How to Make a Deposit in QuickBooks Online and Desktop?

When putting the payments physically in your bank, you may deposit several payments from different sources such as checks and some cash for a total of $100 (US). The banks record such payments either as one single deposit of $100 (US) or record the cash and checks separately. In QuickBooks, users record the deposit to match the bank statements. If the bank records several payments as one single deposit then you will have to do the same in your QuickBooks account. On the other hand, if your bank records the payments separately then you will have to write each entry separately. To get more details, learn here how to make a deposit in QuickBooks Online and QuickBooks Desktop.

How Do I Make Deposits in QuickBooks Online?

To make this procedure simple, QuickBooks offers a Bank Deposit feature using which you can combine your payment together into one bank deposit record. All you have to do is put the sales receipts and invoice payments you want to group together into the Undeposited Funds account. Once done, you can combine them together on the Bank Deposit window. After that, move every single bank deposit into the account. This process will ensure QuickBooks matches your bank records. As a result, it makes your account reconciliation process easier.

For your convenience, we are explaining each step for recording deposits in QuickBooks. Learn with us how to make a deposit in QuickBooks Online:

Step 1: Put Your Transactions into an Undeposited Funds Account

To know how to make a bank deposit in QuickBooks Online, the first step is to add sales receipts and invoice payments that you want to group into the Undeposited Funds account. This particular account contains all the payments you might want to combine while recording the deposits.

Please Note: If you are already using the QuickBooks Payments then you don’t have to enter the payments in Undeposited Funds as QuickBooks will take care of the invoice payments.

If you want to combine the payments that are processed outside of QuickBooks Payments, you can do it easily. Find the details below:

Group the Payments Made Outside of QuickBooks Payments

• Click on the “+New” button.
• Then, go to the “Receive Payment” option.
• Here, you can choose the customer using the “Customer” drop-down menu.
• Now, click on the checkbox for your invoice for which you are receiving the payments.
• After this, move to the “Deposit” drop-down menu and choose the “Undeposited Funds” option.
• Once done, you can enter the details in the forms.
• Then, save the information by clicking on the “Save and Close” button. If you want to add more entries, click on the “Save and New” button. To send the details directly, you can click on the “Save and Send” button.

Sales Receipts for the Payments Processed Outside of QuickBooks

• Click on the “+New” button.
• Choose the “Sales Receipt” option.
• Then, start selecting the customer. The “Customer” drop-down menu can be used here.
• Here, you can choose the “Undeposited Funds” using the “Deposit to” drop-down menu.
• Once done, click on the “Save and Close”, “Save and New”, and “Save and Send” buttons as per your next action.

Make sure you review the Deposit to fields to know where your payment is going. Also, remember if the bank records your single payment as a deposit then you don’t have to combine it. Rather you can add the payment into your account directly in QuickBooks and skip the Undeposited Funds account.

Step 2: Group Transactions in Your QuickBooks using a Bank Deposit

Each bank deposit makes a separate record in QuickBooks. You have to make sure that you create one deposit at one time for every deposit slip. Here are the instructions to create the bank deposit in QuickBooks Online:

• Click on the “+New” button.
• Then, choose the “Bank Deposit” option.
• Use the “Account” drop-down menu to click on the account in which you want to add the money.
• At this point, you need to click on the checkbox for transactions you wish to combine together.
• Now here, you need to be sure about the total of transactions. All the selected transactions should match with the deposit slip. You can use the deposit slip as your reference.
• Press the “Save and New” and “Save and Close”.

As you add the transactions in the Undeposited Funds account, they will display on the Bank Deposit window. In case you don’t find the one you want to add then add it to the Undeposited Funds account. Now, you have learned how to make bank deposit in QuickBooks Online.

Please note that some banks charge processing fees. If that is the case then make sure you don’t edit the original transactions rather enter the fee on the Bank Deposit window. Besides that, you can manage your bank deposits such as reviewing your past bank deposits, removing the payment from the bank deposit or delete the entire bank deposit.

How to Make a Deposit in QuickBooks Desktop?

The process of making a bank deposit in QuickBooks Desktop is quite similar to QuickBooks Online. After you deposit payments from several sources, your bank records them as one single record. If you add these entries as individual records, they will not match the deposit. That is when you require to combine all the records so they can match the real-life bank deposits.

To get started with how to make deposits in QuickBooks Desktop, all you have to do is put the transactions that need to be combined into the Undeposited Funds account. Thereafter, you can record the bank deposit to complete the combining process. For step by step guide, you can go through the following steps:

Step 1: Add Payments into Your Undeposited Funds Account

If you have not put any transaction into the Undeposited Funds account, you can add it now. Make sure you only put the transactions that you need to combine. Please remember if you are using the QuickBooks Payment feature then you are not required to use the Undeposited Funds account as QuickBooks will take care of the payments. You just need to review the work.

But, if the invoice payments and sales receipts are processed outside of QuickBooks Payments then you need to perform a number of steps. Here, we will show you how to create the sales receipt. Before you can choose the account in which you want to put the payments. Here we go:

• Click on the “Edit” menu.
• Choose the “Preferences” menu.
• Click on the “Payments” from the list.
• Switch to the “Company Preferences” tab.
• After this, you have to make sure there is no checkmark for the “Use Undeposited Funds as a default deposit to account” option.
• Press the “OK” button.

Now, users can easily choose Undeposited Funds or other accounts every time they make a new sales receipt. To create the Sales Receipt, you can perform the following steps:

• Go to the “Homepage” and click on the “Create Sales Receipt” option.
• Click on the “Customer” drop-down menu to choose the customer.
• After this, click on the “Deposit to” drop-down menu to choose the “Undeposited Funds” option.
• Continue entering the details in the fields.
• Once done, select the “Save and New” or “Save and Close” button.

It is suggested to review the Deposit to fields to know where your payment is going. Also, make sure if the bank records only a single payment as a deposit then you don’t need to combine it. Rather you can add the payment into your account directly in QuickBooks and skip the Undeposited Funds account.

Step 2: Record Bank Deposits in Your QuickBooks to Combine Payments

Once you get the deposit slip from the bank, you can continue recording the deposit in your QuickBooks account. This will combine all your payments. Here are the steps for that:

• Go to the “Homepage” and choose the “Record Deposits/Make Deposits” option.
• Then, go to the “Payment to Deposit” window and choose the payments you wish to combine.
• Press the “OK” button.
• From the “Make Deposits” page, you can choose the account into which you want to put the deposit. For this, you can use the “Deposit to” drop-down menu.
• After this, you can review the total deposit. Also, make sure the selected payments and accounts match the deposit slip given by your bank. You can use the deposit slip as your reference.
• Now, you can enter the date on which you made the deposit at the bank.
• If required you can add a memo.
• Click the “Save and Close” button.

Each bank deposit entry is a separate record. You can make one deposit at a time for every deposit slip. This should be noted that the only transactions in the Undeposited Funds account will display on the Bank Deposit window. In case you don’t find the one you want to add then add it to the Undeposited Funds account.

Besides that, you can deposit your payments into two separate bank accounts. If you want to add the payment into an account other than a Bank Account, this can be done easily. QuickBooks allows you to manage bank deposits. For instance, you can review the old bank deposits, delete their bank deposits or record the recurring deposits.

Conclusive Words

Your bank often records your payments as one single deposit even when you put the payment from different sources at once. It is necessary to combine all the records so they can match the real-life bank deposits. Here, we have explained how to make a deposit in QuickBooks Online and QuickBooks Desktop. After adding the deposit, you can view the transactions in the Bank Deposit screen.

If you want to adjust the payroll liabilities or map the 1099 accounts in QuickBooks, we have prepared curated guides on them. Read them before performing any actions:

• How to Map 1099 Accounts in QuickBooks Desktop?
• How to Adjust Payroll Liabilities in QuickBooks?