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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