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Deposit multiple checks - how to split up one big deposit between multiple customers

I recently took two checks, each from different customers to the bank and deposited them.  Each check was for $500 so the total deposit was $1000.


In quickbooks, I went to the two $500 invoices and marked them both as paid by check, and entered the check numbers as I normally do.

The problem is that in my downloaded transactions list, it shows a bank deposit of $1000 and I can't figure out how to split that up.


Thanks!

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Best answer 12-10-2018

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"when you say not to post payments directly to the regist...

"when you say not to post payments directly to the register, do you mean going to the customer invoice and clicking on the "payment" button at the top?"


This step is Exactly Correct. You are fine.


"...  at the bottom, there is a drop down box which defaults to "deposit to PNC business checking" which I always use.  The other option is to "deposit with undeposited funds".  Are you suggesting I do the same thing I've been doing with the exception of changing the option in the drop down box?'


YES. UF is a Holding Account, that allows you to:


Enter payments for the date of receipt, even if the banking will happen on a different date

and

Batch your total deposit, comprised of individual entries, so that you now have ONE entry in the bank register, that matches the actual dated deposit that happened in the banking and is seen on your statement.


It helps to use a method in the bookkeeping that matches what happens in reality.


So, if you accept Electronic payments, which hit the bank account individually, that is when you select Deposit to Checking. But, if you are processing a bunch of individual payments that will comprise a larger Total deposit for a date, then select Group With Undeposited Funds. That is why UF exists.


Then, you Make Deposit and select the specific entries that are part of the Batch.

View solution in original post

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Highlighted
Established Community Backer ***

"when you say not to post payments directly to the regist...

"when you say not to post payments directly to the register, do you mean going to the customer invoice and clicking on the "payment" button at the top?"


This step is Exactly Correct. You are fine.


"...  at the bottom, there is a drop down box which defaults to "deposit to PNC business checking" which I always use.  The other option is to "deposit with undeposited funds".  Are you suggesting I do the same thing I've been doing with the exception of changing the option in the drop down box?'


YES. UF is a Holding Account, that allows you to:


Enter payments for the date of receipt, even if the banking will happen on a different date

and

Batch your total deposit, comprised of individual entries, so that you now have ONE entry in the bank register, that matches the actual dated deposit that happened in the banking and is seen on your statement.


It helps to use a method in the bookkeeping that matches what happens in reality.


So, if you accept Electronic payments, which hit the bank account individually, that is when you select Deposit to Checking. But, if you are processing a bunch of individual payments that will comprise a larger Total deposit for a date, then select Group With Undeposited Funds. That is why UF exists.


Then, you Make Deposit and select the specific entries that are part of the Batch.

View solution in original post

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Thanks!

Thanks!
Established Community Backer ***

You can make your bookkeeping match the download. You s...

You can make your bookkeeping match the download.


You should NOT be posting those customer payments directly to the bank register; make sure your data flow is using Undeposited Funds, instead, as the Holding account. Once you are ready, create a Deposit, and you select from all the entries in UF that you are grouping into one TOTAL deposit for that date.


Now your banking data in QB has the One Total, and the online banking will MATCH to that one entry.

Not applicable

Ok - when you say not to post payments directly to the re...

Ok - when you say not to post payments directly to the register, do you mean going to the customer invoice and clicking on the "payment" button at the top?  That's what I've been doing.  I open a customer invoice, click on "payment", then it takes me to the payments module where I enter the payment amount, payment method, etc...  at the bottom, there is a drop down box which defaults to "deposit to PNC business checking" which I always use.  The other option is to "deposit with undeposited funds".  Are you suggesting I do the same thing I've been doing with the exception of changing the option in the drop down box?
Not applicable

Hello, I just had the same issue as you and found these o...

Hello,

I just had the same issue as you and found these other answers confusing but figured it out. In the banking section it will show the deposit. I am used to using split when anything in that section has multiple lines involved.However, that doesn't bring up the list of payments made which means that's not the correct method.

What you have to do is switch the top left option from Add or Transfer (whichever the system default is set as) to Match. That will bring up the window with your undeposited funds list and select the likely options that match the total being deposited. You may have to adjust which payments were made from that list if you have more transactions in your undeposited funds list than the check total. 

Hope that helps. At least that's how it's done in the Quickbooks online version.

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Great answer!! worked for me after several failed attempt...

Great answer!! worked for me after several failed attempts adding the split, I changed it to Match and it gave me the option to split inside the match menu. I can't stand when checks are grouped into a single deposit, but this makes it easy. Thanks
Established Community Backer ***

You can't, make your deposits in QB as they happen in rea...

You can't, make your deposits in QB as they happen in reality if you want you downloaded transactions to match, or disregard the downloaded transaction.

Established Community Backer ***

Glad to help.

Glad to help.

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Re: "when you say not to post payments directly to the regist...

I have a similar problem but in case a single cash deposit is split into two (or sometimes more) separate transactions whenever the bank's cash counter jams (which is often!) I'm depositing a week's worth of cash receipts which are recorded in seven separate sales receipts going to the UF account. (We're a restaurant so we use sales receipts instead of invoices.) No combination of the seven (whole) receipts equal the two deposits individually and I don't see a way to split a sales receipt among multiple bank deposits. How would I match the deposits to the sales receipts in this case?

QuickBooks Team

Re: Deposit multiple checks - how to split up one big deposit between multiple customers

Hi B1RD67,

 

In creating a Sales Receipt, you'll have the option to choose a bank where you can deposit the payment directly. This way, you can match the deposits to your Sales Receipts.

Just make sure to unchecked the Use Undeposited Funds as a default deposit account from the settings.

 

To do it:

  1. Click Edit.
  2. Click Preferences.
  3. Click Payments.
  4. Click Company Preferences.
  5. Uncheck the Use Undeposited Funds as a default deposited to account box.

Afterward, you can match the Bank Feed transactions.

 

Please leave a comment below if you have other questions.

Super Explorer *

Re: "when you say not to post payments directly to the regist...

Not sure if this will help but a generic approach to handling the kind of thing you describe -- and not only deposits, but payments too, where you have, say, multiple payments going out as a single combined ACH -- is to use a "clearing" account. Undeposited Funds is really just one example of such a clearing account, made special only by QuickBooks knowing to use it for a specific set of circumstances.

 

But for the general case, we have created another account of type Bank, whose sole purpose is to act as a "buffer" between the register corresponding to our real bank account, and the internal accounts such as A/R, A/P and so on. So in your case, you would create your two deposits as transactions between the actual bank and the clearing account. So your bank register matches your actual bank account exactly. And then  you can post the seven sales transactions between A/R (or wherever) and the clearing account. Another example we often use it for is in our multi currency environment where currency exchange rounding errors can often occur because QuickBooks doesn't have enough precision in its currency arithmetic. We often have to artificially chop an FX transaction into a couple of parts, and so rather than do that in the foreign currency bank account register, we hide away the mess in a clearing account. 

 

So a clearing account is really just a form of suspense account, but with a suspense account you may have a non-zero balance live there for some time, usually until you figure out how to "unsuspend" the relevant transactions. That is in contrast with the clearing account where as soon as you post a transaction that creates a balance of some sort, you are going to immediately post the "other side" transactions to clear out that balance. So a clearing account should always have a zero balance (well, except for the few seconds it takes you to put in the other side!) 

 

One final point. Very often, you will be posting in and out of clearing accounts using journal entries. QuickBooks occasionally has restrictions such that some transactions that are permissible simply cannot be done. So to use a clearing account effectively, you'd have to be comfortable journaling things. It's not hard, but can be a bit scary at first if you've never done it before.

 

Not applicable

Re: Hello, I just had the same issue as you and found these o...

Hello - thanks for this, but I don't see an option to switch the 'Add' link to 'Match'. 

 

Can you explain this in more detail?

 

Thanks!

QuickBooks Team

Re: Hello, I just had the same issue as you and found these o...

Thank you for joining into this thread, @MichaelAssad!

 

You can add more details to your downloaded transactions by switching to Add, Find match, or Transfer. I'm here to help you accomplish this.

 

First, if you are using QuickBooks Online, Add allows you to add a Payee, a Category, a Billable customer, a Class or Location on your downloaded banking transaction.Capture07.PNG

 

Secondly, Find match let QuickBooks find any of your existing transaction with the exact same amount. Then, then you can match them easily.Capture08.PNG

 

In addition, Transfer allows you to choose a new account for your downloaded transactions.Capture09.PNG

 

Lastly, here's an article you can read to learn more about managing and categorizing your downloaded transactions: Add and Match Downloaded Banking Transactions.

 

However, if you are using QuickBooks Desktop, you may visit this article as your guide in handling your downloaded banking transactions: Add and match Bank Feed transactions in QuickBooks Desktop.

 

It'll be always my pleasure to help if you have any other questions. I'm always around here ready to help.

Established Community Backer ***

Re: "when you say not to post payments directly to the regist...


@B1RD67 wrote:

I have a similar problem but in case a single cash deposit is split into two (or sometimes more) separate transactions whenever the bank's cash counter jams (which is often!) I'm depositing a week's worth of cash receipts which are recorded in seven separate sales receipts going to the UF account. (We're a restaurant so we use sales receipts instead of invoices.) No combination of the seven (whole) receipts equal the two deposits individually and I don't see a way to split a sales receipt among multiple bank deposits. How would I match the deposits to the sales receipts in this case?


When you create a deposit in any version of quickbooks there is a cash back option. So when a deposit comes up short of your combined receipts post the difference back to cash on hand. If the difference is found and included in the next deposit add the money back in as a line item

Community Contributor *

Re: Deposit multiple checks - how to split up one big deposit between multiple customers

I received multiple monies on different dates into my bank account yet I accidentally entered them as 1 deposit. How can I correct this? 

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