@qborockstar: When students ask me how to clear their undeposited funds I already know there is a deeper problem underneath the question. The question itself is the symptom. The real issue is how the money got there in the first place. 𝗨𝗻𝗱𝗲𝗽𝗼𝘀𝗶𝘁𝗲𝗱 𝗳𝘂𝗻𝗱𝘀 𝗵𝗮𝘀 𝗼𝗻𝗲 𝗷𝗼𝗯. It holds customer payments that have been received but have not yet cleared the bank. That is it. If anything else is sitting in there it is a signal that something in the recording process went wrong and the books cannot be fully trusted until it is resolved. → The only items that belong in undeposited funds are payments already made by customers that have not yet hit the bank → Anything else sitting there means transactions were recorded incorrectly and the error is compounding with every deposit that follows → Proper use means matching the deposit in the banking feed to the existing invoice payments and sales receipts already in the system → Clearing undeposited funds the wrong way fixes the number without fixing the process and the same problem comes back The banking feed is where this gets resolved correctly. When the deposit comes in from the bank it should match directly to the customer payments already recorded in QuickBooks. That match is the confirmation that the money was received, recorded, and deposited in the right sequence. When that sequence breaks the undeposited funds account becomes a catch-all for recording errors that nobody can explain at tax time. How you clear it matters as much as clearing it. Fix the number without fixing the process and the question comes back next month. Fix the process and it stops being a question entirely. Learn What You Don’t Know About QuickBooks with the new Royalwise HOT Class!
