When you receive payments, use a payment item on an invoice, or enter a
sales receipt, QuickBooks knows you've received money. 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 Payments 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. Any payments you
receive from customers automatically go into this holding account until you
deposit the payment into a QuickBooks bank account. 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. 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?
Don't use undeposited funds if you use the QuickBooks Merchant Account service.
Set your Payments preferences to always use the Undeposited
Funds account as the default Deposit To account. 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.
QuickBooks enters transactions in the Make Deposits window. When you save the deposit, the amount is transferred from the Undeposited
Funds account to your QuickBooks bank account.
Viewing funds in
the Undeposited Funds register
Renaming the Undeposited Funds
Editing or deleting a deposited
Depositing money from a
refund (not customer related)