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What are undeposited funds?

Answer ID: 1166

Think of the Undeposited Funds account as an envelope where you keep checks until you take them to the bank.

If you deposit more than one check or payment in a group deposit, you can enter those transactions so that your Bank Register matches your Bank's monthly statement.

  1. When you record each payment, choose Group with other undeposited funds instead of Deposit to a Bank account. Note: If this is a credit card transaction handled through Intuit Merchant Services, see KB 2100for steps on how to set this as your default.
  2. When you have all the checks entered and you are ready to actually deposit them in your bank, use Deposits.
  3. In the Deposits screen you can select at the top which bank account you'd like to deposit to.
  4. Select the appropriate Date at the top right.
  5. If you have Location Tracking turned on you can select a Location.
  6. You will see a Payments section.  These payments listed are the ones you recorded and marked to go to undeposited funds.  You can now select which of these payments you'd like to include in this deposit for the day. Note: These will be listed in the order the payments were received and not by the date the payment was due.
  7. Click Save.

Because we are trying to replicate in your QuickBooks Online Company what you're actually doing daily, then when your bank statement arrives, the amount of the deposit matches the deposit in your QuickBooks Online bank register.

Note: Certain reports or registers may show the deposited amount listed under Undeposited Funds, which, is used to denote the last account the funds were in before being deposited.  To see what funds are sitting in Undeposited Funds that have not yet been deposited to the bank account, go to your Banking menu and select Deposits or look at the Undeposited Funds account via your Balance Sheet from the Reports menu.

Or to create an Account QuickReport for a list of Undeposited Funds please, see the related KnowledgeBase article 2489: How can I create a report that shows a list of undeposited funds?

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