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Join nowThank you for posting here in the Community, @musicspace.
I’m here to help and share information about invoice status in QuickBooks Online.
When receiving payment in QuickBooks Online, if you chose to deposit the payments under the Undeposited funds account then this is the reason why the status of your invoice was showing as paid but not deposited.
To change the status to deposit, then you may need to do Bank Deposit.
Here’s how:
Once done, go back to the Invoices page and the status should now change to Deposited.
Also, here are some helpful articles that you can check on for future reference about receiving invoice payment in QuickBooks Online:
Feel free to post again or leave a comment below should you have additional questions. I'm always here to help. Take care!
What do I do with the bank transaction? Do I match it to the correct invoice first and then also record the bank deposit?
Thanks for getting back here, musicspace.
You'll want to record the deposit first. This will take out the payment posted from the Undeposited Funds account. Once deposited, you can match the transaction to your real-life bank deposit in the Banking page.
Here's a sample screenshot of the Undeposited Funds workflow:
I'm adding these articles for more information:
Please let us know in the comments if you have any follow-up questions or other concerns. We're always here to help you out. Take care!
Do I need to create an individual deposit for each invoice so I can match them correctly after?
It's good to hear back from you, musicspace.
Yes, you'll need to create individual deposits so it matches to those posted in your bank feeds. The deposit window can also help you combine the invoice payment and if there are charges such as bank processing fees. It is a special way for you to combine transactions so your records match your real-life bank deposit as shared by my colleagues. For more details, you can check out the articles on how to record and make bank deposits in QuickBooks Online.
Let me attach the Categorize and Match Online Bank Transactions in QuickBooks Online link again to help you handle your bank transactions.
Always know that the Community is available and ready to help 24/7. You can post your questions here anytime. Take care!
Ok, so I guess there's a separate issue now:
I've created all bank deposits and my undeposited funds (in the chart of accounts) are down to $100.50 which is exactly the amount of paid invoices that haven't been deposited yet. Success!
However, after matching the deposit in my band transactions, the categorized label is still "Undeposited Funds" even though it no longer changes my balance in the chart of accounts. Is this an issue or it is a bug I should just ignore?
Hello, musicspace.
Let me start with how the Undeposited Funds (UF) account works. The Undeposited Funds is an internal other current asset account created by QuickBooks to hold funds until you are ready to deposit them.
You can leave it as it is. Normally, the affected account of the bank deposit you've created shows as Undeposited funds. This is because the bank deposit increases the bank balance while reducing the undeposited funds.
You can review your journal entries to match your downloaded transactions, you need to follow the accounts used. You can open the transaction journal to show which account goes under the Debit and Credit column.
To open the transaction journal, you may follow these steps:
From there, you may copy the accounts and create your journal entry. Once your journal matches the transaction, it'll show "1 record found" under the Category Match column on the Banking page.
To learn more about what's undeposited funds are, you can read through this article: What’s the Undeposited Funds Account?
Feel free to read this article for more information: Add and Match Downloaded Banking Transactions.
Let me know if there's anything else I can do for you. Just leave a comment or mention my name. Have a good day!
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