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Use 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. 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?

Basic steps for using the Undeposited Funds account

Don't use undeposited funds if you use the QuickBooks Merchant Account service.

  1. 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.

  2. When you deposit the money you will first see the Payments to Deposit window, which lists all the transactions in the Undeposited Funds account.

  3. 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.

See also

KB ID# H_COA_OV_USE_UNDEPOSITED_FUNDS_ACCOUNT
11/22/2014 11:12:58 PM
QYPPRDQBKSWS06 9102 Pro 2013 91175a