Undeposited funds appearing in other account

Hello there, @PaulCyberEngel.

Allow me to share some details about using undeposited funds in QuickBooks Desktop for Mac.

The Undeposited Funds is an internal "other current asses account" created by QuickBooks to hold funds until you are ready to deposit them. It serves as the default "deposit to " account when you receive payments from Invoices, use payment items on an invoice or enter a Sales Receipt.

In this case, your undeposited funds account will show in the register because before you deposit the transaction account, undeposited funds came from the register.

Also, sales receipts will not show as payments when you're using a group as undeposited and then bank deposit. If the sales receipt will not group and post directly to the bank, it will show as a receipt in the register.

Lastly, QuickBooks will not automatically create deposits, we need to make sure to select the bank correctly when we deposit the sales receipts.

I've added this article to learn more about deposit payments: Deposit payments into the Undeposited Funds account in QuickBooks.

Visit us again in the Community if you have other questions.

Yes, the undeposited funds are appearing in the register for the "Undeposited Funds" account, but they are ALSO appearing in the register for one of my bank accounts. And in the register for the bank account, they are showing as payments, meaning they are decreasing the balance of the bank accounts even though no bank transaction has been posted to Quickbooks.

Why is that? 

Thank you for getting back to us, @PaulCyberEngel. 

If the bank was connected to your QuickBooks account where this payment was deposited and then you manually add a receipt under the Undeposited Funds account, it will show to your Undeposited Funds account and the bank register itself. 

If this is the case, you can match the downloaded transaction from your bank. To make a match, QuickBooks looks at the following:

• Check numbers
• Amounts
• Dates
• Payees

It will then show as matched. Check this article for more information about this: Set up and use Online Banking (Mac). 

Let me know if you still have questions. I'm always here to assist. 

This account was never configured for online banking. And I have confirmed that these entries appear whenever I create a new sales receipt.

Why would a sales receipt marked to deposit to Undeposited Funds create a payment in a bank account?

Hello there, @PaulCyberEngel.

Let's check your Preferences and make sure that your Sales Receipts aren't set to automatically create payments to your bank account. All you have to do is go to the Edit in the top menu > Preferences > Sales & Customers. 

Please keep me updated. I'll be here to further assist you if the issue persists. Have a beautiful day.

I'm on a Mac, so Preferences is under the QuickBooks menu.

There is no Sales & Customers, but there is a Sales & Invoicing. There is nothing about Sales Receipts on that panel.

Thanks for your prompt response, @PaulCyberEngel.

Indeed, the payment that shows as Undeposited Funds (UF) on the Register is determined working as designed. 

We appreciate your understanding and encourage you moving forward to select the right account in the Deposit to field on the Sales Receipt form. This way, the UF won't show in the Register.

Our product team is gathering data around the behavior you're seeing with UF. We hope to have something for you soon.

In the meantime, you can visit this site: Little Square. QuickBooks for Mac users gather to this site to find helpful tools.

Also, I'll add this manual as your reference in using QBDT for Mac: QuickBooks Desktop Mac 2020 User's Guide.

Please let us know if you have further questions. I'll keep my notifications open. Have a good one!

It's not the fact that it shows up in the Undeposited Funds register, I expect that.

WHY is it showing up in the register for a BANK account?

Good afternoon, @PaulCyberEngel.

When you create a Sales Receipt, you'll select a bank account for the Deposit to field where you want that money to go. The Sales Receipt then shows in the Undeposited Funds first, as a holding account, then once you receive the money, another transaction shows in the Undeposited Funds account for the money to be withdrawn to balance the account to zero. This is basically like an electronic paper trail for the transaction.

If the funds are showing in the incorrect bank register, then you'll need to check the Sales Receipt in the Deposit to field.

Let me know if this answers your question. If not, you can provide me more details or a screenshot of this behavior. I'm always here to help you.

I never selected an account for this money to go into... I have only used Undeposited Funds. It appears that on Windows there's a preferences setting to tell QuickBooks what account to hold the other half of the transactions, but no one has answered the question, how do I set that in Desktop for Mac?

Hi, PaulCyberEngel.

Thanks for providing more details on this.

You'll want to go to your Company's Preferences tab to set up the specific account that holds your transactions. Let me guide you on how.

1. Click Edit on the upper menu.
2. Select Preferences.
3. Choose Payments.
4. Go to the Company Preferences tab.
5. Uncheck the Use Undeposited Funds as a default deposit to account option.
6. Click OK

Once done, you'll see an option on which account you want to deposit the transactions to.

Please check these help articles for more information about QuickBooks Desktop for Mac.

Let me know if you need anything else. I'll be right here to help.

Maria, I appreciate your answer, but your answer only works on Windows and this is a board for Desktop for Mac.

There is nor "Preferences" entry under the Edit menu. It is under the QuickBooks menu on Mac.

There is no "Payments" option on the Preferences for Mac.

A search of Preference does not yield any "Undeposited Funds" option.

So my question stands... How do I tell QuickBooks on Mac which account to put the matching part of undeposited funds?

Thanks for providing a screenshot, @PaulCyberEngel.

For now, the option to set up a specific account to automatically deposit transactions into it is unavailable in QuickBook for Mac.

To address your main concern on why the "Undeposited Funds" transaction is showing up in one of your bank accounts, I recommend reaching out to customer support. This way, they can perform a screen sharing session to trace the cause of this issue. You can reach them out by following these steps below:

1. Go to this link: https://help.quickbooks.intuit.com/en_US/contact
2. Select QuickBooks Mac Desktop.
3. Select a topic.
4. Scroll down to the bottom section and click Start a Message.

I'm always here to help if you have any other concerns or questions. Just tag my name in the comment section and I'll get back to you as soon as I can.

Hello, 

When I go to Bank deposit, what I have to do to add in dropdown menu an existing asset account (not bank account) in which I want to deposit amount from Undeposited Funds?

Thank you for posting here in the Community, @OgnjenZec. 

I'm here to help you post the bank deposit in an asset account.

In QuickBooks, when making a bank deposit, your option for the accounts is only a bank account. If you want, you can create a Journal Entry.

Here's how:

1. Select Make General Journal Entries from the Company menu.
2. To write an entry in your journal, complete the fields. When you're finished, make sure your debits and credits balance.
3. You can choose Save or Save & Close.

I would also recommend consulting an accountant to guide you in creating a Journal Entry to avoid messing up your books in QuickBooks Desktop.

I've added this article to learn more about deposit payments: Deposit payments into the Undeposited Funds account in QuickBooks. 

If you have any more questions or concerns, I'm always available to help. Simply mention me in the comments box, and I will respond as soon as I can.

Hello,

I am trying to record a summary of daily sales into sales receipts each day. Then I make the deposit for each day. The problem is that the sales receipt is showing up in my BANK account as a debit, and the deposit is showing up as a credit in my bank account, so the sales receipt is cancelling out my deposit in my register. I've read this whole thread (I use QB Desktop 2021). I went into "EDIT" "Preferences" "My Company" and deselected the auto option to "Use Undeposited Funds as a default deposit to Account". The debits from the sales receipts are STILL showing up in my bank account register. What can I do?

Thank you!

Jamaica