How can I clear Undeposited Funds balance?

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@anhmle87 wrote:

 

For example: I have credit card sales transaction of $10. QB records $10 in revenue and $10 in Undeposited Funds. SQ sends my bank $8 and keeps $2 for SQ fees. My bank sends $8 deposit info to QB and QB applies $8 deposit against $8 sales and still shows that $2 still undeposited. Does that mean I have to manually create a journal entry for SQ fees of $2?

Thanks for your help

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Don't use a journal entry.

use make deposits and select all the $2 open invoices, note the total

at the bottom of make deposits is a place for additional deposits, select the merchant fee expense account and enter the total amount as a negative number.

save the zero dollar deposit

@anhmle87

If you're using Square, you may want to read this article for the correct setup.

Learn how to import your Square sales data into QuickBooks Online.

https://quickbooks.intuit.com/learn-support/en-us/sync-applications/sync-square-with-quickbooks-onli...

Thanks for the quick reply. So QB does not automatically create the SQ fees expense entry for me?

Hi there, anhmle87.

You'll want to manually enter them. Let me show you how to do the process.

First, we have to set up an Expense account. Here's how:

1. Go to the Hamburger icon and select the Accounting menu. 
2. Click the New button on the top-right corner.
3. In the Account dialog, create an Expense account for Bank Charges, and add the name.
4. Click Save.

When you create a Deposit transaction, you can add a line item for the Bank fee. Here's how:

1. Go to the Hamburger icon and select Bank deposit.
2. Enter the details, then add a line item for the Bank fees, make sure that it is an Expense account.
3. Enter a negative amount for the Bank fee.
4. Hit Save and close.

I also added a screenshot for your reference.

NOTE: You have to add a line item for the fees so that you can match the transaction with your bank right away during reconciliation.

For more information, check out this article: Match and categorize bank transactions in QuickBooks Online.

For future reference, I can see that this article can be handy: Learn the reconcile workflow in QuickBooks.

Let me know if need further assistance. I'd be glad to back you up. Have a good one.