How to Delete a Deposit in QuickBooks (Desktop & Online)

Handling deposits in QuickBooks Desktop impacts financial accuracy. Wrong or duplicate deposits trigger issues. Hence, it is crucial to erase such deposits to maintain proper records.

Erasing invalid entries ensures income reports are precise and correct. It stops excess balance reporting and inconsistencies during the reconciliation process. Deleting wrong deposits minimizes reporting errors in Profit and Loss and Balance Sheets. This ensures the audit books are reliable and error-free.

In QuickBooks, deposits are categorized into two types. Deposited payments comprise individual payments recorded as bank deposits. Undeposited funds comprise smaller payments collected during the day before the bank deposit.

This guide explains how to erase deposits in QuickBooks Online and QuickBooks Desktop. Implementing the steps shared below will help to maintain precise and error-free accounting records.

What are Deposits in QuickBooks?

A deposit in QuickBooks signifies the recording of cash inflow into a business bank account. Such deposits may arrive from loans, customer payments, or investments. Recording deposits helps monitor cash flow and ensure business reports are accurate and flawless.

When a deposit is received, add it to QuickBooks. Once added, allocate it to the right account. Ensure to mark it as a deposit to display it in the bank balance. This procedure ensures financial data is correct and transparent.

See also: Clear Undeposited Funds in QuickBooks

What are the Common Reasons for Deleting Deposits in QuickBooks?

Bookkeepers often make mistakes that require erasing deposits. Here are the common reasons:

• Incorrect Batch of Checks: Additional payments are added, generating incorrect information.
• Wrong Date or Amount: Certain typing mistakes impact reports and reconciliation.
• Repeated Deposits: Automated and manual entries recorded together increase income figures.
• Deposits Recorded in the Wrong Account: Money is added to an incorrect bank account.
• Bounced Checks: Deposited checks are unsuccessful, requiring adjustment and reversal.

How to Delete a Deposit in QuickBooks Desktop

Wrong deposits trigger incorrect balances. QuickBooks Desktop provides users with options to erase or void them. Here are the steps to delete a deposit in QuickBooks Desktop:

1. Open the Check Register or Bank Register

1. Head to the Banking menu.
2. Choose the option “Use Register“.
3. It is also possible to access it from the homepage of QuickBooks Desktop.

2. Choose the Bank Account

1. Select the bank account where the wrong deposit was recorded.
2. From the drop-down, access the “Select Account” option.

3. Find the Deposit You Want to Delete

1. Open the Check Register.
2. Locate the deposit needed to remove.

Note: Checks recorded against sales receipts or invoices transfer into Undeposited Funds. Once deposited, they merge into a single transaction. When you delete a deposit, the checks move to Undeposited Funds.

4. Delete or Void the Deposit

1. Open the deposit window.
2. Head to the “Edit” menu.
3. Choose the “Delete Deposit” option. Erasing eliminates the entry properly. Voiding preserves the transaction while clearing its value.

Delete vs Void Deposit (difference, when to use)

Delete Deposit	Void Deposit
Completely removes the deposit from records.	Keeps the deposit record but sets amount to $0 for audit trail.
Best for duplicate or incorrect deposits.	Best when you want to maintain history but correct errors.
Affects reconciliation if already reconciled.	Does not break reconciliations as record stays intact.

How to Perform Bulk Deletion of Deposits in QuickBooks Desktop?

Erasing deposits in batches saves significant time. This feature is exclusive to QuickBooks Enterprise. Here are the steps to perform bulk deletion of deposits in QuickBooks Desktop:

1. Access Enterprise Tools
   • Click the Banking menu.
   • Choose the “Batch Transactions” option.
   • Select the deposits required to remove.
2. Verify Changes
   • Check chosen deposits properly and verify the removal.

How to Delete Deposits Entered without using Undeposited Funds?

Instead of Undeposited Funds, certain deposits are sent to the bank directly. Erasing these deposits needs additional steps and checks.

Here are the steps to delete deposits recorded outside undeposited funds:

1. Determine the Source
   • Access the register and locate the deposit.
2. Void or delete the particular deposit.
   • “Delete” erases the transaction.
   • Void maintains the record but shows zero value.
3. Undo the Actual Entry

In case the deposit is from a direct payment, change or erase the payment. The concerned invoice will be displayed as unpaid once more.

Note: To maintain a paper track for audit purposes, voiding is a reliable option.

Related: Void and Delete Transactions in QuickBooks

How to Delete a Deposit in QuickBooks Online?

Wrong deposits impact precision in QuickBooks Online. Such deposits can be erased from the account register directly.

Here are the steps to erase a deposit in QuickBooks Online:

1. Sign in and use the Chart of Accounts

1. Log in to QuickBooks Online.
2. Click the “Gear” icon.
3. Under the “Your Company” section, choose the “Chart of Accounts” option.

2. Go to the Accounts Register

1. Find the bank account connected to the deposit.
2. To access the transactions list, click the “View Register” option.

3. Locate and choose the Deposit

1. Scroll or look through the register.
2. Access filters like date or type to refine results.
3. Choose the deposit to open the details.

4. Erase the Deposit

1. Click the “More” option and choose the “Delete” button.
2. Verify the removal when notified.

Note: Erase the reconciliation mark or manually change the reconciliation if the deposit is reconciled. 

Best Practices for Deleting Deposits in QuickBooks

Erasing deposits modifies financial statements. Hence, take the following precautions to minimize errors:

• Take a backup of the QuickBooks company file before erasing. This safeguards the data and boosts recovery.
• Allow the Audit Trail to monitor modifications and removals. It provides transparency for inspections and audits.
• Talk to an accountant before erasing reconciled deposits. This safeguards issues with reports and reconciliation.

Common Mistakes to avoid in QuickBooks while Deleting Deposits

Erasing deposits in QuickBooks Desktop needs planning. Ensure to avoid the following repeated errors to keep precise records:

• Verify if the deposit is connected to invoices. Erasing it opens the invoices as unpaid again.
• Not taking a proper backup before removal is a big mistake. Backup saves users from the impact of errors.
• Do not mix payments with deposits. Erasing a deposit deletes every payment involved in the batch.

Troubleshooting: What If You Cannot Delete a Deposit in QuickBooks?

Sometimes, users face issues where the ‘Delete’ option is missing, greyed out, or does not work. Here are possible fixes:

• Check if the Deposit is Already Reconciled: Deleting reconciled deposits can unbalance accounts. Consider voiding instead.
• Verify User Permissions: Only Admins or users with full rights can delete deposits.
• Try switching browsers (for QuickBooks Online) or updating your QuickBooks Desktop version.
• If linked to payments, delete or unlink the payment before removing the deposit.
• Contact QuickBooks support if technical errors persist.

FAQs about Delete a Deposit in QuickBooks

Deleting deposits in QuickBooks is a crucial task. It impacts balances, invoices, and reports. In this guide, complete information on how to erase deposits in QuickBooks Online and Desktop has been shared.

Still, if there is any confusion or query, feel free to call us.

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