Forum Discussion

2 months ago

Balance in Undeposited Funds but no deposits to prepare

I have a balance in the Undeposited funds account at the end of the Financial Year (ours is 30/9/24) but no corresponding deposits to clear. I can see 2 adjustments of the problem amount ($105.70 in 2017 and 2019) that may have caused this problem but I cannot go back and make adjustments in previous financial years that pre-date my time with this company file. I need a way to clear the balance in undeposited finds that does not put a transaction into the Prepare Bank deposit screen - can this be done?

MYOB undeposited funds query.pdf197 KB

undeposited funds

Genreve_S
2 months ago
Hi Kristy35,

There's no way to adjust the account without adding a new transaction to the undeposited accounts. It might be a good idea to talk to an accountant or financial advisor for advice specific to your situation.

Regards,

Genreve

Isaiah_C
MYOB Moderator
2 months ago
Hi Kristy35,

Since the balances are from previous financial years (2017 and 2019), it's important to verify journal adjustments or deposits that might not have been cleared. You mentioned being unable to adjust these historical entries, so we'll explore alternatives.

To resolve the balance without impacting the current Prepare Bank Deposit screen, you can create a general journal entry to offset the balance in the Undeposited Funds account. Use an appropriate clearing account or income/expense account for this adjustment, based on your accountant's advice.

Given that the issue spans multiple financial years, it's advisable to consult your accountant. They can guide you on the best way to handle the adjustment without affecting compliance or financial records.

Regards,

Sai
Kristy35
2 months ago
Hi Sai,

Thanks for the response. I have already tried creating a Journal entry debiting the $105.70 out of Undeposited funds, but that creates a deposit in the Prepare bank deposit screen (see attached). If I deposit this from here into another account (ie Suspense Account or similar) it creates a credit into the Undeposited funds account effectively cancelling out the Journal entry and I am back where I started.
- Genreve_S
  MYOB Moderator
  2 months ago
  Hi Kristy35,
  
  There's no way to adjust the account without adding a new transaction to the undeposited accounts. It might be a good idea to talk to an accountant or financial advisor for advice specific to your situation.
  
  Regards,
  
  Genreve