Always keep in mind that your goal when recording a bank deposit in QuickBooks is to match what you record to what you actually deposit. That means matching the transaction date, the amount, and the bank account to which you make the deposit.
The steps to make a bank deposit in QuickBooks depend on your setting of the Undeposited Funds preference.
For most QuickBooks users, the Undeposited Funds preference is enabled, so we’ll cover that scenario first.
Enabling the Undeposited Funds preference means that your default “deposit to” account is your Undeposited Funds account. Customer payments and sales receipts are temporarily accumulated in the Undeposited Funds account until you combine them into one or more bank deposits. Funds reach the Undeposited Funds account in one of 3 ways:
- recording a customer payment on the Customers->Receive Payments menu selection
- recording a Sales Receipt
- recording a General Journal entry
Funds in the Undeposited Funds account are combined into a bank deposit on the Banking->Make Deposits menu selection. If you select this menu choice and your Undeposited Funds account contains transactions, QuickBooks will automatically open the Payments to Deposit window, as shown nearby.
This window will contain all items available to deposit. In this window, choose the item(s) that actually make up the bank deposit being recorded. In our example, we chose 1 item. Buttons are available to Select All items and Select None, which performs an “undo” function. When you’ve selected the item(s) to deposit, click Ok to return to the Make Deposits window. If you want to change the items selected from among the available items to deposit, simply hit the Payments button at the top of the Make Deposits window. If your deposit will only contain items from the Undeposited Funds account, it’s a good idea to verify that the Payments Subtotal matches the amount of the deposit.
In addition to items gathered from Undeposited Funds, you can include other deposit items, as well as deductions for fees, such as incoming wire fees. You always want to have the amount of the deposit match the amount recorded by the bank. If your bank combines a fee with a gross deposit and records a net deposit amount, you’ll want to include the fee on the Make Deposits window. If your bank records a gross deposit and a fee as 2 separate transactions, you don’t want to include the fee on this window. In our example, even though we’re depositing 1 check, we’ve added a $10 bank service charge expense to demonstrate how a deposit deduction is recorded.
You can also receive cash back from a deposit, which will be deducted from the deposit. You should only use this feature if your bank reports the net amount of the deposit as 1 transaction. If you use these fields, you’d normally enter a petty cash account (effectively a transfer), an expense account (such as a travel advance), or an equity account (a return of equity). While recording cash back from a deposit on the Make Deposits window can save a step, we generally discourage using this method. It’s preferable to record the gross deposit and cash withdrawal separately because you’ll preserve more transaction details of the cash withdrawal by doing so.
Before saving the deposit, confirm the Deposit To account, the transaction Date, and the Deposit Total match your actual bank activity. Optionally, you can record a Memo for the deposit.
Once you’ve verified the deposit details, click the Save icon, the Save & Close, or Save & New button.
You can also print a Deposit Slip and a Deposit Summary from the Print icon. If you opt to print information associated with the deposit, QuickBooks will first save it. A Deposit Summary is simply a summary report of the items and cash back (if any) on the deposit.
A Deposit Slip is designed to work with pre-printed QuickBooks deposit slips to automate the step of filling out a deposit slip form before you take the deposit to the bank. However, using a pre-printed deposit slip imposes some restrictions on the deposit function: all deposit items must have a Cash or Check payment method, and every deposit item must have a positive amount. The screen shots below illustrate these restrictions.
Recording a deposit if you don’t use the Undeposited Funds account follows most of the procedures described above. If you previously had the Undeposited Funds preference enabled and disable it while you have items in the Undeposited Funds account, QuickBooks will automatically open the Payments To Deposit window. If there are no transactions in the Undeposited Funds account, QuickBooks will present the Make Deposits window and allow you to manually enter the items for a deposit.
For each deposit item, you’ll specify who provided the funds (Received From), the general ledger account (From Account), any applicable Memo, the Chk No., the payment method (Pmt Meth.), and Amount. If class tracking is enabled, you’ll be able to specify the Class for each deposit item as well.
Once you’ve verified the deposit details, click the Save icon, the Save & Close, or Save & New button.
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I have made a deposits and accidentally included the items which should not have been included and accidentally saved it. If I delete the deposit made and remake it again using the same invoices of those deleted deposit.
Keysa
I have an interesting scenario. I made an overpayment on a bill in Quickbooks. In quickbooks, I am showing a positive amount of $4,000.00 on the vendor profile. I was sent a check in the amount of $4,000.00 from the vendor as a refund of the overpayment. When I add a deposit of the $4,000.00 to the same vendor under the same expense, the deposit appears in the vendor profile but does not reflect on the ledger. It still shows that I have a positive balance of $4,000.00. Do you know why this is or why the deposit is not reflecting correctly?
When i go to make deposit screen through the sales reciepts done automaticlly from qb interprises. I have five diffrent customers with diffrent currencies . But only one bank account. When i mark the reciepts it gave me an error that the customer currency is differ than the bank currency.. how to solve this please i have a hll of rrciepts still pending cuz of it 🙁
In our test in US QB, that worked fine with 1 important note – you have to deposit each currency separately. In QB, a sales receipt behaves differently compared to an invoice with a customer payment. For an invoice to a customer using a foreign currency, the payment is converted to your home currency and appears in the Make Deposits window as your home currency. Therefore, you can receive payments from 5 customers using 5 different currencies, and QB can deposit them in 1 deposit because they are in your home currency. For sales receipts, it appears that QB is converting the sales receipt payment to your home currency when you make the deposit, so there’s a single exchange rate. Therefore, you can’t mix currencies when you deposit sales receipts in the way you can with regular customer payments. If you make each foreign deposit separately, everything should work.
Other way around . Can i create a new clearing accoubt with same home currency then to deposit to it from make deposit screen after marked the reciepts . Then transfer it by journal enrty and keep the bslance if this clearing account as zero.
is it correct way ? Proficional or not ?
Your comment isn’t completely clear. Using clearing accounts is a fine solution if that helps. In QB, there are often many ways to get to the same goal, and there are pros and cons to each of them. If the method you adopt allows you to record the deposits and it reflects what took actually took place with reasonable accuracy, then it’s a reasonable choice.
Thank you very much. Appriciate your help my dear 🙂
Is there a way, and if so how, to get an old deposit summary. I Didn’t print it and need to and I can’t seem to find it.
Try the Reports->Banking->Deposit Detail. The format won’t exactly be the same, but it should do the job. Once there, you can double click on the deposit in question, and visit the Reports menu for that specific deposit and reprint the exact summary from there.
Hi,
The facts: are two companies separate. In one company I transfer the money as an Income.
What entries can I make in the second company that shows as an expense? Thank you. E
I work with several companies to help clean up their QuickBooks. in the Make A Depoist some have the sort payment by and some do not. They are all using 2013. I am not able to figure out what to do to get the sort payment on all.
Thank you
Here are a few things to check: 1) Is there a difference between Pro & Premier? In our tests on the latest release in Pro, the sort function appeared; 2) You say all the companies are using QB 2013, but are they all on the same release? Press F2 in QB to verify the release. We only have the latest release installed, and it works on that release; 3) Do the companies where it does NOT display have multiple payment types defined? You still should see a pull down to sort by date, but it’s possible the pulldown is only triggered if multiple payment types are defined.
I just got an temporary work assignment for a company whose full-time employee has been on medical leave for over a month. The owner decided to bring in help in her absence to help with the bank reconciliations from January 2012 til November 2012 and into December year close. The problem is that I am not familiar with how to post deposits and credit card payments that appears on the bank statement into QBKS, so that I may ‘check mark’ the transactions or funds as CLEARED when reconciling to the bank statement. How do I approach this matter and learn what to do. The owner of the company doesn’t know anything about what the accounting person processes are when reconciling the bank statement.
For starters on deposits, read our article on the undeposited funds account. You’ll want to understand if the firm uses that account. You can also check a balance sheet for the existence of that account and whether it has a non-zero balance. A non-zero balance means that customer payments have been recorded, but have not been grouped and posted as deposits. Next, before trying to reconcile the bank account, take a look at A/R. Have all the payments been entered? Print an A/R report and ask the owner if it appears to be accurate. If customer payments have been entered, the next step might be to attempt a reconciliation for January 2012. You can save your work or cancel the reconciliation depending on which course of action seems best. If the firm uses the undeposited funds account, then payments would be grouped into deposits using the Make Deposits function, which is covered in this article. If the deposits for January have already been recorded, they’ll appear in the reconciliation window. If the payments have been recorded but not turned into deposits, those payments would be in the undeposited funds account, and you can see them by clicking the Payments button in the Make Deposits window.
For credit card payments, since you raised this in the context of deposits, I’ll assume you are referring to customer payments made by credit card. For these payments, you’ll use the same approach of clicking the Payments button to group all credit card payments that make up a bank deposit. However, that will be the gross amount of the deposit; the firm’s merchant service likely deposited the net amount after fees and other deductions. For the deduction, you enter that as a negative amount on the Make Deposits window, usually to an expense account such as credit card processing fees. The amount of the deposit should match exactly to what is shown on the bank statement. You can have multiple deductions on a deposit to match the detail of its credit card processing fees that the business wants to capture.
With so many statements to reconcile, it can be easy to get discouraged. Don’t let that happen. Each statement you reconcile will make reconciling the next statement easier, because there are fewer unreconciled transactions to sort through. QB makes it easy to minimize the reconciliation window and add or edit transactions needed to complete a reconciliation. You can also save your work if you find a lot of unanswered questions in a particular month.
Follow the principle that the transactions in the bank register should match exactly what’s shown on the bank statement. The business owner has to understand that completing reconciliations takes longer when they’re not done shortly after a month ends or when there many months to reconcile. It’s important for you to set realistic time expectations. We’ve completed many of these “cleanup” projects, and when asked how long it will take to reconcile 1 month, our reply is that it will take however long it actually takes. Until you fully understand how accurately and completely transactions have been recorded, you’re not in a position to give a more precise time estimate, so don’t make the mistake of being too optimistic.
If you run into glitches, try using the search function to see if we have a relevant article; if not, post a new comment. Best of luck.
i issue a check for 1,231.29, that check was cashed by a cashier company, but then the check had a stop payment, so in my statement appear in Deposit and Credits 1,231.29.
and in withdrawals also 1,231.29. what i dont know is how to deposit into my account that Return posted check. Thanks
The check you wrote should already be in your register, so the only question is how to record the bank refunding the check for your stop payment.
To do that, record a deposit to your checking account using the Banking->Make Deposits function (discussed in this article) and specify the From Account as the same account you used when you wrote the check.
There was a small fundraiser where I work, which I didn’t know about, and the person in charge of collecting the donations didn’t give me the money to deposit until over a month later. Unfortunately, she spent most of the money on business supplies and she plans to keep part of the balance as petty cash to purchase additional supplies as they are needed at which time she will bring me those receipts and I will have to reimburse her for that money. How do I record the amount she’s keeping and the amount she spent into QB as income?
It depends how on how you book income. If you are using the undeposited funds account, use your normal approach to record the total amount of the donations, just as you would if you had received the full amount. When you deposit those funds, you’ll deposit the net amount – not the gross. To do that, select the gross amount to deposit and then add multiple line items with negative amounts, to record the amount that you didn’t receive. That will reduce your deposit to the net amount that you are actually depositing.
The deductions will be to the expense account you use for the business supplies purchased. I don’t understand your comment that she is keeping a portion of the funds for additional purchases, and when she brings you the receipts, you’ll have to reimburse her. She was already reimbursed by keeping the donations in the first place. If she does not anticipate spending all of the money she is keeping and returning some of it to you to deposit later, you can make one of your negative deposit line items go to an asset account, such as advances to staff. When she returns the unspent funds, you can record a general journal entry for the expenses and return the unspent funds to the bank account.
As of 10/4/12 my customer payments are not showing in the PAYMENTS TO DEPOSIT window. I’m using Quickbooks standard 2010. I’ve confirmed the PAYMENT DATE and DEPOSIT TO bank account are both correct when the payment is applied. I have checked and rechecked both these areas to confirm. I’m unable to find and select the payments in the PAYMENTS TO DEPOSIT window to make a deposit confirmation (slip). What am I doing wrong?
For starters, check your preferences. Visit the Company Preferences tab on the Payments menu of Edit->Preferences, and make sure the Use Undeposited Funds as a default deposit to account preference is checked. In order for you to select payments to deposit, you have to have this preference checked.
Next, search for a payment that you recorded and find out which account was debited. When you record a payment, A/R is credited and another account is debited. If that is account is undeposited funds, you can use the Make Deposits function as you expect. If those payments ended up in another account – such as a bank account, then Make Deposits won’t function as you expect.
If the preference is set and the funds are in an account named Undeposited Funds, there is another possibility that would explain the behavior. QB uses special account types for some accounts, and the Undeposited Funds account is one of those special accounts. The name by itself does not give the account its special function. It’s marked in a way that is not visible to a QB user. If you inadvertently deleted or altered your special undeposited funds account and then recreated it in name only, it wouldn’t function as the name suggests. There are ways to diagnose and repair that, but before going there, let’s hope that the previously outlined checks solve your problem.
Question: Inadvertantly two deposits that had cleared previously are now not marked cleared which changes the beginning balance to an incorrect amount. How do I mark these two deposits as cleared so my beginning balance will be correct?
Open your bank account register, find the deposits, and mark them cleared by clicking in the column that would contain a check mark for reconciliation status. QB uses a check mark to indicated cleared and an asterisk to indicate that it is marked as cleared in a pending reconciliation. You may have to make multiple clicks in the column to get the check mark to appear because you are in effect stepping through the different reconciliation options. Once you move to another transaction in your bank account register, you’ll have to save those changes.
When you complete your next reconciliation, those items should appear, but they’ll be marked as cleared and you should be able to complete your reconciliation normally.
Once in the “make deposit” window, ready to print; how do you amend the deposit? I had 30 deposits and only allows 18.
Thank you!
Is the 18 a limit imposed by your bank? You can have more than 18 line items on a QB deposit, and when printing a deposit slip or deposit summary, QB should handle multiple pages, provided that you’re using blank paper. If you’re using pre-printed forms, there’s a decent chance that won’t work, though. Therefore, if that’s your situation and you want to remove line items from the deposit, put your cursor on a line item and hit Ctrl + Del. You can repeat that until you get the right amount of lines. That key combination works on all QB forms.
I’m on QBES8.0, making my first deposit. I can only get QB to give me 14 lines to make a deposit. We have more than 14 items to deposit, so I need to know/understand how to enter more than 14 items. When I press the Enter key, it saves the deposit, meaning I have to VOID it. When I press the down arrow key, it saves the deposit, meaning I have to VOID it. Can you please help me figure this out? Thank you, Linda
Sigh. Figured it out. Actually someone else figured it out for me. I have to press the Tab key to get new lines. Maybe this is the problem the OP had, too.
Hmmm…that’s unusual. The function of the Enter key is determined by your preferences. See Edit->Preferences. However, the down arrow key should move to a new line without saving. The current version of QB supports many more than 14 items on a deposit, but QB ES 8.0 is old enough that we no longer have it installed to test.
Please help me with some problems …
1) I have received bank statement and found out that several transaction has been made from my customer through GIRO (Direct Debit) or money have been deposited into my company’s account.
2) How to record fixed assets invoice ?, the goods that my company bought is through hire purchase and pay by monthly GIRO payment to the supplier.
Could you help me the full steps to update into my Quickbooks Premier 2007/8 ??
Hope you can help me solve this problems… many thanks… cheers!!
Pamela
For your first question, you can use the Make Deposits function to record the deposits. For the charges to your bank account, use the Write Checks function.
As for your second question, the answer depends on what you mean by a “fixed assets invoice”. Goods that you normally re-sell would be considered inventory, not fixed assets. A fixed asset would be a long term asset, such as machinery or equipment, used to operate the business. In either case, you’d set up a QB Item on the Lists menu. For an inventory item, set up the item along with the sales account to which revenues go. It’s important to create a receipt for this item before you sell it; otherwise, your inventory quantity will be negative.
For selling a fixed asset, you can create an Item too. Use an offset account as the fixed asset account where the value of the asset you are selling is kept. When you create an invoice for this item, the value of your A/R will go up, and the value of your fixed assets will go down.
Hope that helps.
We have a small business. In August we sold four items for $45 each totalling $180. In October we bought one of those items back with a check for $45. That check was sent to the bank and deposited as a credit for $45 at the bank. How do we enter that into quickbooks so that it will reflect a $45 credit to the deposit account and show that item returned back to our inventory.
I did send this comment to your site yesterday and it disappeared!
Thanks for your help.
Dean
Dean – First, comments are moderated due to the large amount of spam we receive. That means until you have your first comment approved, it takes a little longer, especially on weekends, because it requires human intervention. After that, things get quicker.
As to your question, let’s summarize what took place. If our understanding isn’t accurate, let us know. You sold merchandise for $180 (the merchandise sale). You accepted a return from your customer for $45 (the return). You gave your customer a check for $45 for the value of the return (the refund).
For the merchandise sale, you use an invoice or sales receipt. That takes stock out of inventory and creates either an A/R balance (the invoice) or reflects the customer paid for the merchandise in full (the sales receipt). For the return, you use a credit memo by clicking Create Credit Memo/Refund on the Customers menu. You record the item returned, and that puts it back in stock. If you have any restocking or other charges, you enter those as other charge items on the credit memo. When you save the credit memo, QB will ask whether you want to leave the credit as an available credit, give the customer a refund, or apply to another invoice. In your case, you refunded the money, so you’d choose Give a refund. If you want to change your selection at a later date, just open the credit memo, and click the Use Credit To button at the top of the form. When you choose to give a refund, QB will automatically open a window confirming the details of the check. By default, the refund check is marked To be printed, because QB assumes you’ll print these refund checks later, when you print other checks. If you’ve already given the customer the refund check, you can clear this check mark, record your check #, and the check will appear in the register for the bank account you selected.
You only know that your customer deposited your refund check because it cleared the bank (unless you are both the vendor and the customer), so when you reconcile your bank account the refund check will be there, along with all of the other deductions and additions.
Hope that helps.
As owner of my LLC I initially I funded capital on several occasions to cover start up costs. How do I record these deposits so they show up in the register so I can balance my bank statement? I tried the Make Deposits under Banking but that deposit won’t show in the register. I made a “client” called Owner to show these deposits and subsequent draws, but I’m sure that’s not the right way to do it. I still can’t get the deposits to show up in the register. It should be classed as owner equity I think.
The Make Deposits function is the right choice. Double check that the Deposit To account that is selected is the bank account you want to use; if not, you can change this by editing your preferences. Deposits you make there will show in the bank account register if you made them to the right bank account. When you make the deposit, choose an Equity account for the capital you funded. It’s not a good idea to make a customer/client for these deposits. However, for draws, you can create a Vendor for yourself as owner. You’ll need to check with your accountant to determine if the draws are returns of the capital you contributed, a salary, or a combination of both. Using that vendor account, you can write a check to yourself, with an offset account based on your accountant’s advice.
I’m using QB Enterprise. When positing payments, we have a customer that pays several invoices on one check and then issues a debit against that check for an item that is in the process of being returned. If we had already received the return I would have issued a credit memo then apply that debit against it and post the payments, no problem. Since I haven’t received the return yet I can’t issue the credit memo so the check is short the amount of the debit. How can I credit each invoice as listed on the remittance and make it match the bank deposit?
You always have 2 options. First, you can record the exact amount of the payment but don’t apply it to any open invoices. QB might attempt to apply the customer payment, but just uncheck the invoices it selects. If you opt for this choice, use the memo field on the payment to note the invoices the customer marked to pay, since you aren’t applying the payment now and you might not have the remittance advice handy when you do make the application. The second option is to apply the payment to the invoices on the customer’s remittance advice so that as many as possible are paid in full, and 1 or 2 invoices (depending on the size of the customer’s deduction) are left unpaid or partially paid. In either case, when you receive the returned goods, you create a credit memo, and complete the payment application. The second approach completes more of this work initially; the first approach leaves more of it for when you create the credit memo. For cases of infrequent returns, some prefer the first approach because the full unapplied payment on A/R reports is a good reminder that the return requires resolution. Where returns are frequent and get resolved, the second approach is probably better. Whether you apply a customer payment to invoices or not, as long as you always enter the payment for the amount received, your payments will always match your bank deposits.
About a month ago we started to use QB pro 2011.I need to record the bank deposits from the past months and last year, . Those deposits are paying for invoices that are not registered in QB. How can I do this deposits to update the bank account?.
Claudia – Normally, you wouldn’t do that. You choose a start date in QB, and you record starting balances as of that date and all transactions after that date. You can’t selectively record transactions after the start date, because your accounts won’t balance. For example, if you started to use QB on 7/1, you should record all of your starting balances of 7/1 (such as bank balances and A/R balances), and all transactions (bank deposits and customer payments) on or after that date.
I think I know what Claudia means. I just began to use Quickbooks in January 2013 (my quickbooks startdate is jan. 1, 2013); I’ve received many payments from customers, in which invoices were obviously not billed in Quickbooks but using an old fashioned spreadsheet. I placed my ending balance or opening balance, and then imported my bank statement beginning with the transaction that my bank statement ended with. I had a deposit for about $5K (a deposit received after my start date) which was made up of many customer payments. I placed each line and amount until i reached the 5K deposit amount. so I had about six lines of customer a with X amount, etc.; which made up one deposit. I chose account “accounts receivable” and Quickbooks stated that I cannot have more than one accounts receivable in one transaction! So, I listed under sales because it won’t let me save the transaction until I choose an account! Please help! this is very frustrating. Also, I just entered my first sales receipt, and I too cannot find the “Payments to Deposit” window; i entered sales receipt (to undeposited funds account), recorded deposit, make deposit, yet nothing in the make deposit window. I can see the transactions and account of ‘undeposited funds’ when I go to “Use register”.
Your initial approach to setting up the company file wasn’t ideal. For A/R and A/P transactions that occur before your QB start date, the best approach is to record these by GJE or by using a QB form. To use a QB form to record an A/R transaction before your start date, you create a new Item that points to an Equity account. Then, you use Create Invoice to invoice each customer for each open invoice (or, if you want less detail), the open balance, using the Item that points to an Equity account. That way, you don’t double-count sales. That makes it easy to record payments and deposits for A/R transactions that occurred before your start date.
Since you didn’t do that, I recommend you use a general journal entry to record each of the line items of your $5k deposit individually. The first line of each GJE should be a credit for that customer’s to payment to your A/R account; be sure to specify the customer in the Name column. The offsetting debit should go to your Undeposited Funds account. Then, use the Make Deposits function to record your deposits normally.
Regarding your comment that you recorded a Sales Receipt, made a deposit, and then saw nothing in the Make Deposits window, that might be the way it should be. After recording a Sales Receipt, the funds should be in your Undeposited Funds account. If you’re new to using QB, it’s a good idea to check if that happened at that step. Then, go to Make Deposits and deposit those funds to your bank account. (Obviously, you have to actually make the deposit at your bank as well.) At that point, those funds should be gone from your Undeposited Funds account, so if you have no other deposits to make, your Make Deposits window will not show any line items when you click on the Payments button.
Is there any way to modify the fields that show up in the Payments to Deposit window? With the process my church uses, seeing the Memo field for payments/donations is critical to make this process work well. I cannot find out how to add another field to the default view.
Unfortunately, there isn’t a way to modify the fields in the Payments To Deposit window. One common technique is to “hijack” the functionality of another field to serve your purpose, but there doesn’t seem to be a good candidate to do that. All of that leads me to the question: why do you need to see the Memo field? I’ll take a guess that the Memo field drives your decision about which bank account should receive the deposited funds. If my guess is correct, the workaround is to design a report showing the payments in your undeposited funds account that are waiting to be deposited. QuickBooks uses the Cleared status to mark records in the undeposited funds account that have been deposited. So you can create a Custom Transaction Detail Report with filters that: cover all date ranges, only show the undeposited funds account, and only show uncleared transactions. You can then control which columns that show up on the report, and one of those columns can be the Memo field. If you memorize the report and run it just before making deposits, you’ll have the information from the Memo field handy, even though it is not in the Payments To Deposit window.
Hope that helps.