Let me share some information about undeposited funds and deposits, jac.
An undeposited funds account is to hold invoice payments and sales receipts you want to combine. It's like a lockbox (or drawer) where you store payments before taking them to the bank. On the other hand, deposits are to combine multiple transactions into a single record so QuickBooks matches your real-life bank deposits.
To address the deposits stored in Undeposited Funds, you haven't recorded them in QuickBooks after depositing the money to your financial institution. The invoice is paid but isn't posted in QuickBooks yet.
It's possible to rectify this, but it's best to consult your financial professional. If you decide to proceed with the modification, check if there are any changes with the reconciliation, if there are, you can reconcile previously deleted and re-entered checking or credit card transactions.
Regarding the open invoices, it might be that you directly entered the deposit without linking the invoices. To get started, we have to edit the deposit first.
Here's how:
- Go to Lists.
- Select Chart of accounts.
- Choose the bank account, and search for the deposit.
- Then, select the transaction.
- Click Save & Close.
Afterward, we can apply the deposit to your invoices.
- Go to the Invoice page.
- Then, click the Receive Payments button.
- Choose Apply Credits.
- Select the deposit.
- Click Done, then Save & Close.
For future reference about the different processes involved in making payments, visit this article: Resolve common issues when applying a payment towards an invoice.
Please don't hesitate to comment below, if you have additional concerns about managing your invoices and deposits. We're always here to help.
