How to Delete Undeposited Funds in QuickBooks
Yes, it’s your pain-in-the-neck fan again!
I finally got my computer up and running again, and QB Pro 2011 installed. I’ve set up my client — only he decided he wanted his A/R, income & expenses in 3 different companies, but he WAS paying from his personal checking account, then opened a biz checking account the he used for all 3 businesses, and now FINALLY, has opened another biz account for 1 of the other companies and discontinued 1 company.
Anyway, in posting the history I’ve put the company checking account in one company and used inter-company accounts — I posted everything in one company, so I can reconcile the bank account, then post some transactions in inter-company for the other 2 businesses and reconcile their inter-company accounts.
However, I have run into a prob — since 2 companies do not have bank accounts, I post the payments thru A/R and then the “bank account” is a suspense account, and I then do JE’s to move the payments to Inter-company (for some reason, I can’t choose the inter-company account as a “bank account” — this may be because I originally set them up as Equity accounts since this guy & his wife file a joint 1040 and the 3 companies are all on Sch C’s, but now I’m not sure if I should have done that…).
Anyway, I somehow posted something wrong (go figure! I’m pulling my hair out for lack of answers when I ask questions, they didn’t keep a check register, didn’t take copies of checks deposited, and can’t remember or don’t feel like answering), and now I’ve got stuff in Undeposited funds I want to delete, but it tells me to delete the payment first — and I can’t find where to do that! One would think it would be in A/R, but I get the same message there.
I know you posted about this before — and I have saved a lot of your posts on LinkedIn, but I can’t find this one now that I need it!! Can you copy and paste it, and then send it to me, please? You’ve already been so helpful, and I hate to bug you again!
Thanks so much for all your assistance!
But in answer to your question – if you entered the payments twice, you can delete the duplicate payment in the Customer Center. However, that’s not what usually happens. Instead of going to Banking > Make Deposits, most people just enter the payment in the register. When they do this, they duplicate the revenue. If there aren’t many of these, go into the checking register, open the deposit, delete the incorrect deposit (that doesn’t use Undeposited Funds as the account), select the Payments button and add the correct payment sitting in undeposited funds. As long as the total on the deposit doesn’t change, you won’t affect your bank reconciliation.
However, if you have a lot of these it’d be easier to determine which account(s) were used on the incorrect deposits (other than undeposited funds), select all the undeposited funds in Banking > Make Deposits, and add an additional line at the bottom using the incorrect accounts with a negative amount creating a $0 deposit.
This article is provided for informational purposes and is not intended to be construed as legal, accounting, or other professional advice. For further information, please consult appropriate professional advice from your attorney and certified public accountant.