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timpiercefilms
February 18, 2022
Question

Why does a credit card payment to us show up in the register as undeposited funds?

  • February 18, 2022
  • 1 reply
  • 0 views
To Q B what is undeposited funds???

    1 reply

    R
    ReymondO
    February 18, 2022

    Hi there, @timpiercefilms.

     

    Let me share some insights about the Undeposited Funds account in QuickBooks Online (QBO).

     

    The UF account is a temporary account that QuickBooks uses to hold received payments from invoices before you deposit them in the bank. 

     

    You will see this as the default "Deposit to" account when you receive payments from invoices, use a payment item on an invoice, or enter a sales receipt.

     

    It's possible that your credit card payment was recorded under this account. That's why it is showing in the register.
     

    To correct your records, simply deposit the payment to the right bank account. Let me show you how:

     

    1. Go to the Accounting menu and select Chart of Accounts.
    2. Look for the Undeposited Funds account, then click View register.
    3. Select the transaction and click Edit.
    4. Under the Deposit to drop-down list, choose the correct bank account.
    5. Click Save and close.

     

    I'd also like to give you these articles for additional guidance and reference about using the Undeposited Funds account in QBO:

     

     

    Please know that you can always reply or reach out to us again if you have other questions. We'll make sure that everything is sorted out.

    T
    timpiercefilmsAuthor
    February 21, 2022

    I think I understand but I am not choosing to temporarily place any transactions anywhere. I feel this is very confusing and misleading. These UDFs are from Credit Card Transactions only and they assign themselves to UDF. why can't they be accounts receivable or payments received? Why UDF designation. I am not temporarily placing these there as so many forums state that they are in UDF till you decide what to do with them..... it is not part of my workflow to temporarily place them anywhere. These are credit card transactions that are made from me taking the info from the client or them deciding to pay me on their own thru the invoice. WHy when I accept the transaction does it go to UDF? I am not looking for a temporary holding account. I want them to go into my bank account register as MONEY in or accoounts receivable or payments. Any designation other than UDF is fine. THank You for any reply and clarification.

     

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