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Intuit

How to record payments as undeposited funds

Undeposited funds are funds you have not yet deposited in your bank.

What is the Undeposited Funds account?

The Undeposited Funds account is a default account in QuickBooks Online that holds funds from payments to your company until you deposit them to your bank account.

You can think of the Undeposited Funds account as an envelope where you keep checks until you take them to the bank.

If you receive more than one check or payment in a day, you may want to group them all into a single deposit, and you should enter those transactions so that your Bank Register matches your bank's monthly statement.

Record a payment as Undeposited Funds

You can record a cash or check payment as Undeposited Funds using Receive Payment:

  1. Select the Plus icon (+) on the Toolbar.

  2. Under Customers, choose Receive Payment.

  3. Select the Customer name from the drop-down list.

  4. Enter the date you were paid in the Payment date field.

    The field displays the current date, but you can change it, if necessary.
  5. Select one of the methods from the drop-down list in the Payment method field.

  6. In the Reference Number field, enter the check number.
  7. Select Undeposited funds from the Deposit To drop-down list.

  8. Select Save and close.

The payment is recorded and ready to be deposited in your bank.