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EMcLain53
March 12, 2025
Question

undeposited funds

  • March 12, 2025
  • 1 reply
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I recently took over the bookkeeping for a small machine shop. They were using Quickbooks desktop, and used it for several years. At the first part of the year we switched to QB online. Now in the CASH account there are several undeposited funds that are showing up, some from a few years ago.and QB is trying to apply the funds as credit. The bank statements confirm the funds have been deposited and the the bank has been reconciled up to date. How do I reflect, remove, delete, or deposit the funds to make my account right? 

1 reply

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ZuzanG
March 13, 2025

Undeposited Fund (UF) transactions from your Cash account are awaiting deposit into the relevant bank. These reconciled bank transactions can potentially be the exact matches if you connected your bank with QuickBooks Online or manually imported the entries. To resolve this, I suggest undoing your bank reconciliation.

 

You can reach out to your accountant to help undo a reconciliation period. Alternatively, you can manually undo each reconciled transaction.

 

Let me show you how:

 

  1. Click the Gear icon, then select Chart of Accounts.
  2. Select the right bank that you want to undo the reconcile or view the transactions, then select the View register.
  3. Click the funnel icon to filter the date to those transactions that you manually undo the reconciliations.
  4. Click the Apply button.
  5. Select the transaction and review the check icon column. If the transaction has been reconciled, you will see an "R."
  6. Continue clicking the box until it is empty or displays a "C." This action will remove the transaction from the reconciliation.
  7. Hit Save.

Once done, you'll have to match the transactions from your bank and then reconcile your bank account again. Take note of having a bank account statement as your basis for matching and reconciling transactions within a period. 

However, if these transactions came via the migration process from QuickBooks Desktop to QuickBooks Online, I suggest consulting your accountant for accurate bank records. Their expertise can help you identify which transactions should be removed/deleted or deposit funds to make the account right.

 

Additionally, you can check this article to learn how to get a quick overview of your business: Run a report in QuickBooks Online.

 

Feel free to revisit this thread for any additional questions or assistance regarding undeposited fund transactions. We are committed to providing you with the best support.

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EMcLain53Author
March 13, 2025

Thanks for the response. I don't want to go this route unless absolutely necessary. Some of these funds go back to 2023. They are accounted for in the chart of accounts and have been reconciled, so it appears to me as duplicate. I just don't want to delete them if it will mess up the reconciliation, and I don't want to deposit them, because then it adds it as another deposit. I'm just needing to get rid of them somehow so qb stops trying to credit other invoices.  I will keep digging.

    FishingForAnswers
    FishingForAnswers
    March 13, 2025

    @EMcLain53  Hate to say it, but going by your description, the bottom line is that someone screwed up in the reconciliations of years past.

     

    If duplicate transactions were used in the reconciliations, then there should be other unnecessary transactions in your books to offset those duplicates.

     

    Unfortunately, depending on the size of your business, this may also mean that any corrections will need to be done in the latest non-closed period.

     

    It may be in your best interests to have either a local accountant come in to consult, or have an expert remote in to take a look. Rabbit holes like these tend to go pretty deep.

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