Recording a deposit for a check that was exchanged for cash

Hi there, @phyc278. I'm here to help you handle this deposit in QuickBooks Online.

You may enter a journal entry to record the deposit and match it with the downloaded transaction. However, I still recommend reaching out to your accountant to ensure the accuracy of your books. If you don't have one, you can visit our ProAdvisor website to run a search. 

Here's how to enter the journal entry:

1. Go to the +New icon and select Journal entry.
2. In the first line, select the bank account the check was deposited into and enter $40 under Debits.
3. In the second line, select Undeposited Funds and enter the same amount under Credits.
4. Select Save and close.

Once done, match it with the downloaded entry in your bank feeds.

Feel free to visit the Community again if you have further concerns. We're always here to help. Take care always!

Why does the Bank Deposit form not allow me to just add this check to a deposit?  I've tried recording the check in the "Add other funds to this deposit" section, but it will not allow me to use Undeposited Funds as the Account field.  The error says it must be a Bank account, yet Undeposited Funds is included in the Account drop down selection and Undeposited Funds seem to me to be the appropriate account.