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Anonymous
Not applicable

Undeposited funds in Quickbooks desktop

I had a problem with my undeposited funds window which the accountant this year (2018) determined that there was a problem in 2015.  I was told to make a general journal entry from undeposited funds into the misc. income account.  I did that and had it show up in the "Make deposits" window, I was told to $0 out the deposit by entering a negative amount.  I have done this but now I am back to the original balance in my undeposited funds account.  I have tried reversing it, delete, enter again etc., and I can get the Chart of Accounts to zero out by then it won't go away in the deposits window.    

 

The undeposited funds is a negative (-337.11) and the general journal entry won't let me add in a negative to both accounts.

 

Any suggestions?

Solved
Best answer 04-18-2018

Accepted Solutions
QuickBooks Team

Re: Undeposited funds in Quickbooks desktop

Hi there, @Anonymous,


Thank you for the additional details about how the deposits were recorded. I’m here to help clear the negative balance in the Undeposited Funds account.


QuickBooks Desktop automatically holds the funds in the Undeposited Funds account when receiving payments from customers. In order to clear the amount in this account, you’ll need to make deposits.


Since the deposits were recorded as journal entries (JE) crediting the clearing account, you’ll need delete them including the one going to the Misc. Income account. Then, deposit the payment to your desired bank.


I recommend backing up your company file before making any changes since the process can’t be reversed.


To delete the journal entries:


1.    Go to the Lists menu.
2.    Select Chart of Accounts.
3.    Double-click Undeposited Funds.
4.    Double-click the JE to open it, one at a time.
5.    Press Ctrl + D on the keyboard to delete.


Now let’s deposit the payments. Here’s how:


1.    Go to the Banking menu.
2.    Select Make Deposits.
3.    Select the payment in the Payments to Deposit window.
4.    Select the bank where you want to deposit the funds.
5.    Click Save and Close.


If you need to move the amount to the Misc. Income account, you can create a JE. I still suggest consulting your accountant on which accounts to debit and credit.


You can go through Understand how the undeposited funds account works for additional information.


If there’s anything else you need, you can contact me directly.

 

View solution in original post

QuickBooks Team

Re: Undeposited funds in Quickbooks desktop

Hi there, Luann,


Thanks for keeping me posted with what the results are.


Since you’re still unable to remove the JE to clear the balance in the Undeposited Funds account, I recommend getting in contact with our Technical Support Team. With your permission, they can do screen-sharing to locate the deposit that prevents the JE from getting deleted.


They’ll be able to walk you through additional troubleshooting steps to ensure all the affected accounts have correct balances. Here’s how to get in touch with a Technical Support Specialist:


1.    Go to this link: https://help.quickbooks.intuit.com/en_US/contact
2.    Select QuickBooks Desktop.
3.    Select your QuickBooks version.
4.    Select a topic.
5.    Click the Get Phone Number button.


I’m here anytime you have other concerns with QuickBooks.

 

View solution in original post

7 Comments
Anonymous
Not applicable

Re: Undeposited funds in Quickbooks desktop

Also, the previous bookkeeper before me entered all regular deposits as general journals not regular deposits.  I have tried reversing the general journal but then it adds the negative amount to it now being over -$674.22. 

 

The original general journal has:

undeposited funds of a debit 337.11 and a credit of 337.11 going to a "clearing account".  

QuickBooks Team

Re: Undeposited funds in Quickbooks desktop

Hi there, @Anonymous,


Thank you for the additional details about how the deposits were recorded. I’m here to help clear the negative balance in the Undeposited Funds account.


QuickBooks Desktop automatically holds the funds in the Undeposited Funds account when receiving payments from customers. In order to clear the amount in this account, you’ll need to make deposits.


Since the deposits were recorded as journal entries (JE) crediting the clearing account, you’ll need delete them including the one going to the Misc. Income account. Then, deposit the payment to your desired bank.


I recommend backing up your company file before making any changes since the process can’t be reversed.


To delete the journal entries:


1.    Go to the Lists menu.
2.    Select Chart of Accounts.
3.    Double-click Undeposited Funds.
4.    Double-click the JE to open it, one at a time.
5.    Press Ctrl + D on the keyboard to delete.


Now let’s deposit the payments. Here’s how:


1.    Go to the Banking menu.
2.    Select Make Deposits.
3.    Select the payment in the Payments to Deposit window.
4.    Select the bank where you want to deposit the funds.
5.    Click Save and Close.


If you need to move the amount to the Misc. Income account, you can create a JE. I still suggest consulting your accountant on which accounts to debit and credit.


You can go through Understand how the undeposited funds account works for additional information.


If there’s anything else you need, you can contact me directly.

 

View solution in original post

Anonymous
Not applicable

Re: Undeposited funds in Quickbooks desktop

Thank you for responding.  I sent you a message regarding further assitance.  When I tried to delete I was told to delete this from the "deposit".    Can I change the date of this deposit from 2015?

QuickBooks Team

Re: Undeposited funds in Quickbooks desktop

Hi there, @Anonymous,


I’ve received your message about the error you’re getting when trying to delete the journal entry.


Since you were already advised by your accountant to move the amount to Misc Income account, you can change the clearing account to the specified income account. You can change the date from 2015 to 2018.


After that, go back to the Chart of Accounts to ensure everything looks good. Let me know if you need additional assistance. :)

Anonymous
Not applicable

Re: Undeposited funds in Quickbooks desktop

I am sorry but it seems like this transaction will not leave! :(  I am so frustrated I changed the date of the deposit that was done to clear out undeposited funds to 1/1/18.  

 

The former bookkeeper did EVERYTHING in general journals.  I have SEVERAL general journal entries that are processed this way:

 

our banking account: debit $$$$

undeposited funds: credit $$$$

 

this all started in 2014 up until 2016.   The last line in my deposit is "miscellaneous income" and the total is $-337.11 in order for the deposit to be charged as 0.  My undeposited funds is still $-337.11 but there is not an option to select a deposit in the "make deposits" window.  I also changed the general journal entry to 1/1/18 as well but things are still the same.

 

Thank you,

Luann

QuickBooks Team

Re: Undeposited funds in Quickbooks desktop

Hi there, Luann,


Thanks for keeping me posted with what the results are.


Since you’re still unable to remove the JE to clear the balance in the Undeposited Funds account, I recommend getting in contact with our Technical Support Team. With your permission, they can do screen-sharing to locate the deposit that prevents the JE from getting deleted.


They’ll be able to walk you through additional troubleshooting steps to ensure all the affected accounts have correct balances. Here’s how to get in touch with a Technical Support Specialist:


1.    Go to this link: https://help.quickbooks.intuit.com/en_US/contact
2.    Select QuickBooks Desktop.
3.    Select your QuickBooks version.
4.    Select a topic.
5.    Click the Get Phone Number button.


I’m here anytime you have other concerns with QuickBooks.

 

View solution in original post

Anonymous
Not applicable

Re: Undeposited funds in Quickbooks desktop

Thank you that was very helpful!!! :)

 

 

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