Matching undeposited fund payments to downloaded transactions

Hi @DMichaelweaver,

@BigRedConsulting gave some great instructions for you.  Those should get you on your way!

Let us know if you run into any issues.

Thanks,

Lucas

Does this also work with QB Online?

It has a different process with QuickBooks Online, @CQ80304.

You need to delete the payment that was posted in the Undeposited Funds and link it to the open invoice. Or delete the deposit, create a bank deposit from Undeposited Funds and reconcile it manually.

To manually reconcile a transaction, here's how:

1. Go to the Gear icon and select Chart of Accounts.
2. Look for the account that affects the transaction.
3. Select View register and find the transaction you need to reconcile.
4. Under the Reconcile column, click the blank field to mark the transaction "R" (reconciled).
5. Select Save and Yes.

Here are some insightful resources to help you along the process:

• Deposit payments into the Undeposited Funds account in QuickBooks Online.
• What’s the Undeposited Funds account?

Once done, you can check the Undeposited funds in the Chart of accounts to ensure that the payments have been cleared out.
 

You're always welcome to let me know in the comment section if you need further assistance. I'd be happy to help. Take care.

Our invoices sit in undeposited funds until we receive payment. The payments are downloaded from the bank. However, we use a third party invoicing system and they take a fee from the total invoice. So, the amount of the invoice in Undeposited Funds differs from the amount we receive due to the third party fee. How do I match the deposit to the invoice and account for the fee? I have tried several ways and nothing works.

Thank you.

I can share some information about adding fees to your invoices, @donnad.

When recording service charges and processing fees, you can add the fee while you're on the bank deposit window. First, you'll have to add the transactions into the Undeposited Funds account. Then, add a bank deposit and scroll down to the Add funds to this deposit section to add the fee. 

Here's how:

1. Go to the + New button and select Bank Deposit.
2. Scroll down to the box under the Add funds to this deposit.
3. Make a line item for the fee.
4. Choose who paid the charge.
5. From the Account dropdown, choose Bank Charges.
6. Enter a negative value for the fee amount.
7. Compare the deposit amount to the bank fee.
8. Choose Save and close or Save and new are the options.

For detailed guidance on how to include bank and processing fees, refer to this article: Record and make bank deposits in QuickBooks Online.

A Deposit Detail report can be used to check your completed bank deposits. For further instructions on how to run and filter this report, see this article: Customize reports in QuickBooks Online. 

I'm always here if you need further help in recording your transactions. Keep safe and have a great rest of the day!