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GLG1977
Level 1

Undeposited Funds

This company (law firm) that has two different departments (personal injury and family). When I started they had 3 different QB company files - 1 for their operating account and general expenses, 1 for the personal injury expenses, and 1 for the family law expenses and billing. The payments against invoices were applied in the family law QB and nothing further was done with them because the funds were deposited in the operating account (and Operating QB file) where they were coded as Income under the family law income account broken down even further by sub categories into the different family law areas. 

In an effort to simplify things we started a new QB file where all three bank accounts and departments would work in concert so that there wasn't the constant switching back & forth through files. 

 

Now we've run into an issue because we receive the payments against the client invoices and those funds go into undeposited funds. They do not want to change the items in the invoice section due to the wide variety of tasks, and it being a nightmare changing it in their client tracking software that pulls over the billable time.

 

What can I do to have these funds appear in the income section?  

2 Comments 2
ZackE
Moderator

Undeposited Funds

Thanks for joining the Community, GLG1977.

 

You can turn off your option to use the Undeposited Funds account as your default deposit to account. This will enable you to manually choose a deposit to account when receiving payments for invoices.

 

Here's how to turn the setting off:
 

  1. In your top menu bar, go to Edit, then Preferences.
  2. Access the Payments screen and open its Company Preferences tab.
  3. Uncheck your Use Undeposited Funds as a default deposit to account checkbox.
  4. Select OK.

 

Now when you receive payments, you'll see an option to specify a deposit to account.

 

I've also included a detailed resource about working with the Undeposited Funds account which may come in handy moving forward: Deposit payments into your Undeposited Funds account

 

Please don't hesitate to send a reply if there's any additional questions. Have a wonderful Tuesday!

OnTrack Team
Level 4

Undeposited Funds

@GLG1977,

 

(I am struggling to understand how the reply from @ZackE relates to your issue...)

 

From your question, it looks that you expect the payment to relate to an income account.

 

Note that a customer payment hits Accounts Receivable on one end and the bank or Undeposited Funds on the other end.

 

Payments are typically deposited to Undeposited Funds, this way you can combine multiple received payments into a single deposit.

 

If your issue is that invoices are now being posted differently than they used to, please be more specific about the differences.

 

Let me know if this helps.

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