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Experienced Member

Subsidiary Ledger in QB

Can I open subsidiary ledger account in QB?

We are a cash basis business and we get most of the payments through bank transfers and checks deposited at the bank. We get about !% of the gross through credit card payments which is withdrawn from Paypal in to the bank account. We less than half percent through cash payments which is deposited altogether at the end of the month. Single line entries are made for each of these transactions and records for the details of the payee, amount and dates are maintained separately in Excel. Now we wish to record this in to two separate subsidiary accounts - one for payments received through credit cards and other through cash. Does QB have the capacity to handle subsidiary accounts? If so, how?

1 Comment
QuickBooks Team

Re: Subsidiary Ledger in QB

Hi there, @abdmalik45,


Thanks for the time you've given sharing this with us today. I can share some information about recording customer payments on different accounts.


If you're manually recording partial or full customer payments in QuickBooks, you have the option to deposit them separately. Let me guide you on how to do that:


Step 1: Enable the Undeposited Funds Account

  1. Go to the Edit menu and select Preferences.
  2. Tap the Payments topic then go to the Company Preferences tab.
  3. Mark the Use Undeposited Funds as a default deposit to account box.
  4. Click OK.

Here's a good article to understand more about this account: Understand how the Undeposited Funds account works.


Step 2: Create a new account.

  1. Go to the Lists menu.
  2. Select Chart of Accounts.
  3. Right-click anywhere then click New.
  4. Choose Bank or Credit Card then Continue.
  5. Enter the Account Name.
  6. Click Save and Close.

Step 3: Open the Invoice then apply the payment.

  1. Go to the Customers tab then select Customer Center.
  2. Click the client name to open their profile.
  3. Double-click to open the invoice.
  4. On the invoice, click the Receive Payments icon.
  5. Select the correct invoice to pay.
  6. Click Save & New or Save & close.

Receiving the payment relieves the balance on the Accounts Receivable account.


Step 4: Deposit the payments

  1. Go to the Banking menu.
  2. Choose Make Deposits.
  3. Select the customer payment you just made then click OK.
  4. On the Make Deposits screen, edit the amount you want to deposit on your bank.
  5. The remaining balance will stay in the Undeposited Funds account which you can deposit whenever you're ready.

That should get your work completed. Please update me on how it goes or if you need further assistance on this. Have a great day!