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M
MUMC Finance
April 25, 2024
Question

Undeposited Funds reconciliation with bank Deposit

  • April 25, 2024
  • 1 reply
  • 0 views

I use a 3rd party payment processor for church donations. When I receive reports of transactions, I create a sales receipt for each donor and deposit to the Undeposited Funds account. When the bank deposit comes in, I match the deposit to the sales receipt and I deduct any processing fees. There could be multiple sales receipts on one day.

 

My issue is I had 2 sales receipts (2 donors) created on 2 different days. Donor 1's payment had to be reversed. Subsequently, when the deposit came in both donors were on the same transaction and it ended up being a net expense.

 

How do ensure donor 2 receives "credit" for their donation and Donor 1's payment is reversed?

1 reply

R
rvrfrf
April 25, 2024

Thanks for getting in touch with the Community, MUMC Finance. I appreciate your detailed information.
 

To verify my understanding, did these two payments get lumped into one transaction, or did the bank deduct your cancelled payment from the deposit? Once I have these details, I'll be able to do further research into what options you have.
 

I'll be looking forward to your reply. Have a lovely Thursday!

M
MUMC FinanceAuthor
April 25, 2024

Initially the bank accepted the donor 1 deposit. A few days later the bank cancelled the previously deposited amount of Donor 1 and accepted Donor 2's donation which was lumped into the same transaction yielding a negative deposit.

 

Thanks!

R
rvrfrf
April 25, 2024

Thanks for getting back with the Community, MUMC Finance.
 

If your negative deposit is currently in the Undeposited Funds account, you can't deposit a negative value entry by itself. Your net deposit must be a value greater than, or equal to, zero.
 

To resolve this, you can make a zero value deposit and record the negative value deposit with it.
 

Here's how:
 

  1. Use your + New button, then go to Journal Entry.
  2. Enter the transaction date in your Journal date field.
  3. On its first line, in the Account column, choose Undeposited Funds.
  4. From your Debit column, enter the single line deposit amount.
  5. On your second line, in the Account column, pick an appropriate bank account.
  6. In your Credit column, re-enter the single line deposit amount if it doesn't appear.
  7. Select Save and close.

 

After creating your journal entry, you can offset the negative value.
 

I'll be here to help if there's any additional questions or information you'd like to provide. Have a wonderful Thursday!

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