undeposited funds when using qb payments

Hello there, kblonder . I know why your undeposited funds weren't able to link to your invoice. 

The reason you're unable to link your invoice with your payment is that the payment made by the customer to you goes to the undeposited funds. This means it will not match since the invoice belongs to the Accounts Receivable (A/R). To link the payment to your invoice entry, you'll need to change the account type of the payment. Thus, ensure that the account type is in A/R. Afterward, you can proceed to accept your payments and have them matched in your invoice.

However, since you're using QuickBooks Payments, you'll need to create a bank deposit and link it to the downloaded transaction on the Banking page. This is because the transactions were assigned automatically to Undeposited Funds. By matching them, you can now put them in the register.

Here's how: 

Step 1: Create a bank deposit

1. Go to the +New icon and select the Bank Deposit option.
2. In the Account dropdown, choose an account you'd like to store your funds. 
3. Tick the transactions that have the same information for it to matched. 
4. Ensure that you're recording the right information.
5. Once done, click Save and close. 

Step 2: Match the created bank deposit to the downloaded transaction

1. Go to the Transaction menu located at the left navigation panel and choose Bank Transactions. 
2. Choose a bank. 
3. Under the For Review tab, find the specific transactions. 
4. Check if the details are correct and press Match. 

Furthermore, you can also email/print, personalize, and add specific details to your sales forms: 

• Customize invoices, estimates, and sales receipts in QuickBooks Online. 
• Email or print multiple sales forms in QuickBooks Online

I'm here to help you further if you'd like to ask further questions regarding receiving payment. I'll be glad to help you in any way I can. Stay safe. 

Hi,

THis doesn't work. When I try to change the undeposited funds drop down the choices are

+add new

My checking acct

Undeposited funds

inventory asset

uncategorized asset

I can't add in A/R.

For some reason in the Asset register the payment type did change to Accounts Receivable, BUT when I review it in my check register for my checking acct it still says undeposited funds. 

Hi, Karen. Thank you for providing us with an update after following the steps provided by my colleague above.

 I would like to add some clarifications regarding the payments that are directed to the Undeposited Funds account.

If you are using QuickBooks Payments, the Undeposited Funds account is automatically assigned as the default holding account for merchant services transactions. To put the funds in the register and balance out the Undeposited Funds account, you will need to create a bank deposit and match it with the downloaded transaction on the Banking page.

To create a bank deposit, here's how:

1. In the left menu, select + New.
2. Choose Bank Deposit.
3. From the Account ▼ dropdown, choose the account you want to put the money into.
4. Select the checkbox for each transaction you want to combine.
5. Make sure the total of the selected transactions matches your deposit slip. Use your deposit slip as a reference.
6. Select Save and close or Save and new.

After creating the bank deposit, you can match it with the downloaded transaction by following these steps:

1. In the left menu, click Banking or Bank transactions.
2. Select the bank where your customer's payment has been deposited.
3. Locate the transaction with the correct details.
4. Click the transaction and verify the details.
5. Choose the Match button.

To ensure hassle-free reconciliation of your account in the future, you may refer to our article on the best practices for the reconciliation workflow in QuickBooks. It also guides how to overcome challenges during the reconciliation process.

Please don't hesitate to reach out if you have any further questions about your customer's payments. I'm always here to help.