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EL18
Level 1

QBO Clean Up: Receive Payments and Match Deposits

P&L shows revenue accounts with a split account to A/R however is that right since I do cash accounting? Should it not be my checking account instead?

Also, I am cleaning up my QBO accounting. I did not have invoices for deposits in the first half of the year. To try and clean it up I did the following: 1) added an invoice for a deposit. 2) Received payment within the invoice. 3) In the P&L Detail report it now showed the Invoice and the Deposit on separate lines. In the deposit line I changed the account to Accounts Receivable. This made the Deposit line go away but now I have 3 lines in Unapplied Cash Payment Income (Invoice, Payment and Deposit). I believe I messed up on my third step. Then I tried deleting the deposit and then the Unapplied lines went away and the P&L looked find but not sure if that is right.

Solved
Best answer May 03, 2021

Best Answers
AileneA
QuickBooks Team

QBO Clean Up: Receive Payments and Match Deposits

Yes you doing it right, EL18. 

 

Once you receive the invoice payment, deposit it to the Undeposited Funds. When the deposit hits your bank account, match it to the existing deposit in QuickBooks Online. 

 

Let me guide you how. 

 

  1. Go to the +New icon, then choose Received payments
  2. Choose the customer, then the invoice..
  3. Complete the Payment date and method.
  4. Enter the exact amount. 
  5. Click the Deposit to drop-down arrow, then choose Undeposited Funds.
  6. Tap Save and close.  

 

Then let's deposit the amount by going to the +New icon. Then pick Bank deposit and select the right account in the drop-down. Then match the deposit. 

  

Please, click this link for more further information: Record and make bank deposits in QuickBooks Online

 

Let me know if you have another concern by clicking the Reply button. I'm always here for you. Keep safe!

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16 Comments 16
AileneA
QuickBooks Team

QBO Clean Up: Receive Payments and Match Deposits

Yes you doing it right, EL18. 

 

Once you receive the invoice payment, deposit it to the Undeposited Funds. When the deposit hits your bank account, match it to the existing deposit in QuickBooks Online. 

 

Let me guide you how. 

 

  1. Go to the +New icon, then choose Received payments
  2. Choose the customer, then the invoice..
  3. Complete the Payment date and method.
  4. Enter the exact amount. 
  5. Click the Deposit to drop-down arrow, then choose Undeposited Funds.
  6. Tap Save and close.  

 

Then let's deposit the amount by going to the +New icon. Then pick Bank deposit and select the right account in the drop-down. Then match the deposit. 

  

Please, click this link for more further information: Record and make bank deposits in QuickBooks Online

 

Let me know if you have another concern by clicking the Reply button. I'm always here for you. Keep safe!

EL18
Level 1

QBO Clean Up: Receive Payments and Match Deposits

I prefer to not use undeposited funds account but the rest seems helpful. Thanks.

Jonnybegood
Level 2

QBO Clean Up: Receive Payments and Match Deposits

I followewed your steps.  But when I went to the bank registar it shows the deposit correctly but it still is in the undeposited funds account.  Where should it show.  The transaction also shows up in totally different project for the same customer.  I use the projects for different jobs for the same General Contractor

Jonnybegood
Level 2

QBO Clean Up: Receive Payments and Match Deposits

for step 7 there is not a button or opton to match the deposit; just the button at the bottom 'save and close or new'.  To match the deposit you have to go to the banking page.  I use Quickbooks online

Jonnybegood
Level 2

QBO Clean Up: Receive Payments and Match Deposits

In QB online how are the Undeposited funds account and the Accounts recievable linked

Charies_M
Moderator

QBO Clean Up: Receive Payments and Match Deposits

Thanks for coming back, Jonnybegood.

 

Let me continue to help you with matching deposits in QuickBooks Online (QBO).

 

Here's how to match deposits to the invoices:

 

  1. On the For Review tab, select the payments one-by-one.
  2. If the option in the Action column is Match, change the Find match to Categorize.
  3. Select the Categories (the accounts) you want to split the transaction into, then enter an amount for each split.
  4. Select a Customer for each split, then select Apply and accept.

Check out this article to learn more about: Add and match downloaded banking transactions.

 

For future reference, read through this article: How to Reconcile an Account in QuickBooks Online. It helps you learn about matching QuickBooks transactions with your actual bank statements. 

 

You know where to go if you have additional questions matching transactions in QBO. Have a good one.

Jonnybegood
Level 2

QBO Clean Up: Receive Payments and Match Deposits

Question:  After I complete step 6 of your instructions then do the next step; there is no button 'Match deposit'  is this accomplished automatically when I hit save and close.

Does this step move the deposit out of undeposited funds into the correct accounts.

Question:  In my check register I have 3 deposits 2 show they are still in the undeposited funds account and the other shows the customer and and Project name as the payee.  How did this occurr and what do I do to take the money out of undeposited funds

Question:  Why use undepositied funds when I can choose my bank account from the same drop down menue?  What is the advantage in using undeposited funds account?

 

JessT
Moderator

QBO Clean Up: Receive Payments and Match Deposits

Hello Jonnybegood!

 

I'd like to jump in and help.

 

One of the deposits in your register in this case is a separate transaction and should be deleted. Then, you'll want to create a bank deposit and choose the payments setting in the undeposited funds to move them out of that account.

 

As for your other question, money will be posted to your Undeposited Funds if you choose that account in the Deposit to field of the payment transaction. Check your payment transaction. There's a Deposit to field. You can choose your bank account in that field if the payment (actual money) if the money is directly deposited into your bank account at the time of payment. On the other hand, you'll use Undeposited Funds if you deposit the money at a later time. Please refer to this article: Using Undeposited Funds in QuickBooks Online.

 

Let me know if you have more questions.

Jonnybegood
Level 2

QBO Clean Up: Receive Payments and Match Deposits

In step 3 there are about 30 possible entries to choose from, one of which is my checking account.  How to I know which is the correct one

Jonnybegood
Level 2

QBO Clean Up: Receive Payments and Match Deposits

The deposits have 3 different amounts not the same

Rubielyn_J
QuickBooks Team

QBO Clean Up: Receive Payments and Match Deposits

Thanks for getting back to this thread, @Jonnybegood. Let me chime in and provide some insights about deposits.

 

If the received payment is deposited to the undeposited funds, then we have to create a deposit manually. 

 

Here's how:

  1. Click + New.
  2. Choose Bank Deposit.
  3. From the Account ▼ dropdown, select the account you want to put the money into.
  4. Click 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. Choose Save and close or Save and new.

 

Once done, go to the Banking page to match the bank deposit to your bank transaction. 

 

Otherwise, if the received payment is deposited into your bank register, we need to match the payment to your bank transaction. For additional information on the process, please check out this article: Categorize and match online bank transactions in QuickBooks Online.

 

Additionally, I've attach an article to learn how to reconcile your accounts so they always match your bank and credit card statements: Reconcile an account in QuickBooks Online.

 

Feel free to leave a comment below if you have further concern about handling your banking deposit in QuickBooks. I'll be happy to help. Keep safe!

lisacslater
Level 1

QBO Clean Up: Receive Payments and Match Deposits

I have not read all of the responses to your post so I hope I'm not duplicating another response...

Make sure your invoice date PRECEEDS the payment date. I have found when the invoice is later than the payment, it confuses (for lack of a better term) QBO.

CrystalB1974
Level 1

QBO Clean Up: Receive Payments and Match Deposits

My deposits do not match what my Quickbooks income is saying. In Quickbooks it is saying I made about double what I actually made. All I do is send an invoice to my customers and they pay them online. Is it counting the invoice AND the actual payment as two income amounts? What am I doing wrong? How in the world do I fix it?

Bryan_M
QuickBooks Team

QBO Clean Up: Receive Payments and Match Deposits

Hi there, @CrystalB1974.

 

Let me help you remove duplicates and share info on what scenarios this happens.

 

When you enter these transactions accidentally, you'll want to void or delete them in QuickBooks. I'll guide you on how:

 

  1. Go to Sales, then select All sales.
  2. Find the invoice that you want to void or delete.
  3. In the Action column, select the dropdown ▼, then select Void or Delete.

 

Duplicates also occur when you add downloaded transactions that you already manually entered into the program. To avoid this from happening, you'll need to find a match for these transactions. Feel free to follow the steps below:

 

  1. Go to Banking.
  2. Select your bank account.
  3. In the For Review tab, click one transaction.
  4. Select Find Match.
  5. In the Match transactions page, choose the transaction that matches and click Save.

 

If these duplicates are already accepted from your bank feeds, you have the option to exclude them in the Online Banking menu.

Here's how:

 

  1. Go to Banking.
  2. In the Reviewed tab, find the duplicate deposits.
  3. Click Undo in the Action Column.
  4. In the For Review tab, select the duplicate transactions.
  5. In the Excluded tab, check the boxes for these duplicates.
  6. Click on Batch actions. Then, select Delete.

 

For more details about managing your bank feeds, check out this link: Assign, categorize, edit, and add your downloaded banking transactions.

 

After performing the mentioned steps, if the same issue occurs with your invoice payments, I recommend contacting the QuickBooks Online (QBO) Care Team to help you navigate to the root cause of the issue.

 

Let me also add an article for more information about reconciling an account: How to Reconcile an Account in QuickBooks Online?

 

If there's anything else that I can help you with managing your invoice payments, please let me know in the comment section below.

FZV
Level 1

QBO Clean Up: Receive Payments and Match Deposits

How can I change the account type to NOT be undeposited funds. 
Undeposited funds messed with reporting.

 

Thank you

Erika_K
QuickBooks Team

QBO Clean Up: Receive Payments and Match Deposits

Thank you for being part of this discussion, FZV. I’m here to provide insights about the Undeposited Funds account and its role in your financial system. I'll share with you the process in modifying account types, allowing for more informed decision-making and a clearer idea of your financial status.

 

The Undeposited funds account is an internal other current asset account in QuickBooks. It's like a lockbox that holds the funds until you deposit them into your bank. It's also the default Deposit to account when you receive payments and bank deposits to complete the invoicing process. You can still manually choose a different account type when you record payment transactions on the Deposit to dropdown menu. I'll attach an image for your visual reference.



Additionally, if you have funds stored in the Undeposited fund's account, you can transfer them to your bank by either a
deposit or transfer.

 

Deposits:

 

  1. Go to + New.
  2. Choose Bank Deposit.
  3. From the Account dropdown menu 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. Click Save and close.
    image.png

 

Transfer:

 

  1. Locate the + New menu and choose Transfer.
  2. Click the Transfer Funds From dropdown menu to select Undeposited Funds.
  3. Then, choose the appropriate bank you want to move the money to.
  4. Enter the necessary information.
  5. Hit Save and close.
    image.png

Remember, FZV, a clearer view of your financial data leads to a more effective financial management. If you have any questions as you work through this process, don't hesitate to comment below. I'll make myself available to provide any necessary assistance as you navigate these changes. We look forward to seeing how these improvements will positively impact your financial reporting and your overall business operations! 

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