Using the Undeposited Funds account
Using the Undeposited Funds account
When you receive payments, use a payment item on an invoice, or enter a
sales receipt, QuickBooks knows you've received money. chart of accounts, Undeposited Funds account, deposits, undeposited funds, . When you record each
payment, you can choose how you want QuickBooks to handle the deposit.
You can do one of the following.
Use the Undeposited Funds account as the default: If you
set your Sales and Customers preferences to always use the
Undeposited Funds account as the
default deposit to account, you will not see the "Deposit to" option
on the Receive Payments or Enter Sales Receipts windows. chart of accounts, Undeposited Funds account, deposits, undeposited funds, . Any payments you
receive from customers automatically go into this holding account until you
deposit the payment into a QuickBooks bank account. chart of accounts, Undeposited Funds account, deposits, undeposited funds, . The Undeposited Funds
account acts as a holding account, similar to holding money in a drawer until
you make a deposit to your financial institution.
Use the "Deposit to" option to deposit the payment
directly to a QuickBooks bank account: If you choose this option,
funds are transferred immediately to the bank account. chart of accounts, Undeposited Funds account, deposits, undeposited funds, . The funds do not appear
in the Undeposited Funds account and you do not need to deposit them using the
Make Deposits window.
Which method should I choose?
Basic steps for using the Undeposited Funds account
Set your Sales and Customers preferences to always use the Undeposited Funds
account as the default Deposit To account. chart of accounts, Undeposited Funds account, deposits, undeposited funds, . Then, any payments you receive from
customers automatically go into this holding account until you deposit the
payment into a QuickBooks bank account.
When you deposit the money you
will first see the Payments to Deposit window, which lists all the transactions
in the Undeposited Funds account.
Select the transactions you want to deposit and click OK. chart of accounts, Undeposited Funds account, deposits, undeposited funds, . QuickBooks enters
transactions in the Make Deposits window. chart of accounts, Undeposited Funds account, deposits, undeposited funds, . When you save the deposit, the amount
is transferred from the Undeposited Funds account to your QuickBooks bank
account.
Related topics
KB ID# 888284