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Conversion from Enterprise to QB Online has caused issues with class codes. I have several class codes with huge balances in undeposited funds. How do I clean these up?

Forum|Forum|5 years ago
July 8, 2021
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I have tried posting a journal entry, but then it appears in my deposits. There is also no way to clear them in the register by marking them as reconciled. Some of these class codes have been inactive for years.

QuickBooks Online

Best answer by Margaret G

Thank you to everyone who replied to this post. I have found the solution myself after much digging. The conversion caused the debits and credits in the cleared deposits to be separated in the class code area of Undeposited funds. Thus, all deposits were showing as credits under the correct class code, while the receipts/invoices were showing as debits in undefined.
Short version solution: Unclear then re-clear the deposit. Drill down in the class code, open the deposit, uncheck the deposited items, save, recheck the deposited items, save and close. Rinse and repeat.

The Detailed Solution is more complicated.
1. Create a control cash receipt, or use an existing one.

2. Drill down in the class code with a balance in undeposited funds.

3. Open a deposit.

4. Uncheck all the deposited items while making sure to check the control receipt.

5. Save the deposit by selecting PRINT and checking yes until the print preview appears.

6. Close the print preview.

7. Recheck the original deposited items and UNCHECK the control receipt.

8. Save and close.

9. Rinse and repeat until ALL deposits in the class code are cleared.

When doing the above, I had to reactivate old GL accounts & customers. I also came across some very old journal entries while clearing the deposits. Because they zero out, I have left them, since the whole purpose is a class code balance of zero.

R

Rasa-LilaM

Thanks for visiting the Community, Margaret G.

I appreciate you sharing the steps you’ve performed to clean up the balances in your undeposited funds.

Let’s create a deposit to correct your record, then, open the transactions to see how the classes were applied. I’ll help and guide you through the process.

Here’s how:

Tap the New menu in the upper-left and choose Bank deposit under Other.
This will open the Bank Deposit page.
Click the Account drop-down and select the account you wish to deposit the transactions.
From the list, tick the boxes for the entries you’re working on.
Press Save and close.

Let me share these resources to learn more on how the Undeposited Funds and Bank Deposit feature work.

You can run some reports to check how classes are linked to your entries. Here’s an article that will guide you on how to: Run reports by class.

Additionally, this link contains resources to help get acclimated to QBO processes. Click on the topic to get the complete details of the article: Self-help articles.

Keep me posted in the comment box below if you have other QuickBooks concerns. I’ll get back to help and make sure you’re taken care of. Wishing your business continued success.

Margaret GAuthor

These funds have already been deposited going back to 2007. If a journal entry is made to clear the balances, the amounts show up as being ready to be deposited again. If I create a deposit, the amounts just revert back a negative undeposited fund balance in the class code and I am right back where I started from. (I've snipped a sample.) What I need is a way to force the entries as being reconciled in the GL register.

And, unfortunately, drilling down in each class under Undeposited funds does not yield anything helpful because QuickBooks online does not post class codes in the balance sheet accounts.

JessT

Hi Margaret G,

I won't recommend doing journal entries to clear off the balance in the Undeposited Funds account. I presume you created a backup before you did that, so let's open your backup again. Then, please create another backup file before making changes.

Please understand why you have balances in your Undeposited Funds account. If they were already deposited before, they shouldn't stay in that account. Try checking for a short period like 1 month, then see the list of transactions. The DEBITED amount coming from sales or payments should be equal to the CREDITED (deposit). This will zero out the balance, not a reconciliation.

I would recommend contacting our QuickBooks Desktop Support about this. They can start a screen-sharing session to help you trace your transactions.

If you have other questions, let me know in the comment section below.

Margaret GAuthorAnswer

Thank you to everyone who replied to this post. I have found the solution myself after much digging. The conversion caused the debits and credits in the cleared deposits to be separated in the class code area of Undeposited funds. Thus, all deposits were showing as credits under the correct class code, while the receipts/invoices were showing as debits in undefined.
Short version solution: Unclear then re-clear the deposit. Drill down in the class code, open the deposit, uncheck the deposited items, save, recheck the deposited items, save and close. Rinse and repeat.