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lindak1119
Level 7
October 16, 2018
Solved

How do I create a new Undeposited Funds account?

  • October 16, 2018
  • 6 replies
  • 67 views

Somehow I setup my Undeposited Funds Account with the detail type of "Other Current Asset". Thus, when I deposited checks into the Undeposited Funds account, the checks weren't showing up in the Bank Deposit window. When I try and edit the COA details to make the detail type Undeposited Funds, or if I try and create a new COA entry as an Undeposited Funds account, I recieve this error message : "Something’s not quite right

You cannot change the detail type of an account to be Undeposited Funds or change an Undeposited Funds detail type account to be another detail type."

How can I get around this?
Best answer by lyndaartesani

You did not set that up. It is a default acct.  And you cannot create a second one that will work. Use the one you have.

When you receive a customer payment and have it deposit into that acct, the next step is to go to +bank deposit to clear undeposited funds and deposit the $ into the bank acct. That is the step you are missing.

6 replies

A
Anonymous
October 16, 2018
Did you manage to find or create a new Undeposited Funds accounts? I am having the same issue. I've checked every single account in my chart of accounts, but none of them has a detail type of the undeposited funds. It just doesn't exist :/
    M
    Malcolm Ziman
    Level 4
    October 16, 2018
    The Type (2nd column) is Other Current Assets, so just look in that group.  If not there, did you try and create a new account with Type of Other Current Assets and Detail Type of the Undeposited Funds?
    lyndaartesani
    lyndaartesaniAnswer
    Level 4
    October 16, 2018

    You did not set that up. It is a default acct.  And you cannot create a second one that will work. Use the one you have.

    When you receive a customer payment and have it deposit into that acct, the next step is to go to +bank deposit to clear undeposited funds and deposit the $ into the bank acct. That is the step you are missing.

    M
    Malcolm Ziman
    Level 4
    October 16, 2018
    OK educate us. What do we not know?
    M
    Malcolm Ziman
    Level 4
    February 7, 2019

    Agree 100% that if you receive payment  (in hand) and do not get into bank by 12/31, that SHOULD be recorded as cash received and pay taxes on that income for the current year.  

     

    But if I do not check my mailbox until after I file my tax return, I am not amending tax return and therefore will not be paying taxes on that income until next year.  Account is no benefit to me.

     

    Can or will IRS try to prove whether check was in my mailbox or my drawer those 2 days, who knows, but if they ask USPS mail lady, she will confirm I do not check my mail daily for sure.

     

    Clearly, some people do this or QB would not likely have account for this, but many/most don't. This was my point to those looking to add to this category, that they may never see elsewhere.  

     

    Since in my 35 years of accounting at almost 90 companies, I have never once seen this done, just a fact to add to my opinion on this account and my own personal non-use of such account

    since I do not usually receive any paper checks and if I do, I deposit via cellphone same day.

     

    I cannot speak for the rest of the world or what they choose to do, but encourage anyone who can, to avoid paper checks for many reasons, including time delay and process efficiency.

     


    What if you receive 2 checks today and deposit them today in one deposit?

    lyndaartesani
    lyndaartesani
    Level 4
    October 16, 2018

    Someone must have renamed the default one.  You cannot delete the default one, so it has to be there.  Look for it in your chart of accts list.

    L
    lindak1119Author
    Level 7
    October 16, 2018
    Well Lynda it's not there in mine either!!!!!
      B
      BC58
      February 9, 2024

      I don't have an Undeposited Funds Account either!

      D
      DEBookkeeping
      September 10, 2019

      The undeposited funds account is a temporary account for funds in your possession or waiting in the cash register to be deposited. Company owners that wait, say a week to go to the bank, will hold the money in a safe until taken to bank.

      So not to lose control and be able to close daily sales, the amount is sent to the current asset “undeposited fund” account. This amount will show in the balance sheet as part of the assets of the company.

      So to begin with you properly created the transit account like you mention.

      There is one step pending.

      Once the money and checks are sent to the bank, there has to be a transfer made from “undeposited funds” to the “bank” account.

      So the steps are as follows #1 create the transit account, #2 transfer funds when deposit to bank account is done

      So step #1 as follows:

      #1 How to create a new Undeposited Funds account

      Go gear (top right) / Cart of accounts / new

      Or

      Left down to Accounting / Chart of accounts / New

      Account Type: Current assets

      Detail Type: Undeposited Funds

      Name: Description of your choice

      Save

      Step #2 the transfer

      #2 Go to Gear (top right) / Transfer

      Transfer Funds From: Undeposited funds account

      Transfer Funds To: Checking account

      Transfer Amount: Amount to transfer

      Date: Date of Transfer

      Save

      S
      Steven Lima
      September 11, 2020

      The Undeposited Funds account is Created by checking the box under:

      Edit - Preferences - Payments -Company Preferences - Use Undeposited Funds as a default deposit it account.

       

      I found this issue while trying to print out Deposit Slips for customer payments.

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