Are you a business or dealing with accounting? Then you must know about the most popular accounting software for businesses from small to wide sectors: QuickBooks. The QuickBooks solution provides many accounting and finance solutions to help you to run the business, and it can even help you to run your personal finances. In this segment we learn about the QuickBooks Undeposited funds account, how to deposit payment into the Undeposited Funds account, and how multiple payments should be done in combination.
What is an Undeposited Funds Account in QuickBooks Desktop?
The Undeposited Funds Account is a unique account in QuickBooks that enables users to record sales receipts, receive payments, and submit invoices. All payments are combined and depositedto the user's real-life bank account. It works like a locker box in which you can store all the cash and payment before taking it to the bank and making a deposit. Let’s understand it by an example: if a user deposited 5 checks of 1000 rupees each, it will be deposited as one of 5000 rupees in combined form, which matchesthe bank record. Same as with the QuickBooks Undeposited Funds Account, which accumulates all the invoice payments and sales receipts and then allows you to combine them. After getting the deposit slip, the bank deposit should match the combined payments in Undeposited Funds. Basically, the Undeposited Funds Account holds customer payments in QuickBooks until you deposit them at your real-life bank. Once you have deposited your deposit slip, you can consolidate these payments into a single record, which should match up with your bank records.
Now we understand how to deposit payments into your Undeposited Funds Account before combining them.
Enter transaction with undeposited funds
- Click on the lists menu and then select items.
- Select the type of payment from the “Type” drop-down menu, and then add any additional information for the transaction.
- Now click on the account form drop-down menu, then select Undeposited Funds, and then click on Ok.
How to deposits undeposited funds into an Account in QuickBooks desktop
- Navigate to the banking menu on the QuickBooks desktop and select "Make Deposits."
- Select the payments option from Undeposited Funds That you want to deposit.
- If the Payment of deposit window does not open automatically, then click on "Payments" on the Make Deposits window.
- Now click on ok.
- Choose the bank account from the "Deposit to from" drop-down menu that you want to deposit.
- Fill in the details as needed, such as entering the date in the Date Field and entering any additional payments to deposit that didn’t come from the Undeposited Funds account.
- For print, select the option to print a deposit slip and then click to print.
- Now click on ok to save the transaction.
- Take the deposit slip to the bank and deposit the funds slip into your account.