To manage received payments without recording them as deposits, consider using the Undeposited Funds (UF) account. This acts as a holding account where you can accumulate and record the money received, @Bookkeeper112.
If no deposit is created, the payment will remain in your UF account. The purpose of creating a deposit is to transfer the money from the UF account to the appropriate bank account, ensuring you can reconcile your accounts correctly.
If payments are received personally and not recorded in QuickBooks, they will remain in the Accounts Receivable (AR) account. This can cause issues in your financial records in QuickBooks Desktop (QBDT). If you want to remove the AR so it isn't included in your income, you'll need to write it off.
Here's how:
- Creating a Journal Entry.
a. From the Company menu, select Make General Journal Entries.
b. In the Make General Journal Entries window, adjust the date and fill in the entry number if necessary.
c. In the next line, select the offset account and enter the amount under the Credit column. The offset account is typically an Expense account.
For customers with an underpayment
- Select the Account field and select Accounts Receivable.
- Enter the amount under the Credit column, tab to the Name column and select a Customer Name from the dropdown list.
- In the next line, select the offset account and enter the amount under the Debit column.
- Select Save & Close.
Additionally, you can explore this article to learn more about writing off: Write off customer and vendor balances.
I'm pleased to provide you with information about Accounts Receivable (AR) and Undeposited Funds in QBDT. If you have any further questions, just hit the Reply button. We're here to help you.
