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Dennis35
September 9, 2023
Question

How to clear out or deposit undeposited funds

  • September 9, 2023
  • 1 reply
  • 0 views
I need to deposit into QBs account, the monies in Undeposited Funds. How to do it?

1 reply

M
Maybelle_S
September 10, 2023

I can help you enter undeposited funds in QuickBooks Online (QBO), Dennis35.

 

All payments in the Undeposited Funds account automatically appear in the Bank Deposit window. Let's put them into your specific account to clear them. Here's how:

 

  1. Go to the +New button.
  2. Under Other, select Bank deposit.
  3. From the Account drop-down arrow, choose the account you want to put the money into.
  4. Select the checkbox for each transaction you want to combine.
  5. Make sure the total of the selected transactions matches your deposit slip. Use your deposit slip as a reference.
  6. Hit Save and close.

 

The funds have now been moved from the Undeposited Funds account to your selected bank account, and the deposit is recorded in QuickBooks. Make sure to reconcile your bank account in QuickBooks to ensure that it matches your actual bank statement.

 

Please let me know if you have other questions about managing your customer payments. I'm always here to lend a hand. Take care!

S
Susan2005
January 9, 2024

I am trying to clear up some items listed on my balance sheet has "undeposited funds". But when I look they have been deposited and cleared on previous bank statements. So my question is, how do I go  in there and and clear this up?  I don't want to re-deposit and have duplicate deposits in there. I hoping someone can walk me through this. Thanks for any help I can get.

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Archie_B
January 9, 2024

Hello there, 

 

I understand that you're looking to clear out or deposit undeposited funds. Let me share some insights on how to clear it out and how undeposited funds work in QuickBooks Online.

 

The Undeposited Funds account is used in QuickBooks to record and hold all payments until they are physically deposited at your real-life bank. However, if you connect your bank and credit card accounts to QuickBooks, it automatically downloads all your transactions. 

 

That's why you don't need to combine transactions or use Undeposited Funds because QuickBooks already has the information from your bank. All you have to do is categorize your downloaded transactions.

 

In your case, it appears that you matched the payments with the bank deposit downloaded via Banking Feeds, which explains why the deposits on your bank statement were cleared. Now, to clear the balance in your Undeposited Funds account, we have two options to avoid duplicate deposits.

 

The first is to undo the bank deposits that were matched to your customer transactions, Like this:

 

  1. Log in to QuickBooks Online.
  2. Go to the Banking or Transactions tab.
  3. Choose the Categorized tab.
  4. Look for the bank deposit you matched and hit Undo in the Action Column.

 

After that, record a bank deposit so that you can combine the transactions from your Undeposited funds account and match them to your deposit in bank feeds. Once completed, the undeposited funds account balance should be zero.

 

The second option is to undo the bank deposit, and then exclude it in your For Review window. Once done, simply combine transactions in QuickBooks with a bank deposit. Here's an article for a more detailed guide: Record and make bank deposits in QuickBooks Online.

 

I've also included this link for the complete guide to reconciling an account: Learn the reconcile workflow in QuickBooks.

 

Feel free to leave a comment in this thread for other banking concerns. I'll be glad to help. Have a great day!

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