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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

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Best answer April 05, 2020

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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

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Highlighted
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

Highlighted
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?

Highlighted
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. 

 

 

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