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Record and make bank deposits in QuickBooks Online

by Intuit•20• Updated 2 months ago

Learn how to combine multiple transactions into a single record so QuickBooks matches your real-life bank deposits.

When you deposit money at the bank, you often deposit multiple payments from different sources at once. The bank usually records everything as a single record with one total. If you enter the same payments as separate records in QuickBooks, they may not match how your bank records the deposit.

In these cases, QuickBooks has a special way for you to combine transactions so your records match your real-life bank deposit.

Here’s how to record bank deposits in QuickBooks Online.

  1. Put transactions you need to combine into your Undeposited Funds account. 
  2. Then, use the bank deposit feature to combine them.

Learn more about bank deposits in QuickBooks.

Step 1: Put transactions into the Undeposited Funds account

If you haven’t already, put invoice payments and sales receipts you want to combine into the Undeposited Funds account. This account holds everything before you record a deposit.

Important: If you use QuickBooks Payments, it automatically processes and moves transactions into your accounts. You can also combine outside payments with these steps.

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.
  2. Select Bank deposit.
  3. From the Account ▼ 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.

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 window:

  1. Scroll down to the Add funds to this deposit section.
  2. Enter the fee as a line item.
  3. Select who the fee was from (for example, the bank charging you).
  4. Select Bank charges from the Account ▼ dropdown.
  5. Enter the amount fee as a negative number. For example, if the fee was GBP £ 50, enter –50.
  6. Review the deposit total with the bank fee.
  7. 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. Go to Transactions and select Chart of accounts (Take me there).
  2. Select New.
  3. In the Account pop-up, select Expenses from Account Type ▼ dropdown.
  4. Select Bank charges from Detail Type ▼ dropdown.
  5. Enter Name as Bank fees. 
  6. Select Save and Close. 

Note: When a PayPal connection is established, this should give you the ability to account for fees within the setup of the PayPal App. If for whatever reason, the app is experiencing downtime, or does not record the fees, the above processes should be followed to manually record them.

Next steps: Manage bank deposits

Review past bank deposits

  1. Go to Reports (Take me there).
  2. Scroll down to the Sales and customers section.
  3. Select the Deposit Detail report.

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

Remove a payment from a bank deposit

Added a payment by mistake? No problem. If you want to remove a specific payment from a deposit:

  1. Go to Sales and select All sales (Take me there).
  2. To find and open the payment you want to remove, select View/Edit. 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.

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 Transactions and 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.
  5. 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.

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