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SWyatt502
April 17, 2019
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How to properly receive a payment and make deposit when your bank is attached to QBO

  • April 17, 2019
  • 4 replies
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I have my bank attached to QBO.  Currently - when I receive a payment for an invoice, I open the customer, select the invoice, receive payment and fill in all info.  The payment goes into my UNDEPOSITED FUNDS.  From there, (I thought) I was to go to bank deposit and pull all the payments I made for the day and create my deposit.  However, my recorded payment/s never show up here. Instead, I have to do a Journal entry from UNDEPOSITED FUNDS to my GENERAL FUND. I run a register for the day and export to excel to make up a manual deposit ticket.

 

I called Intuit and the guy I spoke to said I'm doing it wrong.  He said that I need to just take all my checks to the bank and deposit them - then wait for them to hit my General Fund register in Intuit and match them up to my invoices.  This doesn't seem right to me.  First of all, how do I make up the deposit slip if I haven't received the payments in the system?  2nd - why should I just trust the bank to make the deposit right and I have nothing recorded on my end. 

 

In any event, I can find no actual procedures anywhere on how to properly received my payment - then make the deposit - when I have the bank account attached.  Can anyone help?  I've been struggling with this for over 4 months. 

 

Thanks

    Best answer by JessT

    I can imagine the challenges you've been through for months now, SWyatt502.

     

    You got me here, and I'll help you with this.

     

    There's only one Undeposited Funds (UF) account in QuickBooks Online, and it is used to batch deposit payments. What I can conclude based on description is your UNDEPOSITED FUNDS account is not the default Undeposited Funds account in QuickBooks. Let's dig deeper.

     

    Please go to your Chart of Accounts and check your UF account. The Type should be Other Current Assets and the Detail Type should be Undeposited Funds as shown in the screenshot.

     

    If the account doesn't agree with the details above, please look for the account with those details. Then, rename it as Undeposited Funds and use it to deposit your payments. However, if everything looks correct, please have our Phone or Chat agents take a look at your company setup. They have more tools to help them check this further.

    1. Click on Help and click Contact us.
    2. Enter a summary of your concern and click Continue.
    3. Choose from Start messaging or Get a callback.

    You can always go back to this thread if you have other questions.

    4 replies

    IamjuViel
    IamjuViel
    April 17, 2019

    Appreciate the complete details of your concern, @SWyatt502

     

    I'd be delighted to share some resources on how you can receive your customer's payments and deposit it to your connected bank account in QuickBooks. Let's get started.

     

    You have different ways to record your customer's invoice payment:

    In all of these options, you may deposit the payment directly to your bank account instead of using the Undeposited Funds account. Just make sure to select the desired bank account on the Deposit To section.

     

    Here's a video tutorial for a more detailed instruction:

     

    On the other hand, if the bank account where the invoice payments are actually deposited and posted is connected with QuickBooks, your bank transactions will downloaded automatically in the system. You can see these transactions listed under the For Review section of your screen.

    1. Go to Banking.
    2. Select Banking tab.
    3. Choose the  bank account.
    4. Under the For Review tab, you'll see a list of your downloaded bank transactions.
      • Click the Add button if the transaction doesn't have similar one that you've manually added.
      • If the system finds a match to the downloaded transaction, it will be displayed on the Categories and Actions column.
      • Open the match transactions to review the details. Once verified, click on the Match.

    By matching transactions, you'll avoid getting duplicate records of your transaction in the bank register.

     

    That should do it! This will allow you to record and deposit your customer's payments systematically in QuickBooks.

     

    You can always get back to us here in the Community if yo have other questions about receiving payments and depositing it in QuickBooks. I'm always here to help.

    S
    SWyatt502Author
    April 18, 2019

    Thank you @IamjuViel for the detailed instructions.  I'm still confused though. 

    In the video “How to receive Payments” at time mark 1:30 – this is what is not happening for me. I receive multiple payments in a day. I want to make a group deposit so my QB bank register matches my bank statement. So if I have 10 - $100 payments, my bank statement shows a deposit of $1000.
    I have followed the procedures just as this video says to do BUT when I go to the Bank deposit page (see time mark 1:30 in video), my payments are not there. This page is completely blank. Even though my payments are showing up in my UNDEPOSITED FUNDS account/register. It’s baffling.

    Everything I read says I should be able to do exactly what this video shows, but it's not working for me.

     

    BTW - Thanks for the Tips & Tricks video too.  It was helpful too.  Just not on this issue.  I don't want to deposit my checks and then wait for it to hit the bank and recreate the payment receipt.  That just sounds like it provides too much room for error.  To me anyway.

    JessT
    JessTAnswer
    April 18, 2019

    I can imagine the challenges you've been through for months now, SWyatt502.

     

    You got me here, and I'll help you with this.

     

    There's only one Undeposited Funds (UF) account in QuickBooks Online, and it is used to batch deposit payments. What I can conclude based on description is your UNDEPOSITED FUNDS account is not the default Undeposited Funds account in QuickBooks. Let's dig deeper.

     

    Please go to your Chart of Accounts and check your UF account. The Type should be Other Current Assets and the Detail Type should be Undeposited Funds as shown in the screenshot.

     

    If the account doesn't agree with the details above, please look for the account with those details. Then, rename it as Undeposited Funds and use it to deposit your payments. However, if everything looks correct, please have our Phone or Chat agents take a look at your company setup. They have more tools to help them check this further.

    1. Click on Help and click Contact us.
    2. Enter a summary of your concern and click Continue.
    3. Choose from Start messaging or Get a callback.

    You can always go back to this thread if you have other questions.

      L
      lsmith94
      February 7, 2021

      I did the same thing when I first started and now know how to connect the payments, but now I'm struggling with fixing what I messed up in the beginning. For example, when I received payment, I went into the customer's file and clicked "payment received" and typed how much I received. Now I am trying to go back and apply the deposited funds from my bank to the appropriate invoice but not sure how to run a report to the ones that are not already linked and I'm afraid to go in and delete payments just in case they are linked. Any suggestions on this?

      R
      Ryan_M
      February 7, 2021

      Hi @lsmith94,

       

      I'll walk you through what report you can run to confirm which deposits were cleared from your online bank in QuickBooks Online (QBO).

       

      You can run the Deposit Detail report. With a little bit of customization, you can find what you're looking for.

       

      Here's how:

       

      1. Go to the Reports tab.
      2. Search for Deposit Detail, then click to open it.
      3. Set the date range that you need.

      On the report page, click the small Gear icon beside the Export icon. It allows you to customize the columns available on the report. Tick Clr, which tells you if a certain transaction was cleared from your bank, or not. A cleared transaction means you have matched it to an online bank transaction. 

       

      See this screenshot for reference:

       

       

      I'll share this article with you: Deposit on an invoice is not showing up on the deposit detail report. It has the steps you need to take for deposits in an invoice to appear in the Deposit Detail report. 

       

      Post a reply if you have other questions about deposits in QBO. I'll be around to help you out.

      L
      lsmith94
      February 10, 2021

      It worked wonderfully. Thank you for having a platform for me to consult when needed.

      B
      basemech
      January 19, 2023

      This is exactly what I've having issues with and can't find any answers that completely answer this issue.  Did you ever get it figured out and could you help me!!  Thanks so much.

       

      Bobbi

      Rose-A
      Rose-A
      January 19, 2023

      I appreciate you following up on this thread, basemech.

       

      If you're attempting to record a payment in QuickBooks Online, we can use the Receive Payment feature and create a deposit to transfer the payment to your bank's online banking account.

       

      Here's how:

       

      1. Click + New in the left panel and choose Receive payment.
      2. Choose a customer.
      3. Select the invoice.
      4. Hit Save and close.

       

      Once done, we can transfer the payment by creating a deposit. Here's an article that provides the detailed steps: Record and make bank deposits in QuickBooks Online.


      In case you want to reconcile the account, you can follow the guide in this article: Reconcile an account in QuickBooks Online. This will provide us with steps on how to manually reconcile your account that's not connected to online banking.


      If you still need help with payments, please let me know. I'd be more than willing to lend you a hand. Have a good one.

      B
      Blount Consulting LLC
      July 12, 2023

      I followed your process on this and when I enter "save and close" I get the following error.

      Something's not quite right
      The transaction was declined because the bank account is incorrect, or there is a security concern.
      If the problem persists, please contact us
       
      I'm just trying to mark an open invoice as "paid". I have my banking deposit set up through Bill.com into my BOA account. What am I doing wrong? 
      J
      Jonny On The Spot
      June 20, 2024

      Guys! Apparently the Online QB did an update. And when they did, they changed the toggle on the "Receive Payment" page as to where to deposit the funds. It MUST be set to be deposited to Undeposited Funds in order to flow over to the Bank Deposit page to allow a deposit slip to be printed!

       

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