. No worries, doing it won't impact your reconciled accounts and settled transactions. I'm glad to walk you through the process:

1. Select your Banking menu and select Reconcile. 
2. Choose the affected account.
3. In the Date of Statement field, enter date for an "off-cycle reconciliation." This time can be any date between your last reconciliation and the next scheduled one.
4. In the Ending Balance field, type in the balance of your last successful reconciliation.
5. Click Continue.
6. In the Reconcile window, select the deposit you made. Make sure the difference field shows $0.00.
7. Select Reconcile Now once done.

You can read this reference to learn more about managing a special reconciliation: Reconcile previously deleted and re-entered checking or credit card transactions.

Furthermore, generating reports can help verify if everything is accounted for accurately and keep all your entries intact.

If you need more insights on how an undeposited funds account works in QuickBooks, check out this guide: What’s the Undeposited Funds account?

Feel welcome to add comments if you have additional questions or other concerns about operating your finances. The Community team will always back you up and ensure all are covered. Take care always!