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Record and make bank deposits in QuickBooks Online

by Intuit•37• Updated about 19 hours 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.

Learn more about bank deposits in QuickBooks.

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.

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.
    • Select who the fee was from (for example, the bank charging you).
    • Select Bank charges from the Account â–Ľ dropdown.
    • Enter the amount fee as a negative number. For example, if the fee was GBP ÂŁ 50, enter –50.
  3. In the Received From column, enter in the name of who's charging you the fee.
  4. 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 account creation window, select Expenses as the account type and Bank Charges as the detail type.
  3. Give the account a simple name like "Bank fees."

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

Follow this link to complete the steps in product. Open this link in a new window

  1. Scroll down to the Sales and customers section.
  2. 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

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

Follow this link to complete the steps in product Open this link in a new window

  1. Find the payment you want to remove and select View/Edit in the Action column. The status should be Closed.
  2. Uncheck the checkbox for the payment you want to remove.
  3. 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:

Follow this link to complete the steps in product Open this link in a new window

  1. Find the bank account you put the deposit into and select Account history.
  2. Search for the bank deposit and select it to get more details.
  3. Select Delete.
  4. 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.

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