To complete this exercise, you must be in the Sample company. From your QBOA account, click on the Gear icon on the top right corner of the screen, then select Sample company.

Note that you will be logged out of your current account. If you are sure, click "Continue" to confirm. 

Now let's get started with the exercise.

First, we'll need to recreate the problem.

From the left navigation bar, hover over Transactions, then select "Bank transactions".

Click the "$408" Deposit line to expand it. *Do not click Match.*

On the black bar at the bottom, click "More", then select "Delete".

When the pop-up warning comes up, click "Yes".

With the Deposit transaction gone, QBO now has nothing to match the deposit to in the bank feed. Clients could use "Find match" to locate the correct payments for the bank deposit, but more often than not, they just click "Add" here instead.

On the $408 Uncategorized Income Deposit, click "Add".

By clicking "Add," instead of matching, all the funds remain in Undeposited Funds, causing it to be overstated. To correct this problem the right way, you will need to find the correct matches.

In a real life scenario, you would need to search though several transactions to find the added deposit. In our case, there is only the one we added in Step 8.

Deposit: Uncategorized Income 11/24/2023 $408.00

Let's take a look at the deposit that QBO created when you clicked "Add" in Step 8.

(1) The top grid contains all the payments that are currently in Undeposited Funds.

(2) None of the payments are checked because none of them are included.

(3) The bottom grid contains all deposits that are not associated with payments. This is where QBO has lumped the $408 transaction that you added in Step 8.

Our next task is to remove the lumped deposit and select the payments that equal that amount.

In the Add Funds to this Deposit section, click the trashcan icon next to $408.

Click the "checkbox" next to Amy's Bird Sanctuary and John Melton. This will total $408.

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QuickBooks

QuickBooks is a widely-used accounting software developed by Intuit, designed to simplify financial management for businesses of all sizes. It provides a user-friendly platform for tasks like invoicing, expense tracking, payroll processing, and generating financial reports. QuickBooks automates many financial processes, making it easier for businesses to monitor their financial health, prepare taxes, and manage cash flow. With its various versions and integrations, QuickBooks caters to the needs of freelancers, small businesses, and larger enterprises, offering a flexible and comprehensive solution for efficient accounting and financial management.

app.qbo.intuit.com

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Scenario: You have just started working with Craig, and you notice that he has quite a few transactions in his Undeposited Funds account. You have confirmed with Craig that he has deposited all the money he has received.

What is the correct way to clean this up?

A.4.8a Fix Undeposited Funds the Correct Way