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Undeposited Funds is a default account in QuickBooks that holds funds from payments to your company until you deposit them to your bank account.
Go to the Edit menu and then select Preferences. Select Payments from the list. Then go to the Company Preferences tab. Select and uncheck the Use Undeposited Funds as a default deposit to account checkbox.
Suggested clip How to clean up Undeposited Funds in QuickBooks Online - YouTubeYouTubeStart of suggested clipEnd of suggested clip How to clean up Undeposited Funds in QuickBooks Online - YouTube
Enter Transactions With Undeposited Funds Click the "Lists" menu, and then select "Items." Select the type of payment from the "Type" drop-down menu, and then add any additional information for the transaction. Click the "Account" drop-down menu, select "Undeposited Funds," and then click "OK."
Here's how: From the Chart of accounts, select Undeposited Funds. Locate the deposit or the payment you want to delete. Click the Edit menu and select Delete Deposit/Payment/Sales Receipt.
Undeposited Funds is an internal other current asset account created by QuickBooks Desktop to hold funds until you are ready to deposit them. It serves as the default Deposit To account when you receive payments, use a payment item on an invoice, or enter a sales receipt.
The Undeposited Funds account serves as the default "deposit to" account when you receive payments from Invoices, use a payment item on an invoice or enter a Sales Receipt. It's designed to work with the receive payments and bank deposit features to complete the invoicing process.
Suggested clip How to clean up Undeposited Funds in QuickBooks Online - YouTubeYouTubeStart of suggested clipEnd of suggested clip How to clean up Undeposited Funds in QuickBooks Online - YouTube
Click (+) icon at the top-right. Click Bank Deposit under Other. Select which account in the dropdown to move the funds to. Select the Payments to move. Click Save and new at the bottom right.
Undeposited Funds on Balance Sheet. Undeposited Funds is a special account created by QuickBooks as a clearing account for payments that have been received but not yet deposited into the bank account. The easiest way to picture this account is as the top desk drawer.
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