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Level 1

Recording Deposits

when i send a invoice to a customer and they mail me a check,  I then enter payment received once I get to the bank I then go to record the deposit.  However everytime I do that it classifies it and "Undeposited Funds"  I want to classify it as one of my incomes?  I try to go into edit they deposit but it says I need to delete the payment but I don't see anywhere to enter the type of income I want to save it as?  I am using Desktop 

Community Champion

Recording Deposits

Income is recorded on the invoice, not on a customer Payment or the Deposit.  So you won't want these transactions to use income accounts or you'd be double counting and messing up your books.

Level 1

Recording Deposits

so leaving them as "Undeposited Funds" is fine even though they have been deposited?

QuickBooks Team

Recording Deposits

Yes, it is, @adgrayiv.


Leaving it as Undeposited Funds is fine. However, you’ll want to delete the payment you deposited to the bank to avoid the fund being overstate in your bank. Moving forward, I recommend manually receiving the invoice payment in QuickBooks Desktop (QBDT).


Once you’ve received the payment manually, you can now deposit the funds to your bank account. All payments in the Undeposited Funds account automatically show in the Bank Deposit window. Let me show you how in your QBDT software:

  1. Go to the Banking menu and select Make Deposits.
  2. In the Payments to Deposit window, select the payments you want to combine. Then select OK.
  3. In the Make Deposits window, select the account you want to put the deposit into from the Deposit to drop-down.
  4. Enter the needed information in making the deposit.
  5. When done, select Save & Close.

You can also check this article for more details about the process: Record and make bank deposits in QuickBooks Desktop.


I’ve also added this article that you can use for future guidance in effectively reconciling your accounts in QBDT: Reconcile an account in QuickBooks Desktop.


Let me know if you have other concerns about making deposits in QBDT, It's always my pleasure to help you out. Have a wonderful day ahead! 

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