How to correct undeposited funds? (2024)

‎October 15, 201806:10 PM

I have reconciled my bank account through December 2016. I show a balance in undeposited funds amount for September - December. How do I fix this since I have reconciled?

• QuickBooks Online

lyndaartesani

For majority of my clients, I personally process (ACH) payments once a month.

I have processed a payment through online bookkeeping account and cleared the invoice.

A week later funds was transferred to my bank account as a batch (multiple invoice payments), some invoices in my bookkeeping account reflected as "Deposited" as should be and some did not, It is showing as "Undeposited". How do I change Undeposit to Deposit.

Note: I did receive the correct amount of payment per client, the total payment amount as a batch was deposited to the bank, I was able to reconcile the month in my QB.

I have tried several methods mentioned here on your site to trouble shoot the situation. Unfortunately, I was not able to successfully make the proper changes. Perhaps there is another method to resolve this issue?

Mona

It seems like there are double tracking of payments,Mona.

If you've created a payment for the invoice already, you'll have to match the deposit to the payment instead of adding it.

Here's how:

1. Click Banking, then choose Banking.
2. Go to the For Review tab.
3. Choose the downloaded transaction/deposit, then click to open.
4. Choose Find match.
5. Choose the payment, then click Save.

I've got you an article for future reference:How to add and match downloaded banking transactions.

You can always get back to this thread if you need more help. Have a great one!

I can help you clear the amounts on the undeposited funds in QBO, @Rohit.

Undeposited Funds is created to hold funds until you are ready to deposit them. It serves as the default Deposit To account when you receive payments, use a payment item on an invoice, or enter a sales receipt.

To clear the amounts, you have to create a deposit transaction:

1. On the top menu, click the Create (Plus) icon and choose Bank Deposit.
2. Select the correct account, date, Currency, transactions and more.
3. Click Save and close.

To learn more about this, you can refer to this article:Record and Manage Bank Deposits in QuickBooks Online.

You can also refer to this link for future reference: https://quickbooks.intuit.com/learn-support/en-us/undeposited-funds/understand-how-the-undeposited-f....

Let me know if there's anything else you need or you have follow-up concerns. I'm still here to help you more.

Dear HoneyLynn_G

Thank you for your prompt reply.

It was very useful information for me and I understood. Is there any other way to clean up undeposited fund apart from?

Thanks

Rohit

It's nice to hear back from you, @Rohit.

You are very much welcome with the steps. I'm happy I came across your post and was able to address your concern.

As a confirmation, the only way to clear the undeposited fund is by depositing the amounts to your desired accounts. Meanwhile, I'm adding some more references about QBO. It provides the current updates and tutorials.

• Help articles for QBO
• All QuickBooks Tutorials
• QuickBooks Blog

Should you have any other questions that I can help you with, feel free to mention me on your posts. It's my pleasure to help you get back on your working track anytime. Cheering you a great weekend!

Hi there, @dgarcia611!

You can undo your transactions accidentally added into your register so you can match them to your existing transactions instead. I'm here to help you accomplish this.

1. Go to Banking.
2. Under Bank and Credit Cards, select you bank or credit card account.
3. Select the Reviewed tab.
4. Find your transactions accidentally added into your register.
5. On the ACTION column, select Undo.

Once completed, you can go back to the For Review tab and match your transactions to your existing records from there.

Lastly, I've also added this helpful article in case you want to review your transactions after matching them:Find, Review, and Edit Transactions in your Account Register.

If there's anything else that I can help you with, please let me know in the comment section down below. I'll be always around ready to help.

Not to worry,joslinjoice. I'm here to help you clear that from your Undeposited Funds account.

In QuickBooks Online, the Undeposited Funds serves as a temporary account that QBO usesto hold payments received from invoice before you deposit them into your real bank account. We can create a Bank Deposit to clear the amounts. Here's how:

1. Click on the + New button.
2. Select Bank Deposit.
3. From theAccount▼ dropdown, choose the account you want to put the money into.
4. Put a checkmark on the boxes for each transaction.
5. Click on Save and close.

That's it! If you have any additional concerns, please add them below. I'll be glad to help.

Hello there,AJ45,

QuickBooks offers two ways when receiving payments. You can use your bank account or the undeposited funds account.

TheUndeposited Funds accountholds everything before you record a deposit. If you're using QB Payments,we automatically process and moves transactions into your accounts. You don't need to use the Undeposited Funds account.

If you don't want to use the Undeposited Funds account, you can select the bank account in theDeposit tofield when creating a transaction. This will directly affect your bank register. Thus, you don't need to create a bank deposit.

Here's an article for more information about recording bank deposits:Record and make bank deposits in QuickBooks Online.

Let me know if you have more questions. I'll be happy to answer them for you.

Thanks,

I have many small transactions, so is there a way to make the bank the default in the" deposit to" box so that I do not have to edit all the transactions individually. This would save so much time and essentially wasted effort because all my income is paid directly into the bank and I do not have any real life undeposited funds.

Good day,AJ45!

I'm joining this thread so I can share more info about bank deposits.

QuickBooks Online doesn't have an option to set a default deposit account. However, we can turn on the pre-fill feature. This will automatically fill fields, like the Deposit to,based on the last saved transaction so you don't have to reenter it.

1. Go to the Gear icon and select Account and settings.
2. From the Advanced tab, select theAutomation section.
3. Toggle the Pre-fill forms with previously entered content. Click Save, thenDone.

If you need help in reconciling your account, you might want to check this link:Reconcile an account in QuickBooks Online.

Don't hesitate to post again if you have other questions. We'll be here to help.

I’m here to help clear those transactions, @kd0716.

It seems that you recorded your transactions twice and manually created a bank deposit. This is why its shows both payment and deposit in the Undeposited Funds.

If so, you'll have to delete the manually created bank deposit. Then process deposits for the received payments that are in the Undeposited Funds to clear the transactions.

Here’s how to delete a deposit:

1. Click on theGearicon.
2. SelectChart of Accounts.
3. Choose Undeposited Funds and clickView register.
4. Under theRef No. and Typecolumn, select the deposit.
5. ClickDelete.
6. SelectYes.

Once done, you can now make a bank deposit to clear the transactions. For further guidance, see this article:Record and make bank deposits in QuickBooks Online. You can also read this article to learn more about the Undeposited Funds (UF) account:What’s the Undeposited Funds account?

I'm leaving you some articles to learn more about searching and deleting a transaction in QuickBooks:

• Void or delete transactions in QuickBooks Online
• Search for transactions

In addition, here are some articles that you can read to help manage your other bank transactions in QuickBooks Online:

• Categorize and match online banking transactions
• Reconcile an account in QuickBooks Online

I'd like to know how you get on after trying the steps, as I want to ensure this is resolved for you. Just reply to this post and I'll get back to you. Take care always, @kd0716.

I’ve got some information to share with you, @kd0716.

As long as the transactions aren’t included from your reconciled ones, the instructions indicated above won’t affect your records.

You can contact your accountant to assist you personally. They can help ensure books are accurate.

If you don’t have one yet, you can visit our ProAdvisor website. Our ProAdvisors can guide you further from technical and accounting perspectives. They also have access to training materials, software tools, and dedicated support resources to ensure they can provide you with hands-on support when you need it. Just simply enter your city or ZIP code.

Here’s a complete reconciliation guide to help you optimize your reconciliation processes:Learn the reconcile workflow in QuickBooks. It contains troubleshooting instructions and ways to modify completed reconciliations.

Don’t hesitate to reach out back if you have any other concerns or questions besides clearing your transactions. We’re always here to help you out. Take care and have a good day!

Hello, when reconciling payments made via "Quickbooks payments" it always shows 1 match and I always have matched these transactions clicking "match". But, unfortunately I just noticed that these reconciled matches are showing in the bank register under the account of "Undeposited funds".

Can I use a journal entry with the total of the undeposited funds to fix this issue and correct the totals on the Balance sheet? I already reconciled multiple banking statements.

How can I prevent this from happening for future transactions? Why is QB showing a match but it goes to the "undeposited funds"?

Thanks for joining the thread, @dca_1. I'd be glad to provide information and assist you with each of the details you need concerning undeposited funds in QuickBooks Online.

As provided by my colleague above, the Undeposited Funds accountholds everything before you record a deposit. We process and move transactions into your accounts automatically if you are using QB Payments.

Yes, you can also create a Journal entry and offset the value of a negative deposit.Here’s how:

1. Select+New.
2. UnderOther, selectJournal Entry.
3. Enter the transaction date in theJournal datefield.
4. On the first line, in theAccountcolumn, select theUndeposited Fundsaccount.
5. In theDebitcolumn, enter the single line deposit amount.
6. On the second line, in theAccountcolumn, select the bank account.
7. In theCreditcolumn, re-enter the single line deposit amount (if it does not already appear).
8. SelectSave and close.

From there, you can now offset the negative value.Let me guide you on how:

1. Select+New.
2. UnderOther, selectBank Deposit.
3. Select the payment and theJournal Entryyou created.
   The total should be zero.
4. SelectSave and close.

However, I’d also suggest consulting your accountant. They can give you the best advice on handling these transactions.

To avoid the issue from happening in your future transactions, you can choose the bank account in the Deposit to field if you don't want to use the Undeposited Funds account. This will directly affect your bank register.

Moreover, feel free to visit these helpful resources that can help you along the way in managing payments and other transactions in QBO:

• Record invoice payments in QuickBooks Online
• Unmatch downloaded bank transactions or move them to another account

If you have any other questions about managing your bank transactions in QBO, please feel free to leave a comment below. I'll get back here as soon as I can to help you again. Thanks for dropping by, wishing you a good one!