I am confused and needs a workflow spelled out for me. I have a client who sent an invoice to a customer. They paid it online through Quickbooks Payments with a credit card or ACH transfer. On my end I see that the payment was paid and eventually deposited into the correct bank account with a bank receipt done automatically through Quickbook payments. However, the payment is still in Undeposited Funds? Why? I need to understand why this was happening so we can correct any Quickbook payments in the future. I right now have a huge undeposited funds account. All I am looking for is how Quickbook payments work and why after they show deposited in the bank are still in undeposited funds.
You can opt to remove the deposit you've first created and proceed with this process. To do so:
Go to Accounting, then Chart of Accounts.
Look for the bank account you're referring to, and click View Register.
Locate the specific deposit.
Click Delete, then Yes.
With these steps and resources, you can successfully record the payments in QuickBooks Online without them getting stuck in the Undeposited Funds account. Please keep in touch with me here should you have any further questions or concerns. Wishing your business continued success!
Thank you for responding. I however still have a question.
If quick book payments is automatically making a bank deposit and a bank receipt by depositing the QuickBooks payment done by CC or ACH into the correct bank account why is it still showing in undeposited funds? Is there a step that the client is missing with each QuickBooks payment and what is that?
I assume that since QuickBooks payments did everything there was nothing for the customer had to do but match it on their Bank downloads.