cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Created with Sketch. Join our Small Business Relief Initiative. Support a GoFundMe today.
Level 2

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

Best Answers
Highlighted
QuickBooks Team

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

33 Comments
Highlighted
QuickBooks Team

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!

Highlighted
Level 2

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

 

Highlighted
QuickBooks Team

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

Highlighted
Level 1

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?

Highlighted
QuickBooks Team

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.

 

Highlighted
Level 1

Undeposited Funds account

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

Highlighted
Moderator

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.

Highlighted
Level 1

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

Highlighted
QuickBooks Team

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.

Highlighted
Level 1

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. 

Highlighted
QuickBooks Team

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.

 

Highlighted
Level 1

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

 

Highlighted
Level 1

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?

Highlighted
Moderator

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.

Highlighted
Level 1

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.

Highlighted
QuickBooks Team

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!

Highlighted
Level 1

Undeposited Funds account

We are also having the same problem as this. Everything was cleared and balanced in quickbooks desktop, now we migrated over to quickbooks online, all balances and everything match up, but the undeposited funds account is full of transactions that are not cleared.

Highlighted
QuickBooks Team

Undeposited Funds account

Hi MattPM,

 

I'd like to add some insights about the transactions in your undeposited funds.

 

Since everything is cleared and matches up in your QuickBooks Online account, you can make a lump sum deposit to create a zero net deposit. However, I suggest consulting with an accountant before doing this.

 

Here's how to do it:

  1. Go to +New.
  2. Click Bank Deposit.
  3. Enter your income account and a minus amount of the total deposit.
  4. Click Save and close.

I've got this article about getting started with QuickBooks Online for additional reference.

 

Please let us know anytime if you have other concerns. We're always here to help.

Highlighted
Level 1

Undeposited Funds account

Hello. I have a few questions on this as well. :) 

 

1. To confirm, once a reconciliation is completed and current, the balance w/in Undeposited Funds should be zero?

2. The receipts, however, continue to show up within this undeposited account? They do not "migrate" to the existing bank account?  Meaning, would I see the the transactions appear w/in our banking register vs this undeposited funds register?

3. Does all the detail, though, properly associate with the proper account? I.E.-5 people paid cash for donations, so I went through the process of undeposited funds to make a physical bank deposit, etc. Does the 5 cash transactions total properly show up, then, within the banking chart of account for "donations" while continuing to show up in the undeposited funds register?

3. We, too, have an issue of pages and pages of line items of receipts from the past (dating back to 2008). By no means did we have this many existing old transactions when we used the desktop version, but since our migration to online, they have now appeared within the account. 

4. Finally, is there a way to do batch  physical deposits of cash and checks to our banking account without using undeposited funds, or is this the the only way that QuickBooks allows? For the reasons mentioned above, we would just as well do away with the undeposited funds having this 'repository' of transactions. Thanks!

Highlighted
Moderator

Undeposited Funds account

Let's answer your questions one at a time, pccsing.

 

For your first question, it is not necessary to zero out the Undeposited Funds account after the reconciliation. Unless, the payments should be deposited to the bank register and be part of another reconciliation.

 

For the second one, the receipts will continue to show in the Undeposited funds account if you will not deposit them to your bank register. Hence, it is necessary to create bank deposits. You can use this article for reference: Record and make Bank Deposits in QuickBooks Online.

If you're using the Online Banking, you can match the banking transactions to the payments under the Undeposited Funds account. Thus, you're not required to create a bank deposit.

After the matching the transactions, they'll now appear in your bank register.

 

For the third one, the data import imported in your QuickBooks Online account depends on what you have in your QuickBooks Desktop file. Hence, we cannot tell the exact individual data that are converted as you go along with the migration process. However, we have a list of transaction types and reports that are converted: What to expect when you switch from QuickBooks Desktop to QuickBooks Online.

 

Lastly, yes, we can do a batch deposit without using the Undeposited Funds account. Before that, I'll explain what exactly is happening when you use the Undeposited Funds account.

When you create a transaction and select Undeposited Funds accounts in the Deposit to field, they will appear under the Select the payments included in this deposit section of the the Bank Deposit page.

For you to create a batch deposit without using the Undeposited Funds account, you can go directly to the Add funds to this deposit section in the Bank Deposit page. Then, you can enter the deposit details from there.

 

If you don't want to use the Undeposited Funds account, you can select the bank account in the Deposit to field when creating a transaction. This will directly affect your bank register. Thus, you don't need to create a bank deposit.

 

These are the processes within QuickBooks Online. I'd also recommend speaking with your accountant to know what would be the best course of action to take. They might have a simpler way of doing things.

 

I'd be glad to here more from you if you have clarifications about this. Have a great day!

Highlighted
Level 1

Undeposited Funds account

Thank you.

I still have a few questions to your responses, however:

 1. I'm not looking to zero out the founds after the reconciliation. I'm asking if there should be a balance at all in undeposited funds after the reconciliations have been done. Currently, we have (for example) a $500 balance in our undeposited funds. We need to reconcile the past month or so. When that happens, will we then have a zero balance?

2.  This is a bit confusing to me. We have receipts that show up in our undeposited funds for months that have since been reconciled. This was using the process you outlined creating a batch deposit from undeposited fund entries, depositing them to our bank account (physically after making a deposit in QBO). Why? 

3. So is there a chance those old line items showing up in the undeposited funds pre-migration are simply a glitch of how the file was imported from desktop to online?

4. Thank you. We might try this then.

Highlighted
Level 1

Undeposited Funds account

And also, to now follow up to your suggestion to do batch deposits this way (and bypass the undeposited funds): to the best as what I can see, however, this will still leave out the imperative data that we capture within our receipt transactions. The columns within bottom of the deposit screen leave out important data for us including the "product/service" field that is within a receipt (amongst others).

So, there is no way to capture that data as we can currently do by creating receipts for people (which then gets mailed, etc.) if we opt to manual do line entries at the bottom of the deposit page in order to not use the undeposited funds account? 

 

Highlighted
QuickBooks Team

Undeposited Funds account

Thanks for coming back to this thread, pccsing.

 

For your first question, the reconciliation process won't affect the amount in the undeposited funds. Only the bank and credit card account are affected in the reconciliation process. The Undeposited Funds serves as a container to the invoice payments and sales receipts you want to combine. You'll have to create a bank deposit from these transactions to match your bank statements exactly.

 

For your second question, we can compare the Balance Sheet between the products. It could be that the amounts in the banks are different. We'll have to create a bank deposit for these amounts to match your bank records since there are times that unexpected results happen during migration.

 

For the third one, yes, there is a chance. It could be that while you're migrating the data, there are undeposited transactions in your QuickBooks Desktop that need to be deposited in the bank account that's why the old items are showing up.

 

Lastly, we have two options in depositing (bypassing) the undeposited funds. We can either create a bank deposit to group the payments together into a single bank deposit record or you can manually locate the transactions in the undeposited funds. Then, change the Deposit to field to a bank account. This will be directly deposited to your bank register. Thus, you don't have to create a bank deposit.

 

I would also suggest reaching out to your accountant. This way, you'll be guided in doing these tasks.

 

Feel comfortable to leave a comment below if you have any other concerns or further questions. I'll keep an eye out on your response.

 

 

 

 

 

 

Highlighted
Level 1

Undeposited Funds account

Thank you. I still have a few more comments/responses I need clarification on1:

1. I understand that you're saying the reconciliation won't impact the amount in the Undeposited Funds. I wasn't sure if this would be the case since we *do* have a balance in there now and there is nothing else (current) that needs to be deposited. But after looking at what you wrote and then comparing what we still can "deposit" (dating from 2018 and prior) the amounts match up. Those seem to be related to the issue of the import process and now some residual transactions are still showing up as undeposited.  So, now it's an issue of getting those old transactions taken care of. 

 

2. As it relates to bypassing the undeposited funds. The first option is the one you explained originally, correct? Making a bank deposit by entering in the fields directly on the deposit screen? However, that will then not allow me to enter in what I need to capture via receipts/invoices, correct? The second option you mention makes sense, however-how will that allow me to create a batch deposit to print via Quickbooks and physically take to the bank? I don't want to do single deposits of, say, 25 transactions at a time and handwrite a deposit slip. 

Need to get in touch?

Contact us