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advance2201
May 12, 2021
Question

Clear out negative balance in Undeposited Funds

  • May 12, 2021
  • 1 reply
  • 0 views

Hello -

 

I have a negative $75 sitting in my Undeposited funds account back from 2016.  I attempted to create a JE to Debit Undeposited Funds and Credit Misc. account.  It will zero out my Undeposited Funds, but requires me to make a deposit.  When I do this the balance returns to a negative $75.  I tried reversing the debit and credit, Reversing the entry, many things - but the balance always returns

1 reply

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CharleneMaeF
May 12, 2021

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:

 

 

  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.

 

Once done, let’s deposit the payments. 

 

  1. Go to the Banking menu and then select Make Deposits.
  2. Choose the payment in the Payments to Deposit window.
  3. Select the bank where you want to deposit the funds.
  4. 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.

A
advance2201Author
May 12, 2021

Hi @CharleneMaeF  -

 

I appreciate the response and saw that recommended on another post.  This won't work for me.  I don't know if it's because it's a negative number - nothing shows up to be deposited without the JE. 

Maybe I'm missing something here?

 

 

 

JenoP
JenoP
May 12, 2021

Joining the thread to help you clear out the balance, advance2201.

 

QuickBooks does not allow to make a deposit if it's a negative amount. I'll share a workaround with you to clear out the amount in your Undeposited Funds account. Here's how:

 

  1. Go back to the Bank Deposit window.
  2. Add a second line and enter a positive $75 to make the amount of the deposit to zero. I'd recommend reaching out to your accountant to check what account to use in the From Account column. 
  3. Click Save and close. 

 

Let me also share these articles for more details:

 

 

Add more replies to this thread if you have other questions. You can also post new questions anytime you need help with QuickBooks. 

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