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Record and make bank deposits in QuickBooks Online

by Intuit•39• Updated a day ago

Combine multiple transactions into one record to match your account statement. When you deposit multiple customer payments at the bank, they're grouped into one total. If you record each payment separately in QuickBooks, your records won’t match the bank. Use the bank deposit feature in QuickBooks Online to group payments and match your deposit.

Prerequisites

  1. Put transactions you need to combine into your Undeposited Funds account. 
  2. Ensure all payments to be deposited and reflected in the Undeposited Funds account in QuickBooks.
  3. Then, use the bank deposit feature to combine them.

Note: Customers can't be added to deposits in QuickBooks Ledger.

Step 1: Put transactions into the Undeposited Funds account

Before recording a deposit, make sure the invoice payments and sales receipts that you want to combine are put in the Undeposited Funds account. This account holds everything before you record a deposit.

Step 2: Combine transactions in QuickBooks with a bank deposit

Each bank deposit creates a separate record in QuickBooks. Make deposits one at a time for each of your deposit slips.

  1. Select + New or + Create.
  2. Select Bank deposit.
  3. From the Account â–Ľ dropdown, select the account you want to put the money into.
  4. Select the checkbox for each transaction you want to combine.
  5. Make sure the total of the selected transactions matches your deposit slip. Use your deposit slip as a reference.
  6. Select Save and new or Save and close.
Important: All transactions in your Undeposited Funds account appear in the bank deposit window. If there are any missing, add them to the Undeposited Funds account.

Match a deposit to an invoice or a sales receipt

When you receive bank deposits from your customers, you might want to link them to an invoice or a sales receipt. Doing this ensures accurate records and helps avoid errors when you reconcile your accounts later on.
To link a deposit to an invoice or a sales receipt, make sure:

  • There's an invoice for the customer.
  • Payment hasn't been entered and linked to the invoice.
  1. Go to All apps A bunch of numbers and letters on a tile wall., select Accounting, then select Bank transactions (Take me there).
  2. Under the Pending tab, select the bank transaction that you want to match with the invoice in the QuickBooks.
  3. Select Find match.
    Note: If you aren't able to see Find match, then select Match from Match/Categorise column.
  4. In the Find other matches page, select the checkbox for the appropriate invoice.
  5. Select Match.

Some banks add service charges and processing fees. Don't edit the original transactions in QuickBooks. Instead, add the fee while you're on the Bank Deposit page:

  1. Scroll down to the Add funds to this deposit section.
  2. Enter the fee as a line item.
    1. From the Received From â–Ľ dropdown select the customer whom you are charging the fee to.
    2. Select Bank charges from the Account â–Ľ dropdown.
    3. Enter the amount fee as a negative number. For example, if the fee was $ 50, enter –50.
  3. Select Save and new or Save and close.

Tip: If you don't have a bank charge account, here's how to create one:

  1. Select + Add new from the account dropdown.
  2. On the New account window, from the Account type â–Ľ dropdown, select Expenses.
  3. From the Detail type â–Ľ dropdown, select Bank charges.
  4. Give the account a simple name like "Bank fees."
  5. Fill out the remaining details.
  6. Select Save.

Next steps: Manage bank deposits

Review past bank deposits

  1. Go to Reports Icon image of the Reports menu. and select Standard reports (Take me there).
  2. From the Type report name here â–Ľ dropdown, enter Deposit Detail and select it.

The report lists all your completed bank deposits. Select individual deposits to get more details.

Remove a payment from a bank deposit

If you added a payment by mistake and want to remove a specific payment from a deposit:

  1. Go to All apps A bunch of numbers and letters on a tile wall., select Sales & Get Paid, then select Sales transactions (Take me there).
  2. Find the payment you want to remove and select View/Edit in the Action column.
    Note: The status should be Closed.
  3. Uncheck the checkbox for the payment you want to remove.
  4. Select Save and new or Save and close.
  5. Select Yes to confirm.
    Note: If credit is applied, select Save as a credit, then select Yes.

The payment will go back to the Undeposited Funds account. You can add it to another deposit.

Delete a bank deposit

If you need to start over and delete a bank deposit:

  1. Go to All apps A bunch of numbers and letters on a tile wall., select Accounting, then select Chart of accounts (Take me there).
  2. Find the bank account you put the deposit into and select Account history.
  3. Search for the bank deposit and select it to get more details.
  4. Select Delete, then select Yes to confirm.

All payments on the deposit go back to the Undeposited Funds account. You can start over and create a brand-new deposit.

Result

Your deposit now reflects the exact total your bank recorded. QuickBooks matches grouped payments to real-life transactions, helping you reconcile accounts with accuracy.