Undeposited Funds General Journal

[Angela22_06]

Hi there,

I have a client with a large volume of transactions that run through the undeposited funds account (business has a high volume of sales). When I get to preparing the end of year accounts there are a few transactions that don't clear (small errors) and all I want to do is journal them out of this account to clear the balance to nil (not material to investigate cause of error). However if I record a general journal against undeposited funds / sales, which corrects my issue in the general ledger, the client ends up with an uncleared entry in the Prepare Bank Deposit screen. Therefore, how do I clear the undeposited funds ledger balance without creating an entry under Prepare Bank Deposit?

Cheers

[Tracey_H]

Hi @Angela22_06 

Thanks for your post. One way you can deal with is in the Prepare Bank Deposit window, tick all those small errors you want to write off and note the total. Then click on Deposit Adjustment in the bottom left corner and in the Bank and Deposit Adjustments window allocate that total amount to an account like Rounding and Adjustments, click Record.

Once you're back in the Prepare Bank Deposit window, tick that adjustment transaction and your deposit amount should now be 0.00. Record the transaction. Your Prepare Bank Deposits window and Undeposited Funds account should now be clear of those amounts, your bank account isn't affected because it's a 0.00 deposit and you've written off those amounts to the applicable account.

Please let me know if you need further help.

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

[Angela22_06]

Hi Tracey,

Thank you for your response. Unfortunately this is not possible in this situation as there are no transactions that have not been cleared from the Prepare Bank Deposit window. That is, as far as this screen if concerned I have no balance in my undeposited funds, however in the general ledger I have a balance whereas I need it to be nil. Is there any other possible solution for this scenario?

Cheers,

Angela

[Tracey_H · Accepted solution]

Hi @Angela22_06 

That does make it a bit tricky. Ideally you would need to go back and find the transactions that are causing the balance in the Undeposited Fund account but in your situation that may not be worth the time and effort.

The only other option I can think of would be to create a new Undeposited Funds account. You would then need to go to Setup>>Linked Accounts>>Accounts and Banking Accounts and link the new Undeposited Funds account to Bank account for Undeposited Funds. 

If you were to create a new Undeposited Funds account, make sure the Prepare Bank Deposit window is cleared first. This won't fix the issue with the old Undeposited Funds account, but it will allow you to start fresh with a new account. Reconciling that account in the Reconcile Accounts window will allow you to keep on top of any discrepancies that occur.

Please let me know if you need further help.

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.