When entering a bank deposit, there is a section "Select payments included in this deposit" and under that a previous journal entry relating to VAT payments. Why?

Thanks for sharing your concern in the QuickBooks Community, @netprosync. Let me provide you with insights on the possible reason why this transaction is showing up.

How transactions show up in the Bank deposit window depends on how they are recorded in QuickBooks. It's possible that someone with access to your account created a journal entry and used the Undeposited Funds account on the other line item. 

To check, I'd suggest clicking the transaction to verify what accounts are being used on the journal entry. 

If you want to know who made this transaction, I'd suggest reviewing your Audit log. This is where QuickBooks tracks your activities to see who made changes to your books and what they did. Here's how:

1. Sign in as an admin in QuickBooks. 
2. Go to Settings ⚙ and select Audit log.
3. Use the fields on the page to choose the appropriate User, Date, or Events filter to narrow the results.

For additional reference about bank deposits, please see these resources:

• What are Bank Deposits in QuickBooks?
• Record and make bank deposits in QuickBooks Online

Please add your details to this thread if you have any other questions in mind. I'll be more than happy to help. Have a good one.

Thanks for your prompt reply.

I went back to the journal entry and no "undeposited funds" account was used.  The transaction was Debit Input Tax and Credit Vat Control.

I also went to chart of accounts and cannot find an account named "undeposited funds".

For some reasons I cannot trace who is responsible for entering that transaction on that day.  The journal entry was 2022-81 and there is no line in the audit log stating the creation of that journal entry.

Thanks for getting back to the thread and for the additional details. I understand you cannot trace the journal entry, as the Undeposited Funds name is not visible in the Chart of Accounts. I'll impart some information to help you get this Journal Entry corrected.

It's possible the Undeposited Funds (UF) may not be visible in your Chart of Accounts due to its listing under a different name. You can check for Payments to Deposit instead. It usually appears by that name, especially for newly created accounts in QuickBooks Online. Moreover, as long as the JE has not yet been posted to the UF or  Payments to Deposit account, it will not be displayed on the bank deposit page.

On the other hand, aside from the entry number, you can use the date to filter out the audit log result. You can verify the JE from there. Then, I suggest reaching out to your accountant. Your accountant can guide you through the process of correcting the JE.

I'm adding these articles you can use in the future as you go to your tasks in QuickBooks:

• Learn about the chart of accounts in QuickBooks Online.
• Use account numbers in your chart of accounts in QuickBooks Online.

With that information, you'll be able to locate your Undeposited Funds and trace the origin of the journal entry. If you have more questions about journal entries, you can post them here again. I'll be around to help you. Stay safe!

My problem remains unresolved.  There is no previous transaction relating to Undeposited funds.  To summarize again, I tried to make a bank deposit transaction and the page is asking me to "Select the payment related to this deposit" followed by a previous  Journal Entry No.    When I trace the Journal Entry, there is only Debit Input Tax and Credit Vat Control.  Nothing else relating to Undeposited Funds.  What could be going on?

Thanks for keeping us updated on this, @netprosync. 

Since the issue remains even after doing the suggested steps, I recommend reaching out to our QuickBooks Support team. They can help further investigate the issue and walk you through a resolution. Here's how:
 

1. Sign in to your QuickBooks Online (QBO) company.
2. Go to the Help menu.
3. In QB Assistant, enter the topic you need help with. You can also enter questions.
4. Select Contact Us to connect with a live support agent.
5. Choose the Start a chat option.

In the meantime, I'm adding this article to further guide you in managing your account and your business's growth using QBO: QuickBooks Help Articles. It also includes topics about taxes, banking, and reports, to name a few.

Let me know how it goes in the comments below. If you have other concerns about creating a bank deposit, I'm just around to help.