Quickbooks undeposited funds

[Tatia]

Morning all,

silly question, im usin QB pro 2012, when pulling a BS for the 2012 year in my current assets an accoount called undeposuted funds pops up.
Ive gone to the make /recieve deposits window but there are no deposited to be deposited.
Ive tried to change the account in my chart of accounts to move each individual entry to the bank account, but it says i must delete the payment from the deposit before i can change this. there are well over 250 entries, would i have to do this each one individually?
Either way want to get rid of the undeposited funds account and avoid having this problem again next year.

Please help

[CLIVE-TRIANGLE]

1) Do the funds actually exist? I ask because they are what they say......
2) Undeposited funds in Quickbooks arise from:
2.1) debtor receipts that are allocated to that account instead of bank or whatever. Check your Receive Payments screen and allocate the receipts to your bank account in future.
2.2) Cash sales processed via Sales Receipts. If you look at the bottom of the screen you will see "Deposit to" which defaults to Undeposited Funds.
3) There are two ways to sort this:
3.1) Go Banking, Make Deposits and the list of entries to the undeposited funds account will immediately come up. Select the items that were deposited.
3.2)You can process a journal entry, payment or whatever against the account to correct it. But the real question is of course "where is the money"?

If the funds do not exist, someone has utilised them, or swiped them.

[Dave A]

Check the register for the undeposited funds account. What was the balance at the end of the day 29 Feb 2012?
You might have received a payment or more, and only deposited the funds on 1st March or later.

(In which case there's no problem to fix here)

If the undeposited funds account is not being used properly and that's the problem, then fix the problem by using it the way you should. But I don't recommend you clear and delete the account - it is a special account in terms of Quickbooks functionality.

[Tatia]

Yes Dave that seems to have been the problem that there were funds deposited after year end, so undeposited funds still at that point undeposited.
As of today, my undeposited funds are the amounts that are in fact undeposited, so the account is being used right.
My biggest problem comes now when requesting the BS as year-end Feb 2012 that whack load of undeposited funds sit under cash at hand, those were just deposited late but are in fact applicable to the 2012 year end. My customer balances are correct, it just seems the deposit dates were wrong.

When doing financials how do I explain to the CA the undeposited funds at that point and where she should allocate them or add then to the accounts receivable?
What confuses me more is that these undeposited funds are a negative amount, so with the balance of the cash at hand it changes my actual balance because this is in fact not correct.

IM reading this and thinking heavens you are not making sense... sigh... I think I might have to revert to a QuickBooks software specialist to come fix these date errors, because I don’t know where to tell the CA the undeposited funds should go when she asks me what they are doing on the balance sheet..

[Dave A]

Yes Dave that seems to have been the problem that there were funds deposited after year end, so undeposited funds still at that point undeposited.

OK - let's try to get on the same page with this one - and to do so we'd better differentiate between payments and deposits.

Were there payments received in the 2012 financial year that were only deposited into the bank account in the next financial year?

[Tatia]

Yes Dave that Is correct, so the undeposited funds relate to the 2012 tax year. They now appear on the BS as undeposited funds instead of accounts receivable.

[Dave A]

Tatia, just present it to the CA as is. Effectively "cash on hand" is "cash and other receivables", and that is probably where it will be recorded when the financial statements are drawn up.