Sometimes, negative value transactions show up in Undeposited Funds and appear on the Bank Deposit screen (for example, if you issue a customer refund from Undeposited Funds).
You can't deposit a negative value entry by itself. The net deposit must be a value greater than or equal to zero. To resolve issues with negative transactions in Undeposited Funds, make a zero value deposit and record the negative value deposit with it.
Use the following steps to help you create a Journal entry and offset the value of a negative deposit in Undeposited Funds.
Create a Journal entry
- Select +New.
- Under Other, selectJournal Entry.
- Enter the transaction date in the Journal date field.
- On the first line, in the Account column, select theUndeposited Fundsaccount.
- In the Debit column, enter the single line deposit amount.
- On the second line, in the Account column, select the bank account.
- In the Credit column, re-enter the single line deposit amount (if it does not already appear).
- Select Save and close.
Offset the negative value
- Select +New.
- Under Other, select Bank Deposit.
- Select the payment and the Journal Entry you created.
The total should be zero. - Select Save and close.
Now you know how to resolve issues with negative transactions.
FAQs
If a total deposit is negative, you must create a journal entry to move the funds from Undeposited Funds to the bank account, and then group the journal entry with the payments to create a $0 deposit and remove the payment from Undeposited Funds.
How to clean up negative undeposited funds in QuickBooks Online? ›
If a total deposit is negative, you must create a journal entry to move the funds from Undeposited Funds to the bank account, and then group the journal entry with the payments to create a $0 deposit and remove the payment from Undeposited Funds.
How to correct undeposited funds in QuickBooks Online? ›
How to correct undeposited funds?
- Click on the + New button.
- Select Bank Deposit.
- From the Account ▼ dropdown, choose the account you want to put the money into.
- Put a checkmark on the boxes for each transaction.
- Click on Save and close.
To start the process, navigate to the 'Plus' icon on the Quickbooks Online dashboard and select 'Bank Deposit'. Then, choose the account to deposit the funds into and enter the deposit amount. Next, select the payments to include in the deposit from the undeposited funds list.
Why is there a negative balance in QuickBooks online? ›
In QBO, when your bank balance shows negative, it's usually a result of making payments or processing checks that contain a larger amount than the money you have in your checking account. If this is the case, what you'll want to do is to generate a report.
How do you fix a negative balance in undeposited funds? ›
You can't deposit a negative value entry by itself. The net deposit must be a value greater than or equal to zero. To resolve issues with negative transactions in Undeposited Funds, make a zero value deposit and record the negative value deposit with it.
How to clear uncleared transactions in QuickBooks Online? ›
Uncleared transactions
- From the File menu, select Switch to Single-user mode. ...
- Go to the Accountant menu and select Batch Delete/Void Transactions.
- Choose the transactions you want to delete or void from the Available Transactions list.
- Click on Review & Delete (or Review & Void).
The Undeposited Funds account holds customer payments in QuickBooks until you deposit them at your real-life bank. Once you have your deposit slip, you can combine these payments into a single record so QuickBooks matches your bank records.
Why do I have a balance in undeposited funds? ›
This is a “safety” feature in accounting, used to track the process of making a physical deposit. Undeposited Funds are payments that have been received but have not been physically deposited with the bank.
Is there an undeposited funds report in QuickBooks online? ›
In the report, you can see a list of undeposited funds that covers a default report period of 90 days. Note: You can change the date range in the Report period ▼ dropdown to view previous undeposited funds. Go to Transactions, then select Chart of accounts (Take me there).
Clearing old unreconciled transactions
- From the File menu, select Switch to Single-user mode. ...
- Go to the Accountant menu and select Batch Delete/Void Transactions.
- Choose the transactions you want to delete or void from the Available Transactions list.
- Click on Review & Delete (or Review & Void).
If you've found the issue:
- In the Deposit window, go to the QuickBooks Payments section.
- Review the list of checked and unchecked payment transactions. ...
- Check the deposit total. ...
- When the deposit in QuickBooks matches your bank statement, select Save.
The most common types of recurring transactions include: Bill, Check, Expense, Invoice, Journal Entry, Purchase Order, Sales Receipt and Purchase Order.
How do I get rid of bad debt in QuickBooks Online? ›
In the Product/Service section, select Bad debts. In the Amount column, enter the amount you want to write off. In the Message displayed on statement box, enter “Bad Debt.” Select Save and Close.
How to clear negative bank balance in QuickBooks? ›
Group the Journal Entry with the payments
- Select + New.
- Under Other, select Bank Deposit.
- Select the payments and the Journal Entry you created. The total should be zero.
- Select Save and close.
If QuickBooks makes the wrong match
- Select the transaction to expand the view.
- Change the selection from Match to Add. ...
- Select the Payee and Category.
- Select Add.
- Go to the Reviewed tab.
- Find and open the transaction.
- Add any other details you need.
But if you're past the point of no return, follow these four steps to fix negative inventory in QuickBooks.
- Step 1: Review quantity on hand. ...
- Step 2: Convert open purchase orders to bills. ...
- Step 3: Take physical inventory. ...
- Step 4: Replenish stock.
Go to the Edit menu and then select Preferences. Select Payments from the list. Then go to the Company Preferences tab. Select and uncheck the Use Undeposited Funds as a default deposit to account checkbox.
How do I delete a negative open balance in QuickBooks? ›
Let me show you how.
- Go to the +New button.
- Under CUSTOMERS, select Credit Memo.
- Select the name of the customer with the negative balance in question.
- Under PRODUCT/SERVICE, select the item you remember listed on the invoice linked to the last payment made.
- Enter the amount equal to the negative balance.
