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Level 2

IIF import created unusable "*undeposited funds" account (added asterisk)

I regularly use IIF files to import.

On a large import via IIF file last week, a new account was created for undeposited funds, with an asterisk in front of it.  ( "*undeposited funds")

Nothing in this new undeposited funds account can be deposited in any way I can find (go to banking>make deposits and there is nothing there....)  Nor can it be merged with the "real" undeposited funds account. 

There are literally thousands of deposits stuck in this new account. 

Has this happened to anyone, and how did you resolve it???

Thanks for any help you may have!



5 Comments 5

IIF import created unusable "*undeposited funds" account (added asterisk)

It's nice to have you here, BucksCtyAcct.


When importing IIF, QuickBooks creates a new Undeposited Funds account where the payments are reflected there instead of going to the QB Undeposited Funds account. 


The one you're seeing is the original Undeposited Funds account. It is renamed "*Undeposited Funds" and contains a balance of zero. Thus, it enables you to make a deposit from the new account.


Here's an article for activities you can do with IIF files in QuickBooks Desktop (QBDT): Tasks you can do with IIF files


To fix this, we'll want to create Clearing Account to directly put the data there. Then, make a transfer from there to real checking and stop using new Undeposited Funds.


For the complete steps on how to set up a clearing account in QBDT, check out this article: Set up a clearing account.


Then you can apply the clearing account to a Journal Entry and following the steps below:

  1. Create a journal entry.
  2. Add the AR or AP from which you are moving money.
  3. Add the Clearing account.
  4. Save the Journal Entry.
  5. Create a second Journal Entry.
  6. Add the Clearing Account.
  7. Add the AR or AP account to which you moving money.
  8. In either Pay Bills or Receive Payments, link the Journal Entries together.

Check out this article about the Transaction Journal report in QuickBooks Desktop to review the information.


Anything else you need help with can be answered here in the Community. Just let me know and I'd be happy to assist. Have a good one.

Level 2

IIF import created unusable "*undeposited funds" account (added asterisk)

I'm not sure I understand. 

I import IIF files 10-15 times a week from a TMS software, and this is the first time this has happened- the creation of an "extra" undeposited funds account.


For this particular client, they now have 31m !!! in "undeposited funds" (with no asterisk), which is comprised of a few thousand payments that need to be deposited.


But there is no way I can find to get those deposits to populate the "payments" box when I go to banking > make payments.


I need to be able to use the undeposited payments feature for these, as the actual deposit to the bank is made up of anywhere between 1 and 25 of these payments at a time. 


Is your suggestion that I just make a 31m journal entry to get them into the bank? How would I ever reconcile the last 4 months bank statements? (I believe this is 4 months worth, it may be 5)


Please help me understand your reply a bit more. 


Thanks for your help,





IIF import created unusable "*undeposited funds" account (added asterisk)

We can merge these accounts, BucksCtyAcct.


Let's do that so you can still work on the account like you used to.


Before you begin:

  • Backup your company file in QuickBooks Desktop for Windows or Mac.
  • Switch your company file to "Single User" mode.
  • Clear any pending accountant changes.
  • Ensure multicurrency isn't turned on in QuickBooks Desktop for Windows.
  1. Go to the list that has the entries you want to merge.
  2. Copy the name of the entry you want to keep.
  3. Right-click the entry you don’t want to use, then select Edit.
  4. Paste the name you copied, then select Save & Close.
  5. Select Yes to merge the entries.

If you get a message that says “You cannot merge an account that has online information associated with it into another account”, you have an active bank feed on one of the accounts. Here’s how to turn off bank feeds.


Let me know if you have any other issues or concerns by leaving a comment below.

Level 2

IIF import created unusable "*undeposited funds" account (added asterisk)

As I mentioned in my original post, I already tried merging the accounts.

They cannot be merged, as it gives me a message that "undeposited funds is a special account and cannot be merged."

QuickBooks Team

IIF import created unusable "*undeposited funds" account (added asterisk)

Thanks for following up with the Community, BucksCtyAcct.

Since you're unable to merge your two undeposited funds accounts, I'd recommend utilizing the Verify Data tool. It identifies known issues within company files and informs users if their Rebuild Data utility needs to be used afterwards.

Here's how it's used:

  1. Click Window, then Close All.
  2. In your top menu bar, go to File.
  3. Choose Utilities.
  4. Select Verify Data.

If its results show a "Your data has lost integrity," message, this indicates there's damage in your file. You can use the Rebuild Data utility to fix it. For specific errors, there may already be a resource for them on our support site.

In the event it displays a "QuickBooks detected no problems with your data," notification, or you've searched our help articles and didn't find any existing resources about the specific error it displayed, you'll want to get in touch with our Customer Care Team. They'll be able to pull up your account in a secure environment, conduct further research into this "undeposited funds is a special account and cannot be merged." message you're encountering, and create an investigation ticket if necessary.

They can be reached while using QuickBooks:

  1. In the top menu bar, go to Help, then QuickBooks Desktop Help.
  2. Click Contact Us.
  3. Enter a brief description of your problem in our Ask a question (or tell us what's wrong) field.
  4. Hit Continue.
  5. Select We’ll contact you for a callback or Message Us to start an instant messaging session.


Be sure to review their support hours so you'll know when agents are available.

Please feel more than welcome in sending a reply if there's any questions. Have a lovely day!

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