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LindsayB1
November 24, 2022
Question

Old Undeposited funds/ Unapply payment on invoice

  • November 24, 2022
  • 1 reply
  • 0 views

Hello,

 

There are a number of payments sitting in an Undeposited Funds account, going back to 2020.

My question is- if I hit the "Un-Apply Payment" button on a payment that was recorded in error, will the affect past periods?  I see that after I click this button, the invoice shows as outstanding.  When I try to receive payment on the outstanding invoice, a credit had been created for that amount.  Is it okay for me then to apply that credit to the invoice, and then deposit the payment that had already been sitting in the undeposited funds account?  Screen Shots attached.

 

Thanks, and I appreciate any feedback !!

 

Lindsay

1 reply

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Pete_Mc
November 25, 2022

It sounds like the issue is with how you showed the Deposit in the Bank, not with the Payment.  If you go to one of the invoices that connected with the Undeposited Funds Acct, it is probably going to show Paid. 

 

The process is that your get a check from ABC for Inv 123 and you go to Receive Payment and show the payment (Invoice now shows Paid or a partial payment applied).  Whenever you go to the Bank to Deposit the check (or use your phone) you would go to Baking and then Make a Deposit and the money is moved from the Undeposited Funds Acct to the correct Bank/Checking Acct. 

 

My guess is you correctly Received a Payment and showed the Invoice Paid.  But then you went directly to the Bank Acct and showed the Deposit.  So you've showed receipt of that money twice.

 

Since you're talking some of these deposits going back to 2020 you're going to want to have a discussion with your CPA/Accountant.  Any changes to duplicate entries is going to change their Recorded/Filed number they used for the Year End.  Also, with their QBs Accounting Version they can make the corrections in 2020 and 2021 much easier than you can.  If you *really* know QBs, there is a way to go back and deleted the Bank Register Deposit and then correctly make the Deposit from the UDF Acct, THEN Re-Reconcile that month.  But if you don't know exactly what you're doing, you can really mess up your books.  So the Accountant's Version is the way to go.

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