Skip to main content
S
suzannek1
November 10, 2023
Question

How do I clean up undeposited funds from the past?

  • November 10, 2023
  • 2 replies
  • 0 views
Way before my time the accountants made journal entries using undeposited funds.  The balance is zero, but the je's keep showing up on my deposit  screen.  What do I do?

2 replies

J
JanbonN
November 10, 2023

Hello there, @suzannek1. Allow me to provide some info and ways to solve your issue.

 

Transactions in your Undeposited Funds account will continue showing whenever you make a bank deposit because this serves as a reminder that you still have transactions left in it.

 

If you want to avoid seeing the JE from appearing when making a deposit, you can transfer the amount in the Undeposited Funds account to a designated account. You can create a Journal Entry, debit the Undeposited Funds account, and credit the designated account. You should seek guidance from your accountant to determine which account to create or use.

 

Additionally, if you have transactions in your bank similar to those in the undeposited funds, you can manually match them to link and move them out of the undeposited accounts.

 

Furthermore, you can also directly create a bank deposit and select all the undeposited funds transactions to transfer them to a designated account.

 

Ensure your financial statements are accurate by mastering the art of reconciling your bank and credit card transactions in QuickBooks.

 

The Community is always available to assist with any questions regarding account balance. Have a great day!

S
suzannek1Author
November 13, 2023

Thank you. As it turns out these journal entries into undeposited Funds were well before my time.  They were from 2004.  And they zeroed each other out but kept showing up.  I have already moved them to another account since the sum is zero. 

MariaSoledadG
MariaSoledadG
November 13, 2023

Let me guide you on how to clear up undeposited funds from the past, Suzanne.

 

One of our primary goal is to maintain high accuracy level, keep an eye on our transactions and manage in case of any financial discrepancies. 

 

Clearing up on these deposits depends upon on how it's entered in QuickBooks. If it is entered directly to the account, you can open the original deposit and manually delete the transaction by clicking the trash icon: Here's how:

 

  1. Go to the Reports menu, search for Deposit detail.
  2. Locate for the Deposit by clicking the transaction.
  3. You can delete the deposit transaction.
     

 

Another way is to create a giant deposit with a negative amount and the correct income account. This clears up the total deposit . However, I still recommend reaching out to your accountant so you'll be notified on the possible effects when using this process. Other than that, they can also suggest other options and guide you on what to do. 

 

In addition, QuickBooks offers a variety of reports that you can use in case you might need to double-check information. Learn how to customize them to ensure you'll get the data you need most: Customize Reports In QuickBooks Online.

 

Let me know if you have any questions about undeposited funds. I'll be one post away if you need further assistance.

D
dawnk16
July 7, 2024

I have about 6 items sitting there when I go to make a deposit.  These are old problems from the past that I just want to get rid of. The problem is that the G/L balance for Undeposited Funds is zero.  If I add all these items to a deposit and then zero it out to Retained Earnings, it creates a -$4987 in Undeposited Funds.  If I make a JE to Undeposited Funds to offset it, that then shows up in the Deposit window.

 

I went back to each item and changed it from Undeposited Funds to the checking account but that too created the negative total in Undeposited Funds on the GL.  I realize I have a major problem with the GL but it's so old I just want to make it all go away and can't figure out how to get the items out of the Deposit screen while keeping the Undeposited Funds GL account at zero.

E
ErwinQ
July 7, 2024

Hello there, Dawnk. I'm here to provide information about your account in QuickBooks Online (QBO).

 

Since you've already followed the steps provided by my colleague, but still encountering an issue, I recommend contacting your accountant. This way, they can give professional advice on what appropriate account you need to use.

 

If you don't have one, you can visit this website to find one: Find a ProAdvisor.

 

Additionally, you can read this article for guidance to learn more about personalizing your reports in QuickBooks: Customize reports in QuickBooks Online.

 

If you have more concerns related to any QuickBooks product, you can always come to the Community forum. We're available 24/7 to support.

D
dawnk16
July 7, 2024

I am the accountant. Thie issue is not what account to use. The issue is how can I fix the amount in the Undepisited Funds GL account without it showing up in the To Be Depisited window?

    Terms & ConditionsAccessibility statement