Bank Deposits and Undeposited Funds

Welcome to the Community space, casual.

I am here to share some insights about your bank deposits and undeposited funds in QuickBooks Online (QBO).

First, since you mentioned that you can't change the mapping of your accounts, I suggest contacting your POS provider to correct the mapping.

Also, once the sales receipt was auto-created, you need to make sure that it was posted in the undeposited funds to create a bank deposit to move the funds from Undeposited funds to the correct bank account. After that, you can match the downloaded deposit and the one you created.

Furthermore, I am adding this helpful article as your reference in matching your online bank transactions in QuickBooks Online: Match online bank transactions in QuickBooks Online.

Please don't hesitate to return to this post if you have other concerns about bank deposits and undeposited funds in QuickBooks Online. I'll be here to lend a hand. Have a good one!

Thank you so much for response. Yeah the first step that I did was contact the POS and see if I could change the mapping and they said no. So I'm stuck with mapping that I have right now.

It sounds to me like what I need to do is manually create a bank deposit to match to the undeposited funds. Is that correct?

It's nice to have you back in the Community, casual.

Keeping your sales records organized is vital when running a business. I'm here to point you in the right direction on how to handle your bank deposit.

Yes, you'll have to create a bank deposit to match the Undeposited Funds (UF) account. To add one, simply follow these steps:

1. Go to the + New and select Bank Deposit.
2. From the Account dropdown, choose the account you want to put the money into.
3. Select the checkbox for the transaction.
4. Click on Save and close or Save and new. 

Here's a guide that covers various topics about managing your deposits, as well as tracking entries to the UF account: Record and make bank deposits in QuickBooks Online.

Furthermore, these resources will help you navigate the process of classifying downloaded data accurately, ensuring it is assigned to the right category, effectively tracking payments, and maintaining a balanced account:

• Deposit payments into the Undeposited Funds account in QuickBooks Online
• Categorize online bank transactions in QuickBooks Online
• Reconcile an account in QuickBooks Online
  
  

Should you have any queries on how to track deposits in QBO and other sales-related concerns, click the Reply button and tag my name. I'm always ready to lend a helping hand. I wish your business continued success, casual.

Awesome, I understand this process. So once this happens, I will be able to match the bank deposit I created against the bank deposit that comes naturally with my linked bank account. Am I understanding this correctly?

Hello there, casual.

Yes, you got it correctly. You'll need to match the bank deposit you created with the bank deposit that was downloaded from your linked bank account. This way, you won't have duplicates on your transactions, and ensure that your records are accurate.

Moreover, I'm adding this helpful article as your reference in setting up a bank rule to automatically categorize your bank transactions in QBO: Set up bank rules to categorize online banking transactions in QuickBooks Online.

Come back to this post if you have follow-up questions about matching your bank deposits in QuickBooks Online. I'll be here to lend a helping hand. Have a good one!

Ok, I have another question that popped up.

I am now steadily receiving the transmissions from my POS. My question surrounds using store credit. When a customer uses or gets store credit for selling cards to the store, the transmissions from the POS are hitting Undeposited Funds. It is normally a Journal entry that increases inventory (correct) and decreases Undeposited Funds. 

The normal sales hits undeposited funds and I do a bank deposit which matches to the linked transactions from my bank that come in automatically.

Is using Undeposited Funds correct for the store credit? Should I reclass and put that into another account? If I do a reclass, will I also have to do a Journal Entry when the customer uses their store credit? 

Now, I am not permitted to change the mapping at all. I have already asked and I can't do it. So these accounts are final, in regards of the transmissions. I will have to do journal entries.

Hi there, @casualheroescard.

That's great to hear that your transmission from POS is receiving steadily, Let me share some insights about undeposited funds.

The purpose of undeposited funds is simply a holding account that tracks payments received from customers that have not been deposited to your bank account. I'd recommend consulting your accountant if the undeposited funds are applicable for account posting to your store credits and they can also guide you regarding the reclass and journal entry. If you don't have an accountant, we'll help you find one.

Additionally, I'd like to leave this article on how to record journal entries in QuickBooks Online: Create journal entries in QuickBooks Online.

If you have more questions about banking or invoices, don't hesitate to click the reply button. I'm always around to help!

@casualheroescard 

"Is using Undeposited Funds correct for the store credit? Should I reclass and put that into another account? If I do a reclass, will I also have to do a Journal Entry when the customer uses their store credit?"

I'm always impressed with your questions.  You must have some accounting experience or education?

Undeposited funds (UF) is only correct if you're reducing your deposit amount for the day.  There are probably a few different ways this can be handled but, if you're issuing store credit, then IMO the easiest way is to reclassify the UF to A/R for the customer.  It will post a negative A/R amount (credit) to the customer's account and allow you to apply that A/R credit to a future invoice, thereby reducing the amount due.  You can't use it on sales receipts though, only invoices.  You can track the credits with the A/R Aging Detail report. 

To move the UF credit to an A/R credit, make a journal entry and debit UF and credit A/R.  That will increase UF to match your deposit and book the A/R credit. No additional journal entry is needed after that since the A/R credit can be applied to a future invoice by receiving payment (New > Receive payment).         

Yes Rainflurry! I graduated with an accounting degree and have touched the undeposited funds accounting before but not on a daily basis like this POS does. I appreciate the compliment!

This make perfect sense! If I am understanding correctly I would do the journal entry to give credit and then keep track of when it's used to take that part and reduce the A/R given. That's much cleaner than my head was going lol!

Thank you for your help!

Morning. I still am unable to pass this block with clearing UF(Undeposited funds). I have SR(sales receipts) that hit UF and close because the payment is received real time. So the SR is closed. I now have UF flying around due to the SR.

When I create the BD(Bank deposit) there is nothing (like a payment) to put on a BD because all of the SR's are closed. The only option that I see when I create a BD is to select the checking account and the things to add to this deposit. I know I put Merchant Fees to reduce the amount deposited but should the other line be UF, would this reduce the UF I have floating around?

Is this the correct process? Create the BD that way and that will reduce UF. Then my created BD's will match my bank BD's.

@casualheroescard 

"When I create the BD(Bank deposit) there is nothing (like a payment) to put on a BD because all of the SR's are closed."

The SRs need to be closed to show as an available bank deposit.  When you create a SR and choose UF under 'Deposit to', the total amount received from that SR will show under New > Bank deposit > 'Select the payments included in this deposit'.  You will see the customer listed, the date of the SR, and under 'Type' it will show 'Sales Receipt'.  Click the box and click save and it will move the funds from UF to the bank account selected under 'Account' at the top of the bank deposit screen. 

"The only option that I see when I create a BD is to select the checking account and the things to add to this deposit."

Yes, and "the things to add to this deposit" should include everything in UF.

They do not appear from UF, so that they can be selected to be part of the deposit and clear UF.  There is something not set right.  I have the same situation from RAIN POS.   I have made several calls to Customer Support and to the Live Bookkeeping team at Intuit.  I am hoping that someone in the community has a solution

I appreciate you for reaching out to us, @dxnson. Let me point you in the right direction so you can get the assistance you need about your bank deposits and Undeposited Funds in QuickBooks Online (QBO).

We'd want to help. However, reviewing the setup of your Undeposited Funds requires securely accessing your account. Since the Community is a public forum, we're unable to do that here. That said, I recommend reaching out to our customer support team. They have access to a screen-sharing tool that can identify the root cause of the issue and walk you through the resolution. While I understand you've already contacted them, I suggest getting in touch again so they can also initiate an investigation if necessary.

To do that:

1. Go to the Help icon and choose the Search tab.
2. Select Contact Us.
3. Describe your concern and select Continue.
4. Choose between Chat with us and Have us call you.

Additionally, it's a good practice to reconcile your accounts monthly to ensure they correspond to your bank statements. Doing so guarantees that they are balanced and accurate.

Feel free to get back to us anytime whenever you have additional questions about the Undeposited Funds in QBO. We're always around to offer assistance. Keep safe, and have a wonderful day ahead.

@dxnson 

"They do not appear from UF, so that they can be selected to be part of the deposit and clear UF. There is something not set right."

Weird.  Just to confirm, when you pull up your UF register (Settings > Chart of accounts > Undeposited Funds/View register), you have transactions that create a positive balance but do not show up when you try and make a bank deposit?  If so, click on one of the transactions in the UF register that is not showing as an available deposit, then click Edit.  Then, post a screenshot of that if you can.   

Oh! I can do that! If they are using Rain Pos like I am we will have the same transactions since the mapping doesn't change. Ok these aren't in  order but here is the flow.

Rain POS logs a sale and creates a sales receipt hitting UF

The Sales receipt is closed marked as Paid

Create a Bank Deposit - The sales receipt isn't there to match the bank deposit.

Same thing has happened to me.

I appreciate you providing a screenshot about the UF account issue, Denson.

The Sales receipts or Payments should be listed under Select the payments in this deposit in the Bank deposit window.

Please note that QBO has only one Undeposited Fund (UF) account used to batch deposit payments and sales receipts. It could be that the UF account isn't the default account, which is why transactions don't show.

Let's verify the Account Type and Detail type of the UF to ensure this gets fixed. 

1. Go to the Gear icon and click Switch to Business view.
2. Go back to the Gear and select Chart of accounts.
3. The Account Type should be Other Current Assets, and the Detail Type should be Undeposited Funds.

If the details are correct, yet the issue persists, I would recommend contacting our QuickBooks support to delve deeper into this issue and assist you further.

Once everything is in order, you can categorize them for easy reconciliation to ensure transactions in QuickBooks match your bank statements. 

Drop me a reply if you require additional assistance managing your deposits or other concerns. I’m always ready to lend a hand.

@casualheroescard 

Hmm.  Are you able to post to UF yourself?  Create a bogus sales receipt or journal entry (debit UF, credit sales) manually and see if that shows up as an available bank deposit.  I'm wondering if this issue is just happening with the sales receipts created by Rain or whether it happens to everything you try and post to UF.  Don't forget to delete the bogus entry.  It's worth checking to see if the UF account that Rain is posting to is the default account as @GlinetteC mentioned, but QBO doesn't allow two accounts in the chart of accounts to share the same name so that seems unlikely.  You can try clearing your cache and Intuit-specific cookies as well.

GlinetteC,

I believe your suggestion will work.  Thank you.  When I changed the accounts, the funds did appear in bank deposit for selection.  

 I just need to get them to flow to DETAIL TYPE "Undeposited Funds"  and should be set.  Something RAIN and QBO could do.  

I believe that is the problem.

Thank you for your help.

QBO has escalated example of Undeposited Funds Detail Type, not taking the transactions from the integration.  They go to Undeposited Funds Name and that does not suggest when doing the Bank Deposit.  Undeposited Funds Name is Other Current Asset.

The belief is that when migrated from Desktop there was a balance in Desktop Undeposited Funds.  The migration then set the future transactions to go to that account.

The escalation in QBO will see if they can correct the ongoing sales transaction  to the Undeposited Fund Detail Type, thus allowing the use of the Bank Deposit suggestions.     

I was able to get to the Migration Team and they are escalating to Integration Team.

Wow that's great news!