Undeposited funds

[Unicorn313]

A company file I look after, uses Undeposited funds for banking.  I was under the impression that when you ticked the entry which was being banked, it deleted it from the list of undeposited funds.  This file is set up where the ticked deposit entry remains and it puts a corresponding entry on the withdrawal side for each ticked entry.  So if not reconciled at each banking date there ends up a lot of entries to be reconciled.  How can this be set up to allow it to delete each time when "banked" by Preparing a Bank deposit?

[RienaP]

Hi @Unicorn313,

A very warm welcome to the MYOB Community Forum. I hope you find this to be a useful tool.

To go any further, I understand that when you "Prepare bank deposit" the transactions remain in that window rather than clearing it to nil balance automatically. If this is the case then I would suggest you go to your accounts list and check the balance of the undeposited fund's account to see if the posting is being done. As you mentioned that there are transactions in that window,  it may be a case of transactions being grouped for deposit and the actual deposit transaction not being processed. Or it may be due to your cheque account being linked to the Bank Account for Undeposited Funds rather than Undeposited Funds account. 

Firstly, would recommend you to check and ensure that the actual bank account has been reconciled for this period and that there are no genuine deposit transactions waiting to be grouped and deposited into the bank. Secondly, create a new Undeposited Funds (Bank type Asset account) and link it under Setup >> Linked Accounts >> Accounts and Banking Accounts. This will clear out the amounts appearing in the Prepare Bank Deposits window.

I hope this helps. Please do post again should you have any further queries.

[Unicorn313]

Sorry I may not have explained correctly.  When i go to deposit from Prepare Deposit window, it clears from that window but in the "Un Deposited Funds" reconciliation, it puts a separate transaction into this account which has to be cleared by ticking each deposit and not a total amount of the deposit, and as well it remains there to be reconciled each time.  I was under the impression that it would clear each time.  Perhaps it means reconciling each time a bank deposit is done.

[RienaP · Accepted solution]

Hi @Unicorn313,

Thanks for your feedback and sorry for not getting the grip on the first instance.

You are absolutely right. When reconciling Undeposited Funds account you will have to clear all the deposits and withdrawals to balance off the transactions. Usually, Undeposited Funds account is not reconciled as it is a clearing account and clears the figures when you "Prepare Bank Deposit".

In your Accounts List, Undeposited Funds account always clears out to zero once it is transferred to your bank account but if you would still like to reconcile then you may need to reconcile on the same day that you transfer the funds as you will have manageable transactions to clear. 

Hope this helps! Please do let us know how you go as we are happy to assist further and feel free to post again should you have any other queries

[Unicorn313]

Yes thanks, that answers my questions.  We have just taken over this file (Company) where no one had looked at the Undeposited funds account and it did not balance, and still does not with several transactions in there which have obviously been banked.  I had to reconcile 59 pages of transactions to even get this far.  I will ensure it is done more frequently to ensure it is balanced in future.