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Somewhat similiar question. My S corp company, if that matters, does contract work for a company. I work a month and get paid the following month. When I started QB in 2017 I had help that year and turned in my accountant portable copy. Worked great, then 2018 came. I still had help through May. The last tech helped me, I thought I knew what to do but messed up. I did get all of 2018 bankstatements reconciled. Where I messed up is recording the deposits the way the tech showed me, I thought. I created an invoice for each deposit and received the money. This created undeposited funds. I was told to delete these invoices which would clear the undeposited funds. In addition, the tech said I could receive the deposited income without using undeposited funds. Now I have a mess. I have run a number of reports and see my problems, I think, but don't know where to go from here.
A couple other issues I found. 1) I credited the deposit to the wrong job 2) customer has a negative balance for an amount equal to 2 deposits.
Hello there, @JBruc.
Thank you for joining this thread and providing details about recording your deposits. Allow me to loop in and help share some information about Accounts Receivable workflows in QuickBooks.
You're already on the right track when creating your invoice and receiving the payment. The Undeposited funds is a default account in QuickBooks that holds funds from payment to your company until you deposit them to your bank account. You can group them all into a single deposit if you received a lot of payments within a day.
There is no need to delete the invoices, instead, what you need to do is make a deposit to move the undeposited funds to your bank account.
Let me route you to these helpful articles below for your reference on the Accounts Receivable workflow.
Since you mentioned you credited a deposit to the wrong job, you'll need to edit that to resolve the negative balance showing on your customer's balance.
This should get you on the right track. If you need assistance with the steps, please feel free to contact our Desktop Mac support for further assistance. They can help you further using their navigation tool.
Here's how you can reach them.
Keep me posted if you have additional questions about the workflow. I'm always here to provide further help.
Let's break this out into parts:
"Where I messed up is recording the deposits the way the tech showed me, I thought. I created an invoice for each deposit"
Invoice = Unpaid sale for the date of the invoice, to track that you anticipate Payment to come later and/or in partial amounts. That provides two steps, to separate the Dates of the sale and the Dates of the Payments, and for tracking Unpaid and Late payers. This especially applies to an Accrual Basis entity and someone selling Inventory, since that date of the sale, it is Gone from being on hand and in stock.
Sale Receipt = One Step. This sale date also is a Paid Sale.
"and received the money. This created undeposited funds."
You get to set the file to Flow each payment directly to Banking, or Group with UF, to be able to show it is part of a Batched Deposit for a date. I send 50 individual Checks as Receive Payment to UF. I use Banking menu > Make Deposit and select 16-18 at a time, to make up the Fat Envelope I take to the teller for deposit. My Bank statement will show 3 Big Deposit entries, and now, so will QB. I don't want to see 50 individual deposit entries in the QB Bank, while trying to match that to three Deposit Batched amounts that come from the Bank statement.
"I was told to delete these invoices which would clear the undeposited funds."
No. It Removes Sales. It leaves the Payments with no reason for you to have been paid.
"In addition, the tech said I could receive the deposited income without using undeposited funds."
Yes, but you need to use one of the Sales Functions:
Invoice and Receive Payment
What you then do is Control how the Money Flows to Banking.
What you need to do for UF is Make That deposit and select what actually went into the bank each Date. That Clears UF. You simply haven't finished your work.
Don't Remove Sales; that is going backwards in the steps. Move Forward, and show what finally did end up at Bank and for which date.
"A couple other issues I found. 1) I credited the deposit to the wrong job"
You don't enter Names in the Deposit screen. You use Sales receipt or invoice. The Payment or Sales Receipt is going to pass Name to the Deposit function. If you Made invoices, Received Payments, Deleted the invoices, and then use the Deposit screen manually to enter income, you are doing three things, the invoice already was income, and now you have made negative AR and orphaned the UF entries.
Never work in the Deposit screen manually. Use the functions.
"2) customer has a negative balance for an amount equal to 2 deposits."
Right; too many tasks. You likely have better things to do, than run the data in circles. Never talk to that "tech" again.
Change your Preferences, if you don't ever group more than one entry into Banking. Now they will hit individually. Or, leave the preference for UF, and then you can select them individually for deposit, when that applies, and Batched, when that applies. Do what matches your Reality.
If the date of the payment is also what you used for the Receive Payment, then just make sales receipt now. Delete those Received Payments.
Otherwise, for those payments that exist, recreate the Invoices. Open each Payment and relink it to the invoice(s) shown at the bottom. Do this individually and by date, if the customer had different sales over different dates and you need to match Payment to the right invoice.
Let's make sure we don't Affect this, if possible: "I did get all of 2018 bankstatements reconciled."
Make sure for all of this, to select UF for anything you are changing now. You don't want them to hit Banking directly, while we Fix this.
Once you fixed all Sales...
We open one Deposit screen where you put manual entry as Income. Use the Payments Icon at the top and select the Payment or Sales Receipt that is supposed to be flowing here. Then, click on the line(s) you manually entered and Delete them. Use Edit menu > Delete, or Ctl + Delete Key, one by one.
Now you should see the Deposit Total has not changed; the Contents of this worksheet are the Properly Selected data flowing here. This will not Unreconcile, as long as it is the same amount. Save and Close.
Keep doing this until UF is Cleared and all manual Entries of Deposit as Income are replaced with the right data.
If the bank has transactions that unreconcile, and you know the amount and fix is the right thing to do, such as, one entry becomes three or three entries become one, do not Worry. We do a Min-Rec or Interim Reconcile.
Use the Final Statement you already used, recently. Use that Ending balance and Ignore the Beginning balance on the screen and that statement. That Value is the Net of all previously Cleared transactions, which you know you just affected, so Ignore it.
Your Target is always that ending balance. Your goal is to Reclear anything historic that you was previously processed and cleared. You get to that same difference of 0. You are back on track.
Thanks to you both. Not resolved yet but have chosen to use invoices so I can confirm and attach their Tsheets report to the invoice ahead of time and know what is outstanding. Had problems with their books matching mine especially when my Tsheets profile for their company disappeared through October 2018 and can't be retrieved from archives or anywhere else by Tsheets support. I will report after I am finished.
I think I have completed everything needed except the deposits. I have created an invoice for each deposit, received payments and now the funds are in UF, I think. The reason I say , I think, is UF is not listed on Chart of Accounts. An added problem I created, I deleted a deposit from a reconciled bank transactions. You have been the best help in getting me this far, thank you.
The Program creates UF automatically.
You use Banking Menu > Make Deposit. You get a Pop Up = there is the UF window and here is everything waiting for you to select it. Or, in the Deposit screen, the Payments Icon forces that same Pop up, when there is something to show to you.
It doesn't matter that you deleted a reconciled deposit. I explained how to ReReconcile.
Hello there, JBruc.
Thanks for getting back and providing additional details of your concern. Let's get this straightened out.
To correct this, you'll have to change the deposit to Accounts Receivable (A/R). Once done, you can apply it to the invoice as a credit.
Here's how to edit a deposit:
You can refer to this article to learn more Deposit customer payments.
Just in case you want additional help from our live support, feel free to reach them out through this link: QuickBooks Desktop Support.
Let me know if there's anything else I can help you in handling customer deposits. I'm always happy to help.
"1) I recreated my invoices for each deposit I have already deposited into west bank checking."
Because you Already have used Receive Payments, which is AR. Otherwise, Sales Receipt = One Step.
" 2) I received the payments."
I thought you already have these?
"Next step I believe I did incorrectly. 3) I went to banking tab, make deposits."
In the Receive Payment, you either see the dropdown for "Deposit to:" or you see blue hypertext words for, "Where does this payment go? Hypertext without the dropdown = you sent them to UF by Default, via the Preferences setting.
"Now I have the deposits duplicated. See attached"
I pointed out to Open your existing Deposits. Then, there is a button at the top to Force the UF pop up and Select from here, and Remove your previous manual line(s) in that Deposit worksheet, to Remove manual Income and let the Payments and Sales Receipts flow here.
"I know one thing that was wrong, I deposited a batch of 3 deposits at a time. I then saved these.
Another screen came up and I believe I mistakenly recorded the deposits to checking."
You can Delete any deposit that does not apply. Make your bookkeeping match your reality. If you see Duplicates, Remove the entries that are Manual, and not showing the UF or the Sales Receipt or the Received Payment.
There is no attachment from you.
Pay attention to the Transaction Type.
Please see Mine.
Please Learn from this input. Your guidance to Change Deposits to AR is Bad Guidance, for desktop. That is jumping to an end step.
Already used Receive Payment. The AR is Fine.
"so I can confirm and attach their Tsheets report to the invoice ahead of time and know what is outstanding."
But invoices are part of Sales, not how you track Timesheet and tasks. To do that, you import Tsheets into the QB Time Activity function.