Undeposited funds

Question

I have recently started receiving payments from a customer who has two businesses. I invoice them separately, as they are two separate entities. I am unfamiliar with how he manages his bookkeeping, however he pays both invoices together (under one company name).

So, I have recenlty started using Undeposited Funds to handle this for ease of reconciling with the bank account.

This has brought about an issue. I had linked one of my lesser used bank accounts in Setup as it didn't really matter - or so I thought.

When reconciling March, all of those transactions for that customer appeared in that bank account (the incorrect one). So, I linked the correct bank account (the one I use for my regular banking) to Undeposited Funds. Now ALL of my transactions are appearing in Undeposited Funds. No matter what I do (unticking Undeposited Funds), it reverts back to Undeposited Funds.

I don't know if this is making sense lol

Should I create a "dummy" bank account to link to Undeposited Funds?

Also, I have transactions in there going back YEARS. Can I get rid of them without affecting the bank/reconciliations?

lrbooks61 · Answer

HiYour idea is completely correct -&nbsp;Just clarifying a couple of things in setup for linked accounts&nbsp;&nbsp;Your account and banking has your Bank account for undeposited funds as undeposited funds&nbsp;Your sales&nbsp; has&nbsp; bank for customer receipts as the Business bank account&nbsp;So how it should work is that when you do a receive money for the sale from the customer you change the bank from the drop down list to undeposited funds and receipt each sale seperately than you should go into prepare deposits and record the two receipts together as one transaction to the bank&nbsp;I have a feeling that you have changed the customer receipts account to undeposited funds instead of the banking account&nbsp; (linked accounts) which is why everything has changed&nbsp;Hope this is useful&nbsp;Lisa

debbie_55 · Answer

Hi Lisa,Thank you so much for your response :)&nbsp;Until recently, I never needed to use Undeposited Funds, so didn't put too much thought into it when setting up the account linked to it.All I knew at the time, was that MYOB wouldn't allow me to use my Business Bank account (I can't remember why).If I link the Business bank account to Undeposited Funds now, MYOB is processing everything related to that Bank Acccount (including Spend Money) to that UF account - even when I "uncheck" UF while processing the transaction.&nbsp; This leaves me with large volumes of transactions sitting in UF waiting to be matched.&nbsp;I have created a "dummy" asset account now to link UF in Setup, as almost all of my transactions are NOT UF.&nbsp; I only have one customer who pays for both of his businesses in a combined payment.&nbsp; Once I started using this dummy account, all of those transactions disappeared - the ones waiting to be linked.Although, I am OCD and part of me wonders where they are ... all the way in the background lol&nbsp;Customer receipts account wasn't changed at all.&nbsp; They are processing to the Business account.&nbsp; I only played around with the Bank Accounts (thankfully lol).&nbsp;Thanks again for your assistance.&nbsp; Very much appreciated :)&nbsp;&nbsp;

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