cancel
Showing results for 
Search instead for 
Did you mean: 
passfrog
Level 1

Reconciling Undeposited Funds in QuickBooks Online - using for non-profit

I want to reconcile undeposited funds account using the reconcile account function.  When I go to do that, I don't see the undeposited account as an option.  I see other non-bank accounts, such as CC Receivables (Other Current Assets), Inventory (Other Current Assets), Credit Card (Credit Card).  Undeposited Funds seems to be set up correctly.  Type - Other Current Assets, Detail Type - Undeposited Funds.  There are no other undeposited funds accounts.  Can Undeposited Funds be reconciled using this method?

 

Mike Passons

Solved
Best answer April 05, 2020

Best Answers
Catherine_B
QuickBooks Team

Reconciling Undeposited Funds in QuickBooks Online - using for non-profit

We can use reports to reconcile what needs to be deposited or not, Mike.

 

We're unable to reconcile an Undeposited Funds account since it functions differently to other accounts we see in the reconciliation page. Reconciling an account is when we compare the bank statement (cleared and deposited) to what’s in QuickBooks for a specific period of time. The Undeposited Funds account holds invoice payments and sales receipt, like a drawer where we keep payments before taking (depositing) them to the bank. That's why it doesn't show up as one of the accounts to be reconciled since its isn't linked to a bank yet like checking, credit card, or saving bank accounts. 

 

To review and manually reconcile the Undeposited Funds account, we can follow these steps:

  1. Go to the Accounting menu.
  2. Select Chart of accounts.
  3. Find Undeposited Funds on the list.
  4. Select View register.

For us to reconcile the transactions that are in our Undeposited Funds account, we can deposit these payments to their corresponding bank accounts first. From there, we can reconcile the bank where we deposited the funds to. I've attached articles that will help us clearing the undeposited funds and the reconciliation workflow:

You can always get back to me if you need anything else. Take care!

View solution in original post

6 Comments 6
Catherine_B
QuickBooks Team

Reconciling Undeposited Funds in QuickBooks Online - using for non-profit

We can use reports to reconcile what needs to be deposited or not, Mike.

 

We're unable to reconcile an Undeposited Funds account since it functions differently to other accounts we see in the reconciliation page. Reconciling an account is when we compare the bank statement (cleared and deposited) to what’s in QuickBooks for a specific period of time. The Undeposited Funds account holds invoice payments and sales receipt, like a drawer where we keep payments before taking (depositing) them to the bank. That's why it doesn't show up as one of the accounts to be reconciled since its isn't linked to a bank yet like checking, credit card, or saving bank accounts. 

 

To review and manually reconcile the Undeposited Funds account, we can follow these steps:

  1. Go to the Accounting menu.
  2. Select Chart of accounts.
  3. Find Undeposited Funds on the list.
  4. Select View register.

For us to reconcile the transactions that are in our Undeposited Funds account, we can deposit these payments to their corresponding bank accounts first. From there, we can reconcile the bank where we deposited the funds to. I've attached articles that will help us clearing the undeposited funds and the reconciliation workflow:

You can always get back to me if you need anything else. Take care!

L_Chaudhry
Level 1

Reconciling Undeposited Funds in QuickBooks Online - using for non-profit

If the undeposited fund account is being used to account for a few payments, which were never deposited to the bank, how do we handle those payments?

MariaSoledadG
QuickBooks Team

Reconciling Undeposited Funds in QuickBooks Online - using for non-profit

I'm here to help you clear up things about Undeposited Funds, L_Chaudhry.

 

The Undeposited Funds account is a special temporary account that QuickBooks uses to hold payments received from invoices before you deposit them into the bank. You can handle those payments by combining the deposit or depositing them by group. 

 

Let's say you had three separate invoices that were paid all at once from a customer. Your "real life" bank that handles your checking account recognized all three payments as a single deposit. When you enter these into QuickBooks, you'd want to mimic the bank and combine the deposit into your QuickBooks checking account.

 

Please check this article for additional information: What Is the Undeposited Funds Account.

 

You'll want to categorize and match bank transactions after you download them in QuickBooks Online. 

 

Leave a comment if you need further assistance about depositing a payment. I'll always be right here if you need help. 

 

 

Josephc200
Level 1

Reconciling Undeposited Funds in QuickBooks Online - using for non-profit

If I am balancing for a restaurant that keeps all cash sales in the store and uses the cash in store “undeposited” to pay server tip outs and the rest goes to retained earnings how can I do this?

TirzahC
QuickBooks Team

Reconciling Undeposited Funds in QuickBooks Online - using for non-profit

Thanks for reaching out to us, Josephc200. I'm here to lend a hand.

 

You can simply record it as a tip. You can enable the Tip option in your sales settings, and you'll see a field when you can enter the tip amount on your sales receipt. This is won't be included in your sales tax calculation. See this article for additional information about this process: Share tips with your team.

 

Additionally, in retained earnings, when a new fiscal year starts, QuickBooks Online automatically adds the net income from the previous fiscal year. I recommend seeking expert advice from an accountant for the account used for the rest money of your restaurant and we'll be able to ensure your books are accurate.

 

For more information, I've included an article that contains a report that displays any user-created transactions affecting the Retained Earnings account figure: How to view Retained Earnings account details. 

 

Should you need further assistance recording tips and retained earnings in QuickBooks, please don't hesitate to comment below. I'm always here to help.

baffled_uk_user
Level 1

Reconciling Undeposited Funds in QuickBooks Online - using for non-profit

The problem with being unable to mark transactions in Undeposited Funds as reconciled is that it is never clear at a glance which transactions make up the balance on the account.  I am using a reasonably fresh version of the software and, to make the accounts correct at year end, I have to leave a cheque forever in Undeposited Funds with a transfer out to the bank account in the new year.  Now that would be fine if I could mark them as matched (ie reconciled, netting to nil) but i can't.  Seems crazy.

Need to get in touch?

Contact us