Reconciling Undeposited Funds
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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