Hello. We are a Faith-based company and our entire budget is funded from contributions from churches in our association. We have Quickbooks Desktop Pro 2019. I made my first deposit using Receive Payments. When I review the deposit in the register, it shows the account the deposit is coming from is Undeposited Funds. Is that correct? Is Receive Payments the best method with which to enter contributions (no invoices) for deposit?
I appreciate the time you've given checking this with our forums. I can share some insights on how to record your contributions correctly in QuickBooks Desktop.
Using the Receive Payment option without an invoice creates a positive A/R balance or credit for that donor or customer. To account the contribution correctly, you'll need to add an invoice first before receiving payments. Note: Before you start, please make sure the Donors or Members are added in the Customer Center.
Here's how to record donation as an Invoice
Select the Customers menu on the Toolbar.
Choose Create Invoices.
Key in the donor's name in the Customer: Job field.
Complete the invoice details then select Save & Close.
To receive payment:
Select the Customers menuthen choose Receive Payments.
Add the donor in the Receive From drop-down.
Choose an account in the Deposit To field.
Mark the invoice or donation received.
Select Save & close.
If you don't have the Deposit To field on your transactions, it's possible that the Undeposited Funds is your default deposit account. To turn off this preference, follow the steps below:
Tap the Edit menu.
Choose Preferences then click Payments.
Go to the Company Preferences.
Uncheck the Use Undeposited Funds as a default deposit to account box.
You can also use the following method:
Record donation as a Sales Receipt
Click the Customers tab and select choose Enter Sales Receipt.
Choose the account you want to deposit the contribution from the Deposit To drop-down.
Enter the donation details, then select Save & Close.
Record donation as a Bank Deposit
Click the Banking menu.
Choose Make Deposits.
In the Deposit To field, choose the account you want to deposit the contribution.
In the Received From column, enter the donor name.
Fill out the Deposit details.
Select Save & Close or Save & new.
That should get you pointed in the right direction, @tcba2016. Please update me if you have any questions with the steps or if you encounter any issues along the way. I'm here to lend you a hand. Have a great day!