QuickBooks Quick Tip: Making Negative Deposits

by | Apr 21, 2017

Making Negative deposits in QBO

When you process a customer Refund and credit the money back to their credit card, it’s possible that your refunds were higher than your sales that day. As a result, your merchant services daily batch total is negative.

Currently, there’s no way to create a negative deposit in QuickBooks Online. Here is the workaround:

  1. To clear the Refund out of Undeposited Funds, check off all the transactions for the day.
  2. Scroll down to the bottom of the deposit screen.
  3. In the Add Funds to This Deposit section, select the bank account where the money was pulled from, then add the amount that was withdrawn from the account (but make it positive).
  4. This zero-dollar deposit clears out (debits) Undeposited Funds and deducts the money from (credits) the bank account.

Hopefully, you won’t have many days where you refund more than you made that day in credit card sales. When you do, now you’ll know how to get rid of that pesky negative sale.

To watch me demonstrate this technique, check out my Bookkeeping’s Tricky Situations course at http://royl.ws/QBOtricks.

About Alicia Katz Pollock

With a Masters in Teaching from Tufts University, a QuickBooks®️ Online Advanced Certification and more than 30 years’ experience in the tech industry, Alicia is passionate about finding creative, practical solutions to complex and everyday tech problems. She also loves a good laugh!



  1. Lily

    I put in a deposit in quickbooks ( not taken to the bank) I need to zero it out as it was
    not meant to be put in – dO I just pull up depost – edit and then zero it out and save and close I am a beginner

    • Alicia Katz Pollock

      If a transaction is completely incorrect, you can go down to the More button in the black bar at the bottom and simply Delete it. Then replace it with the correct transaction!

  2. Lorien Prince

    In QBO, another trick is to open the Bank Deposit screen, select the negative deposit that is coming from Undeposited Funds, and at the bottom of the deposit screen, in the Add Funds to This Deposit section, add a positive amount to offset the negative deposit using the bank account from which the negative deposit was taken in the real world. This net zero deposit actually debits UF and credits the correct bank account without needing a Journal Entry. Does not work for QBDT.

    • Alicia Katz Pollock

      Hi Lorien, Thanks! You’re absolutely right. This was written in 2017, and since then I started teaching it the same way you describe. Take a look at my Bookkeeping Tricky Situations class (http://royl.ws/QBOtricks) or my FREE “Look What I Found” course at (http://royl.ws/LWIF) to watch a video demonstrating exactly the method you suggest. Check out them out…and I will update this article!

  3. Nicholas Jhonson

    The QuickBooks tips you are explaining is really good too see. Because many people don’t even know what exactly the QuickBooks is, so for them it’s really going to very helpful in the future. I want to add something with this. There are some negative points also you are explaining is really good to see.


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