How to fix Undeposited Funds in QuickBooks Online

Facing the undeposited funds in QuickBooks, and want to get rid of this problem? Then read the complete article. In this article, we will help you to fix the undeposited funds issue in QuickBooks Online. Meanwhile, you can contact our experts through the toll-free number +1-818-295-3510 to get an expert solution to the problem.

What is an Undeposited Funds account?

The Undeposited funds account stores the payment made in QuickBooks until the payment is deposited in your real-life bank account. Most of the banks combine the deposited payment in a single transaction. When you get the deposit slip, you can identify the payments which are combined by your bank and you can combine them in QuickBooks too. You must keep the payments in an Undeposited funds account before you combine them in a single transaction. Then you have to collect the deposit slip and then combine the payments in a single transaction. This will help you to match your bank records with the QuickBooks records.

Procedure to put payments in an Undeposited Funds account

Let us have a look at the steps to put your payments in an Undeposited Funds account. 

Step 1: Put Payment in Undeposited Funds Account

There are three different cases in which you have to put your payment in an Undeposited funds account.

Case 1: If your QuickBooks is connected to your bank and credit card account

You should know whether your QuickBooks account is connected to your real-life bank account and credit card account or not. If you find that your QuickBooks account is connected to your real-life bank account and credit card account then you don’t have to use the Undeposited funds account and you don’t have to combine the downloaded transactions

In this case, your QuickBooks online account will automatically download all the transactions you have done. You have to just classify and categorize the transactions downloaded by your QuickBooks online account. 

Case 2: Combing Payments which are Processed with QuickBooks Payments
  • First of all you have to click on “New” .
  • Click on “Receive Payment”.
  • Open the customer dropdown box and then click on “Customer”.
  • And click on the checkbox for the invoice you are receiving payment for.
  • Then you have to open the “Deposit to” drop down box and then click on “Undeposited Funds” option.
  • And fill out all the required fields and follow the on screen steps in a proper way.
  • Click on “Save and Send” or “Save and New” or “Save and Close”.
Case 3: Payments which are Not Processed with QuickBooks Online or Payments which are Processed Outside of QuickBooks Online
  • First of all you have to click on “New” .
  • Click on “Sales receipt”.
  • Open the customer dropdown box and then click on “Customer”.
  • Then you have to open the “Deposit to” drop down box and then click on “Undeposited Funds” option.
  • Fill all the required fields in the rest of the sales receipt and follow the on screen steps in a proper way.
  • At last, click on “Save and Send” or “Save and New” or “Save and Close”.

NOTE:-  You must check the “Deposit to” field carefully to make sure that your payments are going to the right place. If the bank records the single deposit as its own deposit then you don’t have to combine it and can directly put the payment into an account in QuickBooks online without putting it in an Undeposited funds account.

Step 2: Make a Bank Deposit

Now you have to make a bank deposit. Let us have a look at the process

If you have the bank deposit slip, then you will be able to record the bank deposits and then combine the payments successfully in QuickBooks online. The bank deposit window contains all the payments of undeposited funds accounts. Now you will use the deposit slip to properly combine the payments and make bank deposits.

Step 3: Review the Undeposited Funds

Now the next step is to carefully check the undeposited fund’s account and make sure that any payment waiting to be deposited should be cleared immediately. Let us look at the steps to review or check the undeposited fund’s account

  • First of all you have to open the “Accounting” menu.
  • Click on “Charts of accounts”.
  • Then look out for the “Undeposited Funds” account in that list.
  • And click on the “View Register” option.

Final Words

We hope that now you can fix the Undeposited funds issue in QuickBooks Online easily by yourself. Just follow all the steps carefully and should keep in mind the three cases mentioned above in the article. We will recommend you to read the entire article and follow all the steps carefully without skipping a single step. You can drop a call to us if you need any help from Wizxpert through the QuickBooks experts.

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