Learn how to put payments into the Undeposited Funds account in QuickBooks Desktop.
The Undeposited Funds account holds customer payments in QuickBooks until you deposit them at your real-life bank. Once you have your deposit slip, you can combine these payments into a single record so QuickBooks matches your bank records.
Here’s how to put payments into your Undeposited Funds account before you combine them.
Step 1: Put payments into the Undeposited Funds account
Invoice payments you process outside of QuickBooks:
When you follow the workflow to receive payment for an invoice, QuickBooks automatically puts them into Undeposited Funds. Move onto Step 2 and deposit the payments.
Sales receipts for payments you process outside of QuickBooks:
By default, QuickBooks puts sales receipt payments into the Undeposited Funds account. All you have to do is create a sales receipt and QuickBooks handles the rest.
If you'd rather select which account you put payments into:
- Go to the Edit menu and then select Preferences.
- Select Payments from the list. Then go to the Company Preferences tab.
- Select and uncheck the Use Undeposited Funds as a default deposit to account checkbox.
- Select OK.
Now you can select an Undeposited Funds or another account each time you create a sales receipt.
- On the Homepage, select Create Sales Receipt.
- Select the customer from the Customer drop-down menu.
- From the Deposit to drop-down, select Undeposited Funds.
- Fill out the rest of the form.
- Select Save & Close or Save & New.
Step 2: Make a bank deposit
With your deposit slip in hand, you can record a bank deposit and combine the payments in QuickBooks. All payments in the Undeposited Funds account automatically appear in the Bank Deposit window.
Next Steps: Review your Undeposited Funds account
It’s good to periodically check your Undeposited Funds account and clear out any payments waiting to be moved.
- From the Lists menu, select Chart of Accounts.
- Right-click Undeposited Funds and select QuickReport: Undeposited Funds.
- From the Dates drop-down menu, select All.
- Select Customize Report.
- Select to the Filters tab. Scroll down the Filter list and select Cleared.
- In the Cleared section, select No. Then select OK.
The report lists any transactions still in the Undeposited Funds account. To add these payments to a deposit, follow "Step 2: Make a bank deposit."