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M
michelle104
June 17, 2020
Question

Online Quickbooks Payments matched to the invoice when downloaded from the bank are getting categorized to UNDEPOSITED FUNDS! Nothing is pointed to UFunds! Plz Help Me.

  • June 17, 2020
  • 1 reply
  • 19 views
I have received 2 payments via QBPayments and both of them show as category UNDEPOSITED FUNDS. I can't find anything in Help to tell me what to do. All my settings point to the Operating Account and the Invoices designated the income category to post to.

1 reply

J
JamesDuanTQuickBooks Team
QuickBooks Team
June 17, 2020

Let get this thing sorted out, michelle104.

 

When using QuickBooks Payments, the invoices are marked as paid after your customers send the payment.

 

In QuickBooks Online, the payment will be deposited to the Undeposited Funds or to the bank account. This depends on your Payments settings:

  1. Click the Gear icon in the upper-right corner and select Account and Settings. 
  2. Select the Payments tab and go to the Chart of Accounts section.
  3. Review where the payments and fees are deposited.
  4. Click Save and Done.

Meanwhile, your bank will receive the payments which were already deducted by the processing fees.

 

If the payments are by default deposited to the Undeposited funds, you still need to create a bank deposit that includes the processing fee. You can browse this article for the detailed steps: Record and make Bank Deposits in QuickBooks Online.

 

With that, you should be able to match it to the Banking page once the payments are cleared from your bank.

 

We'll get back to you if you have additional questions about the process. Have a great day!

 

R
Raffy_Welding
June 25, 2020

JamesDuanT, thank you for your helpful message.  I am having the same problem.  Unfortunately, I reconciled the quickbooks payments before noticing they were in "undeposited funds".  Now, I cannot change it to be "accounts receivable".  I have tried "un-reconciling" to move it to banking, so that I can change it.  When I do this, it drops all of the invoice linking in the deposit entry in the register.

 

When the quickbooks payment comes in from the bank, it links to the invoice via match.  When I then view the deposit in the register using "edit", I can see the quickbooks payment ID, the payee, and the invoice link.  I cannot figure out how to change it to "accounts receivable" and still maintain this data.

 

How can I fix this 1) to change to accounts receivable? and maintain the invoice link and qb data, and  2) to avoid having this problem in the first place?

I have already done what you said above, watched the video, and still have the problem. Thanks in advance for any help you can give me.  I am using ONLINE.

    DivinaMercy_N
    DivinaMercy_NModerator
    Moderator
    June 25, 2020

    Hi there, @Raffy_Welding.

     

    Undeposited Funds account is used to hold invoice payments and sales receipts you want to consolidate. When you have your deposit slip, you'll have to make a bank deposit in QuickBooks to combine payments in Undeposited Funds to match. 

     

    You need to deposit the amounts to your desired accounts, to fix the Undeposited Funds. Go to the Bank Deposit page. You have a customer payment entered to that account but not deposited. You'll need to find the deposit (it is in there because the transaction is already reconciled). Then, update the deposit with the customer payment and remove the line item that is in there and was reconciled.

     

    For more details, you can refer to this article: Deposit payments into the Undeposited Funds account in QuickBooks Online.

     

    Also, I've added this helpful article in case you want to review your transactions after matching them: Find, Review, and Edit Transactions in your Account Register.

     

    Should you have any other questions that I can help you with, feel free to leave a reply below. It's my pleasure to help you get back on your working track anytime. Take care always. 

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