What is the Undeposited Funds account?
When you receive cheque payments on a particular day, instead of doing receive payment in QuickBooks directly to a bank account for each individual cheque, you receive the payments to the Undeposited Funds account.
When you go to Make A Deposit, you check off all the payments that you are putting on the bank deposit slip.
When you go to the bank and deposit several cheques, the bank will give you a receipt for the total deposit. This is the total that will show up on your bank statement and will match when you reconcile.
If you don’t group the cheques together as one deposit, you will need to manually add up the cheques from the register to match what is on your bank statement when you reconcile the account.
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Receive payments like you normally do. At Deposit To field make sure you have Undeposited Funds selected.
1.Click on Customers -Receive Payment.
2. At Deposit To field make sure you have Undeposited Funds selected.
3. Once you have completed receiving payments, click on Other-Bank Deposit.
4. At the Deposit screen Select Existing Payments to match your bank deposit for that day.
5. Make sure the Amount matches the Selected Payments Total.
6. Click on Save & Close to deposit.