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Frequent Contributor *

Undeposited Funds account

Hi 

I am reconciling exp. bank account and want to see induvial customer payments (Manually reconcile) rather then lump sum? In the undeposited funds account are multiple deposits but not clearing out. Here is how the money was received. 1. Payments to undeposited funds. 2. Make deposit slip and take to bank. 3. Go to deposit window make deposit to exp. account. What is being done wrong. Read that making a deposit will clear account but money is still in Undeposited funds account. Should this account have nothing in it except any checks not taking to bank yet? Why are funds still in account and what steps to clear them? Also have a prior, other years, balance and or checks in this account and want to clear but do not want to change any financials, how do I clear account? I appreciate your help?

Solved
Best answer 02-12-2019

Accepted Solutions
QuickBooks Team

Re: Undeposited Funds account

Hello again, @sf22.

 

Thank you for getting back to me. I'm here to clear this up for you.

 

The purpose of creating a Bank Deposit is only to offset or to make the Undeposited Funds Account's balance as zero. Any transaction created under this account will still show. 

 

That's it. Let me know if there's anything else I can do for you. Just leave a comment for me or mention my name. Have a blissful day!

View solution in original post

16 Comments
QuickBooks Team

Re: Undeposited Funds account

Hello there, sf22.

 

Thank you for posting here in the Community and providing extra details. I can share some insights about clearing the Undeposited Funds account in QBO.

 

When making a deposit slip, you have to select the payments created. You can choose one or more payments and group them into a single deposit. This should match the transaction amounts on both your bank statement and in QuickBooks.

 

For your guide, you can use the How to Use the Undeposited Funds Account to Receive Payments article. Go to the Grouped Payments section.

 

Once done, you can start reconciling your account with ease, sf22.

 

Keep me posted if you're able to clear your account. I'm still here to help you further if you have follow up questions. Wishing you and your business continued success!

Frequent Contributor *

Re: Undeposited Funds account

Thank you Honey Lynn, 

That is what we are doing now but the bank deposit does not clear out undeposited funds. I have multiple amount in that account. I guess my question is should undeposited funds have any history in it or deposit amounts if they were deposited? Should this account be empty if no deposits sitting to be deposited to bank? Why doesn't the bank Deposit with clicking multiple checks, does not clear off undeposited funds? Still have amounts in account as + and -, I know it nets zero but should I see any of them?

Again I appreciate the help. We switch from Desktop to On-line and previous employees did not set up any bank rules. Now I have to go off of bank statement. !

SF22

 

QuickBooks Team

Re: Undeposited Funds account

Hello again, @sf22.

 

Thank you for getting back to me. I'm here to clear this up for you.

 

The purpose of creating a Bank Deposit is only to offset or to make the Undeposited Funds Account's balance as zero. Any transaction created under this account will still show. 

 

That's it. Let me know if there's anything else I can do for you. Just leave a comment for me or mention my name. Have a blissful day!

View solution in original post

Not applicable

Re: Undeposited Funds account

I have been fighting the "Undeposited Funds" issue for years. I receive a payment, I create a deposit. In the "Deposit To" field, I select the name of my bank account. The deposit appears in my register, I reconcile my statement, and still the amount is marked as "Undeposited Funds", and stays that way forever. Accounts Receivable is perpetually incorrect.  It seems that the problem is the "Deposit To" account, so how do I fix this?

QuickBooks Team

Re: Undeposited Funds account

Hi there, Kenyan6.

 

If the payments are already showing in your register, it means they're already deposited. I would suggest contacting our phone support. They can take a look at this a little further and investigate why the transactions are still showing as undeposited funds. 

 

Here's how to reach out to them:

 

  1. Click Help in the upper-right hand corner of QuickBooks.
  2. Select Contact Us.
  3. Enter a short description of your concern and click Continue.
  4. Select the option to contact us.

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

 

Not applicable

Re: Undeposited Funds account

I'm having the same problem. Googling did not help.

QuickBooks Team

Re: Undeposited Funds account

Hello there, @FL_Accountant!

 

Allow me to join into this thread and share additional information about making deposits and your undeposited funds.

 

Ideally, undeposited funds serve as your holding area when you receive payments from your customer's invoice. This allows you to gather all your sales income in one holding account.

 

Once you have enough funds from your undeposited funds, here's when a bank deposit comes in. You'll now have to transfer all your income from your undeposited funds to your bank account.

 

In addition, here's an article you can read to learn more about undeposited funds in QuickBooks Online: What’s the Undeposited Funds Account?

 

Please let me know if you have any other questions about your QuickBooks. It'll be always my pleasure to help.

Not applicable

Re: Undeposited Funds account

I have the same issue, desktop version.  When I go to make the deposit, a list of Undeposited Transactions comes up.  I then select the ones I'm depositing and make the deposit.

But I have one instance where I go in to make a deposit and there are a list of checks from September last year (that I have already deposited as above, and cleared it with a reconciliation) but is still showing up in my options of what checks are available to deposit.  How do I get rid of these?

Thank you

Sonia

QuickBooks Team

Re: Undeposited Funds account

Hey there, @SoniaP.

 

Let me route you to the best support available to address your concern.

 

I recommend contacting our QuickBooks Desktop Support so they view your account in a secure environment. Also, they have the integrated tools to help you fix to remove them from your deposit screen. 

 

Here's how you can contact them:

  1. Log in to your QuickBooks account.
  2. Press F1 on your keyboard.
  3. Click on Contact Us.

Don't hesitate to let me know if you have any other concerns.

Not applicable

Re: Undeposited Funds account

Having the same issue. It seems like everyone who is trying to help is just repeating what you are already doing. Depositing the lump of checks or what not is suppose to then take those invoices you choice to deposit for that day and clear it out of undeposited funds but its still all there. The only way it disappears is if you go into them individually and change the Deposit to but then you mess up your bank deposit cause it doesn't show up to do multiple deposits. 

QuickBooks Team

Re: Undeposited Funds account

Thanks for joining this thread, cardosoits.


If you’re using a third-party online payment, make sure that Undeposited Funds is the default account for the received funds. This is to mirror the transactions on your bank and in QuickBooks.


Once you’re ready, deposit the funds to the correct account. Changing the Deposit to location applies if invoices are paid individually and directly to the bank.


This should clear things up for you. Reach out to me if you have additional questions or concerns about QBO. Please know I’m here to answer them.

 

Not applicable

Re: Undeposited Funds account

Go under Edit

my Prefrences

scroll down to payments and select

Un select the 3rd box over to allow you to deposit directly from your receive payments screen and will allow to select the bank account (skipping undeposited funds)

 

for past transactions—you have to go to register and select the deposit and delete it (void won’t work) and then go back and receive payment again, this time selecting the bank account.

 

Without this step it will always show undeposited funds since that was the first account recorded when the payment was received. It will not change even after the payment is showing deposited in the bank account on the register. 

 

It it takes forever 

 

I am green at quickbooks so I’m not sure how this effects printing deposit slips or reconciliation.  It made ours easier since it was one entry with customer name and amount. (No splits) 

 

good luck

 

Not applicable

Re: Undeposited Funds account

I'm having this same issue: really old previously deposited/reconciled undeposited funds are showing up again in my list of undeposited funds. Did you ever find a solution?

QuickBooks Team

Re: Undeposited Funds account

Hello TinaTh,

 

Thank you for posting here in the Community. I'm here to assist you with the payments from the Undeposited Funds account.

 

Once you make a deposit, payments from Undeposited Funds will show as an option you can select on the Bank Deposit screen. To avoid duplication, please ensure combining the payments and deposits in QuickBooks.

 

Here's how you can link a deposit to an invoice:

 

  1. Click the Gear icon.
  2. Below Your Company, click Chart of Accounts.
  3. Search the account.
  4. Select the deposit, and click Edit.
  5. Change the account to Account Receivable.
  6. Click Save and close.
  7. On the left panel, go to Sales.
  8. Go to the Invoices tab.
  9. Search the open invoice, and click Receive payment.

Please see this screenshot:

 

 

After matching deposits to invoices, I also suggest deleting the prior transactions showing in Undeposited Funds.

 

Let me know if you need additional assistance with the Undeposited Funds payments. The Community is here to help.

Experienced Member

Re: Undeposited Funds account

This makes no sense since the transaction also shows in Account receiveable,  I am convinced this is a QB online problem.  The payment in my account is reconciled it shows a paid invoice and it is in the AR account but somehow still in the undeposited funds account.  There are no solutions on this thread and I think you are completely misunderstanding the problem.  As I read through the thread I think we are all having a very similar problem.

QuickBooks Team

Re: Undeposited Funds account

Hi there, @jhartenbower.

 

Based on the resolutions and feedback presented above, I recommend reaching out to our Customer Care Team, to better isolate this issue. They have the tools to investigate this behavior to determine its root cause. 

 

Please know that the Community has your back should you have any concerns with QuickBooks. Wishing you all the best!

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