cancel
Showing results for 
Search instead for 
Did you mean: 
Not applicable

How do I create a new Undeposited Funds account?

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?
Solved
Best answer 10-15-2018

Accepted Solutions
Highlighted
Super Contributor *

You did not set that up. It is a default acct.  And you c...

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.

View solution in original post

34 Comments
Anonymous
Not applicable

Did you manage to find or create a new Undeposited Funds...

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 :/
Established Community Backer ***

The Type (2nd column) is Other Current Assets, so just lo...

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?
Highlighted
Super Contributor *

You did not set that up. It is a default acct.  And you c...

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.

View solution in original post

Not applicable

Thanks, Linda. However, how could this be a default accou...

Thanks, Linda. However, how could this be a default account when it wasn't setup properly? You see, both the "Type" and the "Detail Type" are both "Other Current Assets". The "Detail Type" should be marked as "Undeposited Funds". So I can't even see the undeposited funds account balance when I go to +bank deposit. And I can't change the COA to mark the "Detail Type" as "Undeposited Funds". I am stuck.
Established Community Backer ***

Make that problem account inactive, then reboot and log b...

Make that problem account inactive, then reboot and log back in. Create a sales receipt for any amount, QB should create a new proper UF account for you
Established Community Backer ***

You don't have to reboot -  that won't change a thing. An...

You don't have to reboot -  that won't change a thing. And making inactive won't help.  You can rename to anything you want but not delete the account with Detail Type of Undeposited Funds.  Once you find the true UF account, you will have to change the undeposited previous receipts/payments to this account.  You can rename both the imposter and the true account if you want.
Not applicable

The problem that most of the people answering this type o...

The problem that most of the people answering this type of question know Quickbooks but don't understand accounting  or GAAP.
Established Community Backer ***

OK educate us. What do we not know?

OK educate us. What do we not know?
Not applicable

SAMZ, what did you do because I have the same problem. No...

SAMZ, what did you do because I have the same problem. Nothing in Detail type says UF.
Community Contributor *

I also, do not have an Undeposited Funds account in my Ac...

I also, do not have an Undeposited Funds account in my Active or Inactive Chart of Accounts.  I've looked as well.
Super Contributor *

Someone must have renamed the default one.  You cannot de...

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.

Not applicable

Well Lynda it's not there in mine either!!!!!

Well Lynda it's not there in mine either!!!!!
Established Community Backer ***

Re: OK educate us. What do we not know?

Undeposited Funds is NOT normal account used by accountants or in any accounting class.  This account exists only in QB, I have never seen it elsewhere in 35 years of doing accounting.

 

Accounting is the function of recording transactions for business activities AFTER they occur, so bank deposits should not be recorded until they have actually been DEPOSITED in your bank. 

Established Community Backer ***

Re: OK educate us. What do we not know?

@Teri

 

This is Exactly why you use UF: "so bank deposits should not be recorded until they have actually been DEPOSITED in your bank."

 

Example: Your customer invoices are supposed to be paid by the 10th. You get their payments on the 8th-10th, but don't go to the bank until the 12th. The Banking date is Not the date the customers paid; that would imply they all paid late. The Payments flow to UF, which is a Holding account for "funds in transit" and when you make the deposit for the 12th, you select the transactions pending to be part of a deposit. And the Payment date is not the Banking date, either, and they didn't get deposited One at a time over those days. You need to match reality.

 

"This account exists only in QB, I have never seen it elsewhere in 35 years of doing accounting."

 

UF is a specific Holding account in Assets to reflect Funds in Transit; and the transaction In is the same transaction Out, because it is a self-managed account. And yes, auditors are familiar with Holding accounts and Funds in transit; you've likely seen the words Suspense or Clearing. In reality, if you have a big envelope of Undeposited Funds in your desk's locking drawer, then by definition, they are Undeposited Asset. And the QB tools are Functions for this; we don't need to manually deal with Suspense. We already have a built in tool: UF as an Asset.

 

If you hold them in a safe, then you should be managing the Safe as a Bank Type of account and the customer payments would post to Safe Bank directly and the deposit later is a Transfer from Safe bank to Operating Checking bank. Because the bookkeeping should match your reality.

Established Community Backer ***

Re: OK educate us. What do we not know?

I understand how the account works, I just never use it so I would not encourage setting up more.    Definitely QB unique from what I have seen and don't think it is a good practice to follow.  Surely not something large companies do.  I cannot recall the last time I went to an actual bank in person but I think it was the day I opened my business bank account in 2008 and the last paper check I saw was years ago as well. 

Established Community Backer ***

Re: OK educate us. What do we not know?

You are Not Supposed to set up this account; QB does it Automatically and that is the problem people have in this topic.

 

"so I would not encourage setting up more.    Definitely QB unique from what I have seen and don't think it is a good practice to follow."

 

It's Fine. I work with Audited files all the time. The money in your possession is your Asset; you have access to it, so it has to be entered. That is why you use UF.

 

"Surely not something large companies do.  I cannot recall the last time I went to an actual bank in person but I think it was the day I opened my business bank account in 2008 and the last paper check I saw was years ago as well."

 

Well, that's You. That's not the entire world. One file I manage under contract has 84 customers, charged monthly. Over the years, I have got half on ACH, but the other half sends Bank Checks or handwrites them. One customer still sends Money Orders, rounds it to the nearest whole dollar, then includes Quarters and other change.

 

The QB tools provide what we need to meet our needs. Your needs may vary. That doesn't make the Tools wrong.

Not applicable

Re: Someone must have renamed the default one. You cannot de...

Lynda,

 

I am having the same issue.  I have looked at every account - active and inactive - and cannot determine which one is designated to UF.  I have, literally, selected the "type" and "detail type" for each account and I do not see where another account has been associated with UF.  Yet, when I try to deposit the UF funds into the bank, it does not show up on the screen.  Any suggestions you have would be greatly appreciated.

Established Community Backer ***

Re: OK educate us. What do we not know?




@Teri wrote:

Undeposited Funds is NOT normal account used by accountants or in any accounting class.  This account exists only in QB, I have never seen it elsewhere in 35 years of doing accounting.

 

Accounting is the function of recording transactions for business activities AFTER they occur, so bank deposits should not be recorded until they have actually been DEPOSITED in your bank. 


 

 

This is wrong. The receipt of a check is an accounting event. It doesn't matter what date you record it as long as the transaction date is the date you received the check. The deposit in the bank is a separate accounting event. 

So for the 12/31 financial statements if a check was received from a customer on 12/31, put in a drawer and deposited on 1/2, it is not a Bank asset and is not a Receivable asset.  It's a separate asset called something like Undeposited Funds 

Established Community Backer ***

Re: OK educate us. What do we not know?

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.

 

Established Community Backer ***

Re: OK educate us. What do we not know?

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

Established Community Backer ***

Re: OK educate us. What do we not know?

Are you asking me?  I do not receive checks from customers, all pay me electronically.  If I get some rare random tax refund check in the mail, I deposit that via cellphone usually same day, as noted.  Can't imagine getting two in same day, but my answer would not change.  What is your point? 

Established Community Backer ***

Re: OK educate us. What do we not know?

My main point is that I do not see this as something QB needs to fix or change and my only request would be to let me delete it since not needed.

Established Community Backer ***

Re: OK educate us. What do we not know?

@Teri

 

It isn't clear if you are asking about desktop or Online: "and my only request would be to let me delete it since not needed."

 

There is a List of Accounts that QB creates automatically, but not Right Away. They are only created if they are needed. Once you enable a function or use something that forces the program to create the account, it won't Go Away, because that means it got used and has activity. For instance, a file won't have inventory or COGs until you enable Inventory. It won't have "Reconciliation Discrepancies" until you Force a reconciliation that is not at a difference of 0.

 

Otherwise, it helps Not to complain about something You Don't need (UF) when many others of us need it and use it all the time. I don't carry inventory, but I also don't complain that the Function of Inventory should not even exist. This is not your Personal Program written just for you. That's like complaining that since you only drive during the day, you want to buy a car without Headlights.

 

Please see my attachment. Read Handout 2.

 

Established Community Backer ***

Re: OK educate us. What do we not know?

QB - I was not asking about either one. I responded to original question at the top of this page, which asked how to setup additional accounts for "Undeposited Funds." My reply was no need

since is not a common account so not likely you would need more than one and certainly not a task I would suggest QB SW developers waste time on trying to resolve on their long to-do list.

 

You clarified that it cannot be done since the system creates that particular account for you and that is what I do not like about QB, is that it does things for you that you don't even really need. For me and many others, like all of my clients, we rarely get paper checks or do bank deposits.  All is paid electronically so forcing two-step process for bank deposit is just confusing to many.

 

Then saw others post same issue which is really not an issue at all in accounting outside of QB.

Many people see that as a challenge and will try to change the system or create workaround if they assume this to be an accounting requirement, as you suggest that QB can't do as needed.

So yes my vote is turn it off or make it optional but is not a significant issue on my list of to-do's.

 

Need to get in touch?

Contact us