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brentbernard-cou
January 3, 2021
Question

I have a negative CC deposit to Undeposited Funds. Adding a negative bank deposit doesn't work. I attempted the journal entry solution posted here but didn't work.

  • January 3, 2021
  • 1 reply
  • 0 views
The transaction was paired with another CC transaction but the balance was still negative. QB won't allow me to add a negative Bank Deposit. I'm not sure how to fix this with a journal entry and I am not able to match the entry with the uploaded bank transaction. Any help would be greatly appreciated.

1 reply

J
JonpriL
January 3, 2021

Hello @brentbernard-cou,

 

You can select your undeposited funds and bank account as the source account of your journal entry to zero out the negative balance. Let me who you how.

  1. Go to the + New button.
  2. Under OTHER, select Journal Entry.
  3. Select the date of your journal entry.
  4. On the first line, select Undeposited Funds under the ACCOUNT column.
  5. Below the DEBITS column, enter the amount equal to the negative balance.
  6. On the second line, select any of your bank accounts under the ACCOUNT column.
  7. Below the CREDITS column enter the same amount.
  8. Click Save and close.

Once done, you'll have to deposit the journal entry to offset the negative credit card balance:

  1. Go to the + New button.
  2. Under OTHER, select Bank deposit.
  3. On the Select the payments included in this deposit section, select the journal entry you've created.
  4. Click Save and close.

Additionally, I've got you this helpful article for guidance in preparation for the 2020 tax season: QuickBooks Online Year-end Checklist.

 

If you have any other questions, please let me know in the comments below. I'll be here to lend a helping hand.

B
brentbernard-couAuthor
January 5, 2021

I'm sorry but this didn't seem to fix the problem.  To be clear, there was a $331.63 withdrawal from the checking account equal to a client CC refund.   This was also paired with a $23.96 deposit for another client's CC charge for a service.  This left a net withdrawal of -$307.67, (including a $1.04 CC fee).  When I enter the journal entry, as you instructed, it creates a positive balance, (debit $331.63 to Undeposited funds; credit $331.63 to checking).   It shows a deposit $331.63 in Bank  deposits and this is a withdrawal.  It will not match to the downloaded bank transaction.  I'm left with the same problem unfortunately. 

IamjuViel
IamjuViel
January 5, 2021

Hello there, @brentbernard-cou.

 

You can write a check or create an expense transaction to record the money you take away or withdraw from your bank account. I've added a screenshot for your reference.

  1. Go to the New icon (+).
  2. Choose either Check or Expense.
  3. From the Bank Account drop-down, select the account where the transactions are posted.
  4. Under the Category detail section, enter the following:
    • 3331.63 (total amount of withdrawal), you can use an AR account (or any Income account used in the original transaction) since this transaction is for client CC refund.
    • 1.04 for the credit card processing fees
    • - 25.00 (This is the total amount of your client's payment ( $23.96 +Credit Card fee) for the service you rendered.) 
  5. Click the Save and Close button. 

I'm adding these articles to learn more about how QuickBooks handles your expense-related transactions:

Lastly, I'd recommend consulting with an accountant so you'd be assisted in tracking your income and expense transactions correctly.

 

Keep me posted if you have other questions or concerns. I'm always here to make sure you're able to achieve your goal.

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