AR and undeposited funds problem

Welcome to the Community, Kybred4492.

I'll show you how to solve it without having to redo every transaction.

Since they aren't using Receive Payment option, could you explain how the payment is recorded? Any information you share will help me in providing the best solution.

If you have QuickBooks Payment, funds are automatically moved to the Undeposited Funds account once the payment has been processed. It's the same thing when they use the Receive Payment option in QuickBooks Desktop.

On the other hand, the Account Receivable(AR) decreases once the invoice is paid. The payment may have unapplied status since your AR is too high. You'll need to link those unapplied payments to lower the AR account. Then, create a deposit once the money hits the actual bank.

Here's how to link unapplied payments:

1. Go to the Customer menu.
2. Select Receive Payment.
3. Ensure to choose the right customer from the Received From dropdown.
4. Put a checkmark on those unapplied payments.
5. Once done, hit Save and Close.

After that, you can go to the Banking menu to make a deposit. 

Here's how:

1. Go to the Banking Menu.
2. Click Make Deposit.
3. All the payments in the Undeposited Funds account are automatically displayed in the Bank Deposit window.
4. You can use your bank deposit slip to decide which payment to deposit.
5. Once done, hit OK.

Feel free to review the following articles for more details:

• Deposit payments into the Undeposited Funds account in QuickBooks Desktop

• Record an invoice payment

• What’s the Undeposited Funds account?

Also, you can learn more about managing the company's revenue by visiting our Sales and customer page.

You can leave a comment below if you need further assistance. I'll get back to you with more information. Have a great day.