QuickBooks – How To Correct A Reconciled Deposit With A Customer Payment

Once a transaction is reconciled you never want to change it. One situation that comes up frequently however is when you have a deposit booked directly to income that should have been booked as a customer payment.

So now you have duplicated income (once on the invoice and once in the deposit) and you have a receivable on the books that shouldn’t be there. This means that income is over stated on the P&L and Assets are overstated on the balance sheet. This is sloppy bookkeeping and it must be corrected. The problem is that if you delete a reconciled deposit to record this transaction properly you will throw of your reconciled balance and the next time you go to reconcile your beginning balance will not match the statement. So we need a solution that allows us to fix this by essentially tricking QuickBooks into thinking that the deposit hasn’t changed. The only way to do this is to swap out the account without ever changing the amount of the deposit. To replace a deposit booked directly to income in QuickBooks with a customer payment that comes from undeposited funds it requires a few simple steps.

Nerd

Posted January 25, 2012 at 2:51 PM

So you have 2 years

worth of payments in your QuickBooks undeposited funds account? I am assuming then that you didn’t reconcile your bank account? There are a few ways of handling this. One is to get your bank statements out and record the deposits and reconcile your bank statements. It’s a bit of work but honestly that is what I would do so you have accurate bookkeeping. That still won’t get the income on your books though. Next I would run a monthly accounts receivable report and use this as a worksheet to post invoices – just a simple one line invoice for each customer and each month. Call it “Rent” and map it to your rental income account on the books. Post one invoice per tenant per month and then apply the credits. This is really the only way to get the income on the books. Alternatively you can do one invoice per tenant for the entire year and date it 12/31 but the your P&L will only work on that date.

Finally. you can sign up on my site on Accounting for Real Estate with QuickBooks the domain is http://www.RealEstateAccountingWithQuickBooks.com This site has chapters and video tutorials that will help you step by step through setting up your QuickBooks file for your rental property.

Source: nerdenterprises.com

Category: Forex

Similar articles: