The Ultimate Guide to Deposit Undeposited Funds in QuickBooks Online
                     Learn How to Deposit Undeposited 
Funds In QuickBooks Online
Do you want to deposit undeposited funds in QuickBooks Online? 
This blog will help you learn about the topic in detail. If you see 
undeposited funds in your chart of accounts without knowing much about 
them, we will help you learn more about them and take a detailed look at 
them. This particular account holds significance as it serves as a temporary 
repository utilized by QuickBooks for storing received payments from 
invoices until they are deposited into the bank. Think of it as the equivalent 
of the blue bank deposit bag commonly employed by businesses to hold 
cash, checks, and other forms of payment before they are officially 
deposited into the bank. Undeposited Funds are automatically set as the 
default "Deposit to" account when receiving payments from invoices or 
using payment items on invoices. If you receive multiple payments for an 
invoice and want to consolidate them into a single deposit in QuickBooks to 
match your bank statement, read the entire blog if you wonder how to 
achieve this.
How to Deposit Undeposited Funds in QuickBooks:- Know How

Reasons to use an Undeposited 
Funds account
• Accurately record payment receipt dates, especially when payments are 
received at year-end but clear the bank the following year.
• Facilitate grouping payments from multiple customers into one deposit, 
aiding reconciliation in QuickBooks Online.
• Compatible with all payment types (cash, check, ACH, credit card), 
except for ACH and credit card payments processed through QuickBooks 
Payments.
Undeposited Funds account alternative
• Some users may opt to post payments directly to their bank accounts, 
but this can complicate reconciliation and make it harder to detect 
errors and fraud.
• Posting payments to Undeposited Funds first and then entering deposits 
separately in QuickBooks Online is generally preferred for easy 
reconciliation and consistency in recording payments.
How to Use the  Undeposited Funds 
in QB Online
The blog explains how to utilize the Undeposited Funds account in 
QuickBooks Online. It involves initially depositing cash and check payments 
from customers into the Undeposited Funds account and then combining 
them for a single deposit into your bank account. 
Step 1: Deposit Checks and Cash into the 
Undeposited Funds Account
1. Record customer payments by depositing them into the Undeposited 
Funds account. Utilize the Receive Payment form when customers pay 
invoices and the Sales Receipt form for immediate payments.
Processing Payments for Invoices
2. To receive payment for an invoice via paper check or cash, click the + 
New button at the top left of your QuickBooks Online dashboard, then 
choose Receive Payment, and input the necessary information.
3. After providing all required details, click Save or Save and Send at the 
bottom of the screen. The payment will automatically be logged in the 
Undeposited Funds account.
Step 2: Consolidate Checks and Cash for 
Bank Deposit
1. Referencing your deposit slip, merge check and cash payments for a 
bank deposit. Click on + New and then choose Bank deposit.
2. Access the Bank deposit interface in QuickBooks.
3. Within the bank deposit form, you will encounter the following fields and 
sections: Account, balance, date, amount, and ‘select the payments 
included in this deposit.’
Step 3: Verify and Handle Deposits
• Double-check your deposits to confirm that the recorded amounts match 
the total funds deposited into your bank account. This process helps 
identify errors and discrepancies, facilitating smoother bank 
reconciliation. To accomplish this, navigate to Reports in the left menu 
bar, then choose Deposit Detail under the Sales and Customers section.
• Ensure that the deposits displayed in your Deposit Detail report align 
with your bank activity.
It is how you can deposit the undeposited funds. You can also add a 
payment to delete a bank deposit.