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T
Thanks12
January 15, 2021
Question

Old undeposited funds

  • January 15, 2021
  • 1 reply
  • 0 views

Several undeposited funds from previous years showed on our balance sheet.  The payments had been applied correctly over the years but I didn't deposit them. I finally selected and deposited them not realizing the amount would go to the checking/savings account on the balance sheet. Now what should I do? This money was from 5- 10 years ago! 

1 reply

MichelleBh
MichelleBh
January 15, 2021

Hi there, Thanks.

 

I'll share some procedures that you'll need to do so the payments will correct. 

 

You'll need to delete the deposit in the Chart of Accounts (COA), then create a Journal Entry (JE). This way, the amounts will go to the perspective accounts. I'm happy to guide you in accomplishing this.

 

Before jumping into the steps, I'd recommend backing up your company file. So you have a copy on your old file. 

 

Once done, you can delete the payments by referring to the screenshot.

 

 

For more details, check out this article: Record and make bank deposits in QuickBooks Desktop. 

 

After that, go to the Company menu and select Make General Journal Entries. Then complete the Name, Date, Entry No., or Amount and hit Save and close. 

 

For more guidance, check out this page: Create a journal entry in QuickBooks Desktop for Windows or Mac. 

 

I'd also suggest consulting an accountant to help you in creating a JE. To ensure your books are accurate. 

 

I've also added articles about reconciling accounts, managing COA, and other related topics. 

 

 

Let me know if you need additional assistance. I'm happy to help you out. Keep safe!

T
Thanks12Author
January 20, 2021

Thank you for your answer. The payments in the Undeposited Funds that I just deposited were correctly deducted from the customers' balances when I entered them in Quickbooks (from 2009 to 2017). If I understand correctly,  the Undeposited Funds Acct. Is just a holding place until I select the payments made on that day and hit "save." At that time the total amount of the money received shows on the balance sheet under Checking/Savings Balance. Because I never selected those payments and saved them in the undeposited funds,  that means those totals did not show up on the Balance Sheet for all those years! Since I just selected and saved them,  it added $128,984.54  to my balance sheet for Checking/Savings for the last quarter of 2020. Can't I just do one Journal intro to delete that money from my checking/ savings balance? Of course I would have explaining to do if audited. 

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