Reconciling Undeposited Funds

Question

I am trying to reconcile undeposited funds.  It's out by a few hundred and I believe it's because sales have been entered in June but not banked until July, plus probably a few minor errors here and there. I've undone the reconciliations to find where the account balances but not sure how to know when I'm there.  For example, Last Reconciled Date is 7/4/2017 but there is still $478.40 of deposits dated 6/4/2017 and 7/4/2017 unreconciled. Any help would be appreciated as I am just wanting to find ground zero. Cheers, Jackie

Tracey_H · Accepted Answer

@Jackie-AOTAS

Hi Jackie

Thanks for your post. As the Undeposited Funds account is a clearing account you should have a debit and credit for each transaction so that you can reconcile it to $0.00. I found the easist way to find out of balance issues was to match up the debit and credit for each transaction which will leave you with the unmatched transactions not ticked. You can then work out why those transactions don't have a match.

In this example I've changed the Closing statement balance to $0.00 and entered the 31/03/2021 as the bank statement date. I've then ticked the two sets of matching transactions, leaving CR000124 unticked as it doesn't have a match because the Prepare Bank deposit transaction was recorded on the 01/04/2021. The account reconciles to $0.00 so I can reconcile as at 31/03/21.

After reconciling to the 31/03/21 I enter the bank statement date as 30/04/21. Transaction CR000124 that didn't have match in the March reconciliation can now be matched with the April Prepare Bank Deposit transaction.

In your example I would expect there to be Prepare bank deposit transactions (withdrawals) to match with those deposits after the 7/4/2017 so they would be included in the next reconciliation period. If you have a lot of transactions it might be easier to do this for smaller periods, eg, weekly.

Please let me know if you need further help.

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