Clearing up unwanted entries in undeposited funds acct.

So, you go to a client's site and you find that they have reconciled their bank account but when you go to make deposits module, you find customer payments from months (even years) ago.

How can that happen? Oh, it happens, I have seen it. A bookkeeper will enter the customer payment to clear the open invoice and then go to make deposits window and enter the deposit again manually. So, in essence, they have cleared the customer balance, but the payment goes to undeposited funds and sits in limbo. When they enter the deposit directly, they are entering the deposit a second time. So, this is how you correct the problem:

1. Click on the Banking menu and choose Make Deposits.
2. Check the deposits that are erroneous and click OK.
3. In the next window, on the first blank line click in the “From Account” column.
4. Select the income account that was overstated by the duplicate deposit.
5. Enter in the amount field, the negative amount. This will make your net deposit zero.
6. Click Save & Close.

The next thing to do is teach the bookkeeper how Quickbooks works. Receive customer payment, make deposit (which will include the customer payment you just entered).

Check out my website www.rhodeislandbookkeeping.com