Mark_R and AbegailS seem to both be missing the point of the problem that debselpwyo and queenee444 are having with deleting the old undeposited funds. We can't deposit the (old, long ago deposited, spent & accounted for/reconciled) undeposited funds to a current account, or we will artificially inflate that bank balance. Debselpwyo tried making a journal entry, but that process ended up either artifically increasing the bank balance &/or artificially decreasing an income account. We basically want to delete all those undeposited funds without affecting our current bank balances or income accounts.
Perhaps we should create a new bank account named "Bogus Bank Account" (for the sole purpose of clearing old undeposited funds) and use that to make a bogus deposit of the old (previously deposited) undeposited funds - hopefully we could then exclude that particular account from all reporting, or even delete it altogether. I even thought about going back through all the (old, long ago deposited, spent & accounted for/reconciled) received payments, and changing "Group with other undeposited funds" to "Deposit to Bank"... but that just artificially inflated the bank balance too.
The important issue to consider with our problem is that these old undeposited funds are from a long time ago and no longer really "exist" for current accounting purposes. They have already been deposited, accounted for, & accounts reconciled. In debselpwyo's case, they arose over a 10-year period (2004-2014) which is now more than 7 years in the past, at a time when only the invoicing/payments were done in QuickBooks and all other accounting was performed using other software.
The question remains: How can we make these old (no longer relevant) undeposited funds go away???
Thanks for posting this concern in the QuickBooks Community, @debselpwyo,
Allow me to join the thread and share some steps to help you further with the U/F corrections. To avoid affecting your account balances, you can use a clearing account to transfer the amounts.
To create a clearing or wash account, use these steps:
- Go to the Lists menu, then select Chart of Accounts.
- Select Create +.
- From the Type ▼dropdown, select Cash on hand.
- Complete the account details.
- Select OK.
Once done, you can move the amount from the Undeposited Funds account to the clearing account using a bank transfer or a journal entry.
After that, you can make the clearing account inactive, so the system will zero out its balance. Here's how:
- Go to the Lists menu, then select Chart of Accounts.
- Select the account you want to make inactive.
- Select Settings ⚙️, then select Make Account(s) Inactive.
Learn how to manage your chart of accounts, using this link: Add, edit, or delete accounts in QuickBooks Desktop
If you have further questions or concerns about this, please let me know in the comment below. I'll be right here to guide you further with the corrections. All the best!
