Banking and Undeposited Funds

by Bek
(Australia)

Hi Jennifer,

I am having trouble with banking and undeposited funds.

I am baby stepping my way around QB’s trying to recover an account that has not been reconciled since Oct 2004 – very bad.

Banking has not been done in the correct manner for a long time eg, instead of doing it on QB first and getting amounts to equal undeposited funds, the cash box was just cleaned up by taking random amounts and banking them rather than a total of sales.

Now the problem is trying to enter the deposits into the system to match bank statements as selecting from undeposited funds is never going to equal the amount banked because of the adhoc nature of what was banked.

Could you please suggest possible courses of action.

Thank you,
Bek

Jennifer replies:

Hi Bek,

In this situation there are only two things I’ve been able to do:

1. Locate a deposit book or other record of the actual detail of the bank deposits. This will enable you to record them correctly.

2. Look at the bank statement. Locate the total of the deposits for that month. Go to the “Payments to Deposit” screen and “grab” this same total of deposits, or at least as close as you can get. Make a small adjusting entry in the actual deposit screen so that this total matches exactly the total of the deposits on the bank statement. Save the transaction.

Assuming the checks and withdrawals have been entered correctly, you can now reconcile this account.

I hope this helps with banking and undeposited funds. Let me know by posting a comment below. Thanks for writing.