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equinegoddess
October 16, 2018
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How to clear up undeposited funds account?

  • October 16, 2018
  • 1 reply
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I have an undeposited funds account that is YEARS old. All of the dollars, etc have been deposited in the appropriate bank accounts, and everything is reconciled. What is the simplest way to remove all of these entries. 

Followup question, what is then the easiest way to have sales receipts (lets say from Amazon) go into account when client is paid every two weeks via a deposit from Amazon. 

    Best answer by lynda11_2

    Fixing it depends on how these deposits (that duplicate the ones hanging) were deposited.  Were the original deposits just entered directly to sales/income acct. instead of using +bank deposit.  You can open the original deposits that these transactions were supposed to go to and add the payments and trash can the manual line item to the sales/income acct.

    Or just make one giant deposit and drop down a line and enter your income acct. with a minus amount of the total deposit to clear them.  Your net deposit would be zero.

    Either of these two methods works to remove them, but you really should do this under the guidance of your accounting professional since these are very old transactions and you may be working in a closed period of your books.

    1 reply

    lynda11_2
    lynda11_2Answer
    October 16, 2018

    Fixing it depends on how these deposits (that duplicate the ones hanging) were deposited.  Were the original deposits just entered directly to sales/income acct. instead of using +bank deposit.  You can open the original deposits that these transactions were supposed to go to and add the payments and trash can the manual line item to the sales/income acct.

    Or just make one giant deposit and drop down a line and enter your income acct. with a minus amount of the total deposit to clear them.  Your net deposit would be zero.

    Either of these two methods works to remove them, but you really should do this under the guidance of your accounting professional since these are very old transactions and you may be working in a closed period of your books.

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      equinegoddessAuthor
      October 16, 2018
      Thank you Lynda. I think this technique will work nicely. The original deposits were brought in by the bank interface. So by doing an end-of-the-year clearance that should make everything now balance. I have also changed the way PayPal, shop at Ron, Square are deposited into the accounts no longer undeposited funds. Thanks again
      A
      ashahrest
      April 30, 2019

      Hello!

       

      Is there another step to the solution provided, 

      "Or just make one giant deposit and drop down a line and enter your income acct. with a minus amount of the total deposit to clear them.  Your net deposit would be zero."   

       

      When I do this, I create a bank deposit to deposit all of the undeposited funds payments to my 1000 Checking Account, and below I am entering an equal but negative amount with the same 1000 Checking Account, so the deposit total is $0. However, when I check my chart of accounts, the 1000 Checking Account QuickBooks balance has increased by the amount of undeposited funds.

       

      Thank you,

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