Resolve negative deposits in QuickBooks Online (2024)

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.

The following sections guide you through the steps necessary to resolve a negative deposit.

Create the journal entry

The first step is to create a journal entry to move the funds from Undeposited Funds to the appropriate bank account.

1. Select +New.
2. Under Other, selectJournal Entry.
3. Enter the Date of the transaction.
4. On the first distribution line, selectUndeposited Fundsfrom the dropdown list in the Accountcolumn.
5. Enter the amount of the deposit inthe Debits column.
6. On the second distribution line, select the appropriate bank account from the Account column dropdown list.
7. Enter the amount of the deposit In the Creditscolumn.
8. Select Save and close.

The deposit is recorded as a deduction from the bank account.

Group the Journal Entry with the payments

Once you have created the Journal Entry, you must group itwith the payments to create a $0 deposit and remove the payments from Undeposited Funds.

1. Select +New.
2. Under Other, select Bank Deposit.
3. Select the payments and the Journal Entry you created. The total should be zero.
4. Select Save and close.

The payments are grouped with the Journal Entry and removed from Undeposited Funds.