How to clear out Undeposited Funds

Happy New Year, KB001. I'm here to help you clear the payment in your Undeposited Funds (UF) in QuickBooks Desktop (QBDT)

Based on the details you've provided, there are a few options to address this issue. First, was the payment reflected on your bank statement? If it was, we will need to process a chargeback to properly clear the payment, enabling you to reconcile it accurately. On the other hand, if the transaction does not appear on your bank statement, you can simply delete the payment from Undeposited Funds. I also recommend consulting with an accountant for additional advice and options to ensure your books are accurate.

To process a chargeback, you can either create a refund transaction or record it as a business expense by issuing a check.

Here's how to create a refund:

1. Go to the Customers menu and select Create Credit Memos/Refunds.
2. Choose the customer you need to refund in the Customer:Job dropdown.
3. Enter the products and services you are refunding.
4. Once completed, select Save & Close.
5. You'll be prompted to the Available Credit window. Choose to Give a refund and click OK.
6. Once prompted in the Issue a Refund window, choose how you want to refund the transaction from the Issue this refund via field. If you choose Cash or Check, select the account used to pay the refund.
7. Select OK when finished.

For instructions on creating a check, please refer to this article: Create, modify, and print checks in QuickBooks Desktop.

Here's how to delete the payment:

1. Go to Customers and select Customer Center.
2. Navigate to the customer and open the old invoice payment.
3. Click Delete.

Additionally, you may find this article helpful for keeping track of your sales and expenses using predefined reports: Customize customer, job, and sales reports in QuickBooks Desktop.

Please feel free to continue this conversation if you have any more questions or need further assistance clearing your Undeposited Funds in QuickBooks Desktop, KB001. We’re always here to help whenever you need us.

RE: How do I clear out the payment in undeposited funds that was never received?

Void or delete it, since it never happened.