QuickBooks will not allow me to directly debit "Cash" and credit "Undeposited Funds" (DIT) at the beginning of a month to reverse out prior months entries. The error message that I am getting is: "Only QuickBooks can make deposits from "undeposited funds". Undeposited funds is strictly an internal account where QB holds funds until you are ready to deposit them."
At the end of the month, prepare a JE to Debit cash and Credit Undeposited Funds.
On the first day of the next month, reverse the prior month JE.
Then go into Make Deposits, and the when the Payments to Deposit screen comes up, you should see both JE's...the amount should be the same, one a positive, one a negative. Check off both of these JE's, click ok, and then make the zero deposit.
These steps do work, so let us know if you have further difficulty.
