I'm here to help you resolve this, casscountyconser.
Usually, this happens if you have a large credit card refund that exceeds your new credit card sales on a particular day. If you have a negative deposit by your merchant services processor, you'll need to move the expected deposits from the Undeposited Funds account to the appropriate bank account via Journal Entry. Then, we'll have to group it with the payments to create a $0 deposit and remove the payment from Undeposited Funds account.
Before diving in, let's make sure that you're using the Accountants view so that you'll have the option to create a journal entry:
- Click the Gear icon.
- Choose Accounts and Settings.
- Select the Advanced tab.
- Under the User View section, click the Pencil icon.
- Select Accountant view from the drop-down menu.
Here's how to create a journal entry:
- Click the + New icon.
- Choose Journal Entry.
- Enter the Date of the transaction.
- On the first line, select Undeposited Funds from the drop-down list in the Account column.
- In the Debits column, enter the amount of the deposit.
- On the second line, select the appropriate bank account from the Account column drop-down list.
- In the Credits column, enter the amount of the deposit.
- Hit Save and close.
This process will record the deposit as a deduction from the bank.
Once done, you can follow the steps below in grouping the journal entry to the payments:
- Click the + New icon.
- Choose Bank Deposit.
- Select the payments and the Journal Entry you created (the total should be zero).
- Hit Save and close to complete the process.
If you use journal entries to record your recent transactions, you can refer to this article in printing a single journal entry or multiple entries on one report: Print a journal entry report.
You can always find me here if you have further questions or concerns about deposits. Please don't hesitate to tag me in your comments.
