Table of Contents
If a total deposit is negative, you must create a journal entry to move the funds from Undeposited Funds to the bank account, and then group the journal entry with the payments to create a $0 deposit and remove the payment from Undeposited Funds.
The following sections guide you through the steps necessary to resolve a negative deposit.
Create the journal entry #
The first step is to create a journal entry to move the funds from Undeposited Funds to the appropriate bank account.
- Select + New.
- Select Journal Entry.
- Enter the Date of the transaction.
- On the first distribution line, select Undeposited Funds from the drop-down list in the Account column.
- Enter the amount of the deposit in the Debits column.
- On the second distribution line, select the appropriate bank account from the Account column drop-down list.
- Enter the amount of the deposit In the Credits column.
- Select Save and close.
The deposit is recorded as a deduction from the bank account.
Group the Journal Entry with the payments #
Once you have created the Journal Entry, you must group it with the payments to create a $0 deposit and remove the payments from Undeposited Funds.
- Select + New.
- Under Other, select Bank Deposit.
- Select the payments and the Journal Entry you created. The total should be zero.
- Select Save and close.
The payments are grouped with the Journal Entry and removed from Undeposited Funds.
