How to Remove Deposited items from Undeposited Funds

In QuickBooks, you may have deposited a customer’s check, then recorded a separate Payment. This will overstate your income because your income is recorded by both Invoice and the Deposit. If the Deposit was in a previous accounting period and cannot be changed, then you can remove the Payment from the Payments to Deposit window. You need to create a zero deposit by using the overstated income account.

Important: Prior removing payments from Undeposited Funds account, you have to make sure:-

1. Consult your accountant and you need to be certain that income & tax effects from the previous fiscal years are properly recorded.
2. Should create a backup of your data file without overwriting any other backups.

Here are the steps to do this task:-

Step 1 – In the Banking menu, select Make Deposits.

Step 2 – In the Payments to Deposits section, select the payment(s) that was deposited separately and then click on OK.
Note: The payment should show up in the ‘Make Deposits’ screen.

Step 3 – In the Make Deposits window, click on the From Account column on the first blank line an then select the overstated income account.

Step 4 – Enter the negative amount in the Amount column. Be sure the Deposit total is zero.

Step 5 – Click on Save and Close.

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Kristin is a content strategist at Techarex Networks. Kristin follows the B2B technology space closely and loves to write on the latest changes in technology, futuretech and fixes for day to day how to issues. Besides writing Kristin also loves music, moves and skating.

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