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kathy5
Level 1

How to correct undeposited funds?

I have reconciled my bank account through December 2016.  I show a balance in undeposited funds amount for September - December. How do I fix this since I have reconciled?

Solved
Best answer October 15, 2018

Best Answers
lyndaartesani
Level 6

How to correct undeposited funds?

Go to plus sign>bank deposit. You have a customer payment entered to that acct. but not deposited.  You need to find the deposit (it is in there already somehow because you reconciled already) and update the deposit with the customer payment and remove the line item that is in there and was reconciled.

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17 Comments
lyndaartesani
Level 6

How to correct undeposited funds?

Go to plus sign>bank deposit. You have a customer payment entered to that acct. but not deposited.  You need to find the deposit (it is in there already somehow because you reconciled already) and update the deposit with the customer payment and remove the line item that is in there and was reconciled.

View solution in original post

Malama
Level 1

How to correct undeposited funds?

For majority of my clients, I personally process (ACH) payments once a month.

I have processed a payment through online bookkeeping account and cleared the invoice.

A week later funds was transferred to my bank account as a batch (multiple invoice payments),  some invoices in my bookkeeping account reflected as "Deposited" as should be and some did not, It is showing as "Undeposited". How do I change Undeposit to Deposit. 

 

Note: I did receive the correct amount of payment per client, the total payment amount as a batch was deposited to the bank, I was able to reconcile the month in my QB. 

 

I have tried several methods mentioned here on your site to trouble shoot the situation. Unfortunately, I was not able to successfully make the proper changes.  Perhaps there is another method to resolve this issue? 

 

Mona

Kristine Mae
QuickBooks Team

How to correct undeposited funds?

It seems like there are double tracking of payments, Mona.

 

If you've created a payment for the invoice already, you'll have to match the deposit to the payment instead of adding it.

 

Here's how:

  1. Click Banking, then choose Banking.
  2. Go to the For Review tab.
  3. Choose the downloaded transaction/deposit, then click to open.
  4. Choose Find match.
  5. Choose the payment, then click Save.

I've got you an article for future reference: How to add and match downloaded banking transactions.

 

You can always get back to this thread if you need more help. Have a great one! 

Rohit
Level 2

How to correct undeposited funds?

Hello, Thank you for such a great guidance. It was very helpful for me as well. Apart from that I have a question, my accountant have messed up something like we have received payments in my check bank account through QuickBooks payment or by cash in my bank account but yet there are lots payments showing in undeposited fund. So could you please guide a little bit how I can clean up my undeposited balances? Other things are that some payments of undeposited fund is real means the payments are not added yet in my check bank account so should I add them in the bank. Overall I just wanted to know what would be procedure to clean up undeposited fund. Thanks in advance Regards Rohit
HoneyLynn_G
QuickBooks Team

How to correct undeposited funds?

I can help you clear the amounts on the undeposited funds in QBO, @Rohit.

 

Undeposited Funds is created to hold funds until you are ready to deposit them. It serves as the default Deposit To account when you receive payments, use a payment item on an invoice, or enter a sales receipt.

 

To clear the amounts, you have to create a deposit transaction:

  1. On the top menu, click the Create (Plus) icon and choose Bank Deposit.
  2. Select the correct account, date, Currency, transactions and more.
  3. Click Save and close.

To learn more about this, you can refer to this article: Record and Manage Bank Deposits in QuickBooks Online.

 

You can also refer to this link for future reference: https://quickbooks.intuit.com/learn-support/en-us/undeposited-funds/understand-how-the-undeposited-f....

Let me know if there's anything else you need or you have follow-up concerns. I'm still here to help you more.

Rohit
Level 2

How to correct undeposited funds?

Dear HoneyLynn_G

Thank you for your prompt reply.

It was very useful information for me and I understood. Is there any other way to clean up undeposited fund apart from?

Thanks

Rohit

 

HoneyLynn_G
QuickBooks Team

How to correct undeposited funds?

It's nice to hear back from you, @Rohit.

 

You are very much welcome with the steps. I'm happy I came across your post and was able to address your concern. 

 

As a confirmation, the only way to clear the undeposited fund is by depositing the amounts to your desired accounts. Meanwhile, I'm adding some more references about QBO. It provides the current updates and tutorials.

Should you have any other questions that I can help you with, feel free to mention me on your posts. It's my pleasure to help you get back on your working track anytime. Cheering you a great weekend!

dgarcia611
Level 1

How to correct undeposited funds?

I accidentally clicked add instead of match.  How can I fix this?

dgarcia611
Level 1

How to correct undeposited funds?

I already clicked add instead of match.  How can I fix this?

JonpriL
Moderator

How to correct undeposited funds?

Hi there, @dgarcia611!

 

You can undo your transactions accidentally added into your register so you can match them to your existing transactions instead. I'm here to help you accomplish this.

  1. Go to Banking.
  2. Under Bank and Credit Cards, select you bank or credit card account.
  3. Select the Reviewed tab.
  4. Find your transactions accidentally added into your register.
  5. On the ACTION column, select Undo.

Once completed, you can go back to the For Review tab and match your transactions to your existing records from there.

 

Lastly, I've also added this helpful article in case you want to review your transactions after matching them: Find, Review, and Edit Transactions in your Account Register.

 

If there's anything else that I can help you with, please let me know in the comment section down below. I'll be always around ready to help.

joslinjoice
Level 1

How to correct undeposited funds?

Hi, I receive all payments directly in bank while making the received payment it accidently went to undeposited funds how can I clear that?

GlinetteC
Moderator

How to correct undeposited funds?

Not to worry, joslinjoice. I'm here to help you clear that from your Undeposited Funds account.

 

In QuickBooks Online, the Undeposited Funds serves as a temporary account that QBO uses to hold payments received from invoice before you deposit them into your real bank account. We can create a Bank Deposit to clear the amounts. Here's how:

 

  1. Click on the + New button.
  2. Select Bank Deposit.
  3. From the Account ▼ dropdown, choose the account you want to put the money into.
  4. Put a checkmark on the boxes for each transaction.
  5. Click on Save and close.

That's it! If you have any additional concerns, please add them below. I'll be glad to help.

AJ45
Level 1

How to correct undeposited funds?

RATHER THAN HAVING TO DEPOSIT FROM UNDEPOSITED FUNDS ACCOUNT FOR EACH TRANSACTION, CAN I CHANGE THE DEFAULT SETTING SO THAT ALL INCOME TRANSACTIONS GO DIRECTLY TO MY BANK ACCOUNT IN QBO AND NOT THROUGH UF?

MaryLurleenM
Moderator

How to correct undeposited funds?

Hello there, AJ45,

 

QuickBooks offers two ways when receiving payments. You can use your bank account or the undeposited funds account.

 

The Undeposited Funds account holds everything before you record a deposit. If you're using QB Payments, we automatically process and moves transactions into your accounts. You don't need to use the Undeposited Funds account.

 

If you don't want to use the Undeposited Funds account, you can select the bank account in the Deposit to field when creating a transaction. This will directly affect your bank register. Thus, you don't need to create a bank deposit.

 

Here's an article for more information about recording bank deposits: Record and make bank deposits in QuickBooks Online.

 

Let me know if you have more questions. I'll be happy to answer them for you. 

AJ45
Level 1

How to correct undeposited funds?

Thanks,

 

I have many small transactions, so is there a way to make the bank the default in the" deposit to" box so that I do not have to edit all the transactions individually. This would save so much time and essentially wasted effort because all my income is paid directly into the bank and I do not have any real life undeposited funds.

AlexV
QuickBooks Team

How to correct undeposited funds?

Good day, AJ45!

 

I'm joining this thread so I can share more info about bank deposits.

 

QuickBooks Online doesn't have an option to set a default deposit account. However, we can turn on the pre-fill feature. This will automatically fill fields, like the Deposit to, based on the last saved transaction so you don't have to reenter it.

  1. Go to the Gear icon and select Account and settings.
  2. From the Advanced tab, select the Automation section.
  3. Toggle the Pre-fill forms with previously entered content. Click Save, then Done.

 

If you need help in reconciling your account, you might want to check this link: Reconcile an account in QuickBooks Online.

 

Don't hesitate to post again if you have other questions. We'll be here to help.

AJ45
Level 1

How to correct undeposited funds?

Thanks, that should save me a lot of work.

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