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

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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.

This video shows you how to correct this problem without ruining the reconciled balance!

 

About Nerd

I started Nerd Enterprises, Inc. in 2003 and continue to work with individuals and companies to cure their financial headaches. Writing, Blogging, Social Media and generally building communities around these areas as well as technology has become another passion of mine.