Banking
I know a way to clear out the negative balance in the Undeposited Funds account, advance2201.
QuickBooks Desktop automatically holds the funds in the Undeposited Funds account when receiving payments. To clear the amount in this account, we'll have to make deposits.
Since you created a journal entry (JE), you’ll need to delete them. Then, deposit the payment to your desired bank.
Before proceeding, I'd recommend backing up your company file before making any changes since the process can’t be reversed.
To delete the journal entries:
- Go to the Lists menu.
- Select Chart of Accounts.
- Double-click Undeposited Funds.
- Double-click the JE to open it, one at a time.
- Press Ctrl + D on the keyboard to delete.
Once done, let’s deposit the payments.
- Go to the Banking menu and then select Make Deposits.
- Choose the payment in the Payments to Deposit window.
- Select the bank where you want to deposit the funds.
- Click Save and Close.
In case you want to move the amount to the Misc. Income account, you can create a JE. I'd suggest consulting your accountant to know which accounts to debit and credit.
You can also learn more about how the Undeposited Funds account works in QuickBooks. This helps you ensure all the payments are tracked accurately.
Please do comment down below if you have any other concerns or questions about managing your deposits. I'm always glad to assist in any way I can.
