Quickbook payments from CC & ACH are going into Undeposited funds and yet show deposited in bank and still in undeposited funds.

Hello there, @jsanterre50.

Thank you for the very detailed information you've provided to elaborate your concern. I have some information to share about QuickBooks Payments.

QuickBooks Online automatically records deposits and fees for your QuickBooks Payments transactions. Make sure your QuickBooks Payments account is configured to match and record automatically. You may check if the appropriate accounts are selected.

Here's how:

1. Go to the Gear icon.
2. Under Your Company, select Account and Settings.
3. Choose the Payments tab.
4. In the Chart of Accounts section, select the your accounts and save. Make sure the deposit account selected is the same account received payments get deposited to. It should also be the same account where fees are deducted from in real life.

Since you're using the Downloaded Transactions feature to connect to your bank, batches will automatically be matched. This is because your payments will automatically go into the Undeposited Funds account in QuickBooks Online as soon as you process them.

Once they settle and are deposited into your checking account in real life, the Batch Deposit will automatically be recorded and a separate fee withdrawal will be automatically recorded in Fees withdrawal account.

The following article contains an in-depth insights about this matter: https://quickbooks.intuit.com/community/Payments/Deposits-FAQ/m-p/185764https://quickbooks.intuit.co....

On the other hand, once you've processed and posted a customer payment to your Merchant Services account, it should automatically flow to the assigned account in QuickBooks Desktop. You'll then be able to see this transaction in both program.

To double-check and review the payments posted in your account, I recommend contacting our QuickBooks Payments Team to further verify your payment set up and workflow from Merchant Service to QuickBooks. They also have a secure environment to pull up your account.

Please visit this link to reach out support: Which Payments product do you need help with?

With this information, you should be able to work with you QuickBooks Payments. Let me know how this goes and don't hesitate to leave a comment below if you have other questions. I'd be glad to answer. Have a great rest of your day!

Did you ever  get this to clear up for you?  I have tried every resolution suggested on the forums and QBO still shows the ACH and Credit Card payments as undeposited.  They clearly have been deposited and every angle mentioned yet does not change?

Jenn

Hello there, @jenc1990.

I've checked that you have posted another concern on this thread: https://quickbooks.intuit.com/community/Payments/No-matter-what-resolution-I-have-tried-I-am-unable-.... And this has already been addressed by my colleague.

Hope you can respond to that thread so you and my colleague can work together. Thanks!

Hi there, was this issue ever resolved for you?  I am trying to troubleshoot this exact same issue with no success!

Thanks for joining in this conversation, @ellichristina. I'm here to help ensure you're able to resolve your QuickBooks deposits concerns. 

We can manually deposit the QuickBooks payments and select the account you want to deposit the funds. Here's how: 

1. Click the +New icon, then choose Bank Deposit under Other.
2. From the Account drop-down menu, select the bank account you want to make a deposit.
3. Enter the information as necessary, then click Save and close.

Once you receive payments, QuickBooks will follow your settings and will deposit payments to the bank account of your choice moving forward. 

I've included a detailed guide of our default accounts used when creating transactions or receive payments.

For future reference, I'd recommend reviewing some of our QuickBooks Payments FAQ. It has lists of articles that will help and answer most of your questions about payments processing and managing payments account. 

Let me know if you have additional questions. We're always delighted to help. 

I can't figure this out! Please help.

So, The connected bank downloaded the payment for the invoice, there's a match to the invoice and when I add, it goes into "undeposited funds". I tried creating a new bank deposit as instructed above....this just created a duplicate when I click the invoices connected after saving. 

Please help. Can we start from the beginning.....right now, there are 3 invoices both paid via quickbook payment. Showing under "Review", 3 are listed, each with 1 record found, which is the payment received for the invoice. Where do I go with this so it can deposit into the bank and showing it deposited instead of "undeposited funds".

Thanks!

Thanks for joining us today, @flyingdogcoco1.

I'll share the steps on how you can match your payments. Since you already have transactions recorded in QuickBooks, all you have to do is to tick the Match link.

Let me guide you how.

1. Go to Banking, then Banking at the top.
2. Select the bank account you want to match the transactions.
3. From the For review section, tick the boxes that says 1 record found. See the image below.
4. Click Accept. You can also mark them one at a time and hit Match.

About the duplicate deposit, you'll want to delete them from the chart of account to correct your account. Just go to Accounting and then Chart of Account. From there open the View register link and delete the deposit you've created.

Check out this guide to learn more about matching downloaded transactions: Categorise and match online bank transactions in QuickBooks Online.

Also, you can browse this link in case you need help with other banking tasks. It has topics with articles that'll guide you along the way.

If you still have questions or concerns with bank accounts, please let me know. I'll be around for you. Take care and stay safe.

I am having the exact same problem.  Matching directly from the For Review tab is what I did.... I can't believe we'd then have to manually create a bank deposit on top of that to clear out the undeposited funds.  I'm so confused!

Great to have you joined this thread, @Heather-Starr. I'd be glad to clarify things about clearing up your undeposited funds account.

The Undeposited Funds account will hold your customer's payments until you decide to deposit them in a bank account. It serves as the default Deposit To account when you receive payments, use a payment item on an invoice, or enter a sales receipt.

If you want to know how payments get into the Undeposited Funds, see this article: Deposit payments into the Undeposited Funds account in QuickBooks Online.

That said, you can make a batch deposit for all of the payments from the Undeposited Funds to clear them out.

Additionally, I'm including this article that contains a complete reconciliation guide to help you optimize your reconciliation processes: Learn the reconcile workflow in QuickBooks. It contains troubleshooting instructions and ways to modify completed reconciliations.

Feel free to comment below if you need anything else besides managing your bank transactions. We’re always here to help you out. Have a good one!

Did this issue ever get a resolution? I'm having the same/similar issue. QB support hasn't offered much help. They either say it's working as designed, or they don't know. To be clear, the sequence of events are:

-Create and send invoice to customer

-Customer pays through QuickBooks online payments, ACH or CC

-A system created entry is made in the 'undeposited funds' for the deposit

-The deposit clears the bank account, the bank transaction shows up

-The bank transaction is automatically matched to the deposit

-The deposit remains in 'undeposited funds' However the undeposited funds balance is $0

Is this behavior working-as-designed? I would expect the transactions to not remain in 'undeposited funds'. This is quite confusing.

Glad to have you here in the Community space, Leslie.

I'll share additional details on how QuickBooks categorize customer payments.

You can choose where to record payments on your chart of accounts if you connect QuickBooks Payment to your QuickBooks Online account. Following that, the payment deposit will be deposited to the correct bank account since you've specified the account where the payment is recorded from the Account and Settings.

Check your QuickBooks bank register to ensure the deposit was properly recorded. If it is, your UF balance should be zero. You can then match this deposit to your bank transaction to prevent double income. To answer your question is yes, this work as designed.

For your reference, see the resources listed below:

• Change the deposit bank account for QuickBooks Payments
• Take and process payments in QuickBooks Online with QuickBooks Payments

Use this article as a guide if you need to learn more about managing your bank transactions: Categorize and match online bank transactions in QuickBooks Online.

I'm always here to help you if you have further questions about other processes in QuickBooks. Have a great day.

The payment account in 'Account and Settings' was set correctly to the my desired account. The deposit was recorded correctly on the bank transaction register.

Everything balances correctly, it's simply the fact that these Quickbooks payments transactions remain in 'undeposited funds'. I guess I'll take your word that that is working-as-designed. Though it is quite confusing behavior. I would expect them to be cleared from 'undeposited funds', like any other transaction is after it is deposited into the bank account.

I have the same issue here.  ACH deposit is showing up on my register as "undeposited funds."  How do I move it over to accounts receivable and get it out of "undeposited funds?"

I can help you with clearing your undeposited funds' account, @mistyeilert1. 

You can only move your ACH deposit and all other transactions from the Undeposited Funds account by depositing them into your bank account. Once done, it'll be removed from your Undeposited Funds account. 

Here's how:

1. Go to the + New and select Bank Deposit.
2. From the Account dropdown, choose the account you want to put the money into.
3. Select the checkbox for the ACH transaction.
4. Click on Save and Close or Save and New.

For further instructions on how to record bank deposits and include bank and processing fees, check out this article: Record and make bank deposits in QuickBooks Online.

from here, you can run the Deposit Detail report to review past bank deposits. Here's how to run and customize this report: Customize reports in QuickBooks Online.

Let me know if you need further help to clear your undeposited funds account. Keep safe, and have a wonderful day!

Has anyone fixed this problem?  I have read the exchanges and still have a large balance from ACH payments and credit cards sitting in undeposited funds.  It is so unclear, it's like the intuit specialists don't understand the issue or are not good at describing how to fix the issue with their software!!??

Anyone to help clear the confusion would be helpful.

thanks

Wouldn't this create a double deposit since Quickbooks has already deposited it into my account and it is just left hanging in Undeposited Funds? If I make a bank deposit, click the undeposited funds transaction (that Quickbooks already deposited into my bank automatically) and then deposit it, won't it be in there twice? 

Hi there, rysdams.

I'll share additional details about QuickBooks Payments and how Undeposited Funds works.

When you sign up for and connect your QuickBooks Payments account to QuickBooks Online, you can choose where payments should be recorded on your chart of accounts. This ensures that the payment deposit is deposited into the proper bank account.

QuickBooks handles invoice payments processed through QuickBooks Payments. You don't necessarily need to put these in Undeposited Funds (UF). However, if you need to combine payments made outside of QuickBooks Payments, you have to record a bank deposit to clear the UF account. Here's an article for more info: Deposit payments into the Undeposited Funds account in QuickBooks Online.

I've also included a resource that addresses frequently asked questions about QuickBooks Payment deposits: Common questions about payments deposits in QuickBooks Online.

If you have any further questions about other QuickBooks processes, I'm always available to assist you. Have a wonderful day.

Hi,

I'm also having trouble understanding this. I've read the entire thread and it seems like others are having the same issue, however the answer is not clear so I will try to ask again in my own way.

I've sent an invoice to a client.

They have paid the invoice via credit card through Quickbooks.

The deposit account and processing fee is all set up properly under "accounts and settings" then "payments"

The bank transaction has cleared and shows as "deposited"

I've reviewed and matched it to the deposit as Quickbooks suggests

When I run a "balance sheet" report, the "undeposited funds" says "$0.00"

So all is fine and dandy and as far as what the numbers should read, everything looks good.

The problem arises when I look at the "categorized" bank transactions, the category for this transaction is "undeposited funds" when I want the category to be "services" under income because it is no longer undeposited. It may be unrelated but it seems that this issue is also the reason my "bank transactions" are higher than my "in Quickbooks" amounts when I look at that account under "bank transactions." The reason I say this is because the account is not even a month old. All of the transactions match every transaction I have in my online bank feed. There are no errors as far as categorizing an expense as an income or vice versa. There are no duplicates. Yet the totals don't match and the Quickbooks total is much lower.

When viewing the "categorized" section after I've reviewed them, I can change any of the other categories by selecting the drop down menu with no issue. ie: "tools" can be changed to "repairs"

When I try to change the category from "undeposited funds" to "services" I get an error reading "You are trying to select a payment in this deposit which is not eligible, please change the payment's Deposit to account to be "undeposited funds" if applicable to fix."

Why?

I appreciate you sharing detailed information about your concerns, Travis. I'll shed some light on the QuickBooks balance and ensure that your payment transactions are categorized properly.

When the bank and QuickBooks balances don't match, it's due to duplicate or pending transactions that have not been matched and categorized.

Please know that the undeposited funds is an account that temporarily holds cash or checks that a business has received and is yet to deposit into its bank account. If the funds are in this account, they won't be included in the calculation of QuickBooks balance.

In addition, you'll need to change your transactions category and categorize it so your bank and QuickBooks balance are matched. For proper categorization, I recommend consulting your accountant.

To change the category, undo the categorized transaction and recategorize it in the For Review tab. If the issue occurs, I recommend contacting our customer care support.
 

Here's how you can reach them:

1. Hover to the Help menu and press the Search tab.
2. Click Contact Us.
3. Choose a specific topic or Ask about something else. Type in a short description in the box provided.
4. Select Continue, then pick the Chat or Callback option.
    

Furthermore, I'm adding some articles to guide you in reconciling your account in QuickBooks Online:

• Learn the reconciliation workflow
• Reconcile an account

That should guarantee all your transactions are accurately recorded, which ensures that your QuickBooks and bank balance matches. I'm still here and ready to help you if you need further assistance. Feel free to leave a comment below. I've got your back.

Same.  They don’t go away.

Same.  They never go away.

I'm seeing a similar problem, and I don't even use QB Payments.

1. I make a sale, my customer gives me a check.

2. I enter the check as a Sales Receipt.

3. The check clears at the bank.

4. I create a new Bank Deposit which includes the check, and I tell QBO to deposit it.

5. In the Register, the newly created deposit still shows Account as "Undeposited Funds".

This completed deposit should no longer have "Undeposited Funds" as an account.  What gives?

Can anyone help me?  I tried posting this problem as a new question, but the community pages have rejected it as a duplicate.

Thanks for sharing that screenshot of the deposit, i8t. I found your original question and it's now visible on the forum.

QuickBooks Online creates an Undeposited Funds account by default. This account acts as a temporary holding pen for payments before depositing them in the bank.

This account also comes as part of the standard setup, whether or not QuickBooks Payments is used. You can find more information about this account here:

• What’s The Undeposited Funds Account?
• Deposit Payments Into The Undeposited Funds Account In QuickBooks Online

Please note that creating a bank deposit removes the amount from the Undeposited Funds balances. However, the Undeposited Funds account will remain in the Accounts column since that's where the money was initially kept before being transferred into your bank account through the deposit.

Additional discussions about the recording deposits in QBO are provided here: Record And Make Bank Deposits In QuickBooks Online.

For further guidance and tips about troubleshooting reconciliations, check out these resources:

• Run An Undeposited Fund Report In QuickBooks Online
• Fix Issues At The End Of A Reconciliation In QuickBooks Online

Don't hesitate to ask for additional help if you have other concerns when recording sales transactions, creating bank deposits, or any other routine bookkeeping tasks in QBO. We're always standing by to assist whenever needed.