Undeposited Funds

Question

The company I work for just got QB and started a new QB Desktop file. We imported our Chart of Accounts, which already included an undeposited funds account, into the file. I saw two undeposited funds accounts so I deleted one of them. It turns out, I deleted the account that QuickBooks automatically created with the new file. Now, I want to receive payments to the undeposited funds account that I created, then make deposits to the checking account from that undeposited funds account. But QuickBooks will not recognize payments made to the undeposited funds account I created when I go to record a deposit, so even though I receive payments to that account, I cannot find a way to record the deposit. What are my options? Is there a way to specify my undeposited funds account as the account which I want the file to recognize as the "undeposited funds" function?

AlcaeusF · Accepted Answer

I have attached a screenshot of the function I am trying to perform. Will I be able to do this if I do not have the QB created undeposited funds account? It does not seem to be possible with it deleted, but I would like to be able to do it.

Thanks for getting back to us, vytronaccounting.

I appreciate you sharing a screenshot and following the steps shared by my colleagues above. Allow me to join the conversation and share additional information about depositing payments in QuickBooks Desktop (QBDT).

Yes, you can still record the deposits. However, since the default Undeposited Funds (UF) account was deleted, the system won't automatically display the payment. You'll need to manually select the imported UF account as well as the other information in the Make Deposit screen.

Here's how to do it:

Click the Record Deposits option on your screenshot.
In the Make Deposit screen, select the account you want to deposit the payment in the Deposit To drop-down.
Choose the customer's name in the Received From column.
In the From Account column, pick the imported UF account.
Enter the other necessary information in the desired columns.
Hit Save & Close once done.

If you don't want to enter them manually, you can restore the previous backup file before the default UF account was deleted, as mentioned by my colleague Candice above. You can refer to this article for the detailed steps on how to do it: Restore a backup of your company file.

I'll be adding this article that tackles reconciling in QBDT to ensure your accounts are balanced and accurate: Reconcile an account in QuickBooks Desktop.

I'll be around if you need additional help with making deposits or something else in QBDT. Take care always.

ChristieAnn 11 · Answer

Hi there, vytronaccounting.

Thank you for visiting again the QuickBooks Community. I'll be sharing details on how accounts in QuickBooks works. Then, make sure that you're able to make a deposit from the undeposited funds.

When you set up a company file, QuickBooks automatically adds accounts to your chart of accounts. This is based on the type of business or your industry for better tracking. Also, everyone gets the same set of standards accounts so you can make changes to the existing or add new ones. This is to ensure that you properly record how much money your company has and owes, and the money that comes in and out.

To recognize the payments made to the Undeposited funds account, I suggest activating the deleted account that QuickBooks automatically created. Then, merge to the imported undeposited funds you've made.

Here's how to make the account active.

Go to the Lists menu and select Chart of Accounts.
Choose the Include inactive checkbox.
Right-click on the account you want to make active again. Then, select Edit Account.
Clear the Account is inactive checkbox.
Click Save & Close.

Once done, you can now merge the two undeposited funds to keep your lists and transactions accurate. You may refer to this article to see the steps on how to perform the process: Merge list entries in QuickBooks Desktop.

Lastly, you may open this article to view different details on how the accounts in the Chart of accounts page give you various account types to categorize transactions: Learn about the chart of accounts in QuickBooks.

If you have any other questions about exporting/importing IIF files, please let me know by adding a comment below. I'm more than happy to help. Keep safe!

Sign up

Login with SSO

Login to the community

Login with SSO