How to Record Deposits in QuickBooks Online & Desktop?

When you enter the transaction record in QuickBooks, it is important to make sure that it matches the total of real-life bank accounts. Adding the transactions individually can bring unexpected results. Thus, combining the transactions and updating them in QuickBooks helps to keep the record accurate. For your help, we will show you how to record deposits in QuickBooks Online and QuickBooks Desktop.

Furthermore, we will help you to delete the recorded deposits. If required, you can record other types of deposits such as owner deposit, negative deposit, cash deposit, returned deposit, credit card deposit, customer deposit, returned deposit, ACH deposits, and deposit without using an invoice.

How Do I Record a Deposit in QuickBooks?

When depositing cash at the bank, you might deposit several payments altogether. The bank records these multiple payments as one record with a total. In case you add the same payments as an individual entry in QuickBooks, it will not match the way your bank entered your deposit.

For such scenarios, QuickBooks offers a helping hand. It lets you combine all the transactions so that the transaction records can match with the real-life bank deposit. To know how to record deposits in QuickBooks Online and QuickBooks Desktop, walk through the following details

How to Record Deposits in QuickBooks Online?

To record deposit in QuickBooks Online, you need to add the transactions that need to be combined into the Undeposited Funds account. Thereafter, you can use a bank deposit functionality in order to combine them.

Step 1: Adding Transactions into an Undeposited Funds Account

First of all, you have to enter the sales receipts and invoice payments into an Undeposited Funds account that you wish to combine. The Undeposited Funds account keeps everything before you start recording the deposits.

Step 2: Combining Transactions in QuickBooks using Bank Deposit

Every bank deposit generates separate records in your QuickBooks account. Here, you can make your deposits one after another for each deposit slip. Have a look at the following steps:

• Select the “+New” menu.
• Then, click on the “Bank Deposit” option.
• After this, select the “Account” drop-down option to select the account you wish to put your money in.
• Once done, mark the checkbox for every transaction you wish to combine.
• Here, you have to ensure that the total of all the marked transactions should match the deposit slip. For reference, you can use the deposit slip.
• Now, click on the “Save and Close” button.

Please note that all the transactions in the Undeposited Funds account are shown in the Bank Deposit window. If you do not see any entry then you can enter it into the Undeposited Funds account.

Important Note: If your bank has added processing fees or service charges, make sure you do not make changes to the original transactions rather you can add the charges or fees when you are on the bank deposit screen.

If required you can review the bank deposits, remove the payment from the bank deposit, and delete the bank deposit.

How to Record Deposits in QuickBooks Desktop?

For recording deposits, QuickBooks Desktop users have to add the payments into the Undeposited Funds account. Later, you can combine the payments in order to record the bank deposits.

This should be noted if you are using QuickBooks Payments for processing the customer transactions then QuickBooks automatically generates the bank deposits. You just need to review the done work.

However, if you are not using the QuickBooks Payments, follow these steps to create the bank deposit in QuickBooks Desktop:

Step 1: Adding Transactions into an Undeposited Funds Account

If you have not already then you need to add the payments into the Undeposited Funds account you wish to combine.

Step 2: Combining Payments in QuickBooks with Bank Deposit

As your bank provides the deposit slip, you can start recording your deposits in QuickBooks Desktop. Let’s read how to record deposits in QuickBooks 2018 and other versions:

• Click on the “Record Deposits/Make Deposits” option from the homepage.
• Then, switch to the “Payment to Deposit” window. Here, you can pick the payments that need to be combined.
• Click the “OK” button.
• Go to the “Make Deposits” screen and choose an account to which you want to add your deposit. This can be done by using the “Deposit to” drop-down option.
• After that, you can check the total of the deposit. You also have to ensure that the selected payments and the accounts should match your deposit slip provided by the bank. For reference, you can use the deposit slip.
• If required, you can add the date on which you made the bank deposit.
• Later, type a memo when needed.
• Click on the “Save and Close” button.

This way you can record the deposits in QuickBooks Desktop. Remember the deposit payments can be entered into multiple bank accounts or other bank accounts.

QuickBooks also allows you to review the bank deposits, remove the payment from the bank deposit, and delete the bank deposit.

How to Delete a Recorded Deposit in QuickBooks?

If for some reason you want to start over then you can delete the bank deposits from your account. In the following information, you will learn how to delete record deposit in QuickBooks Online and Desktop:

Delete the Recorded Deposits in QuickBooks Online

• Click on the “Accounting” menu.
• Then, choose the “Chart of Accounts” option.
• After this, search for the bank account to which you wish to add the deposit.
• Now, click on the “Account history” option.
• Then, look for the bank deposit and click on it to view more details.
• Click the “Delete” button.

Delete the Recorded Deposits in QuickBooks Desktop

• Go to the “Reports” menu.
• After this, click on the “Report Center” option.
• Click on the “Banking” option.
• Here, you can search for the “Deposit Detail” report.
• Then, click on the “Run” button.
• Now, search for the deposit and open it to delete.
• Thereafter, go to the “Make Deposit” screen. Here, you will find all the payments on the deposit. You can review them and remember to start it over.
• Here, you can click on and choose the “Delete deposit” button.
• Press the “OK” button to confirm.

Remember all the payments on the deposit go to the Undeposited Funds account. After deleting the deposit, you can start all over again and make a new deposit in QuickBooks Online.

How to Record Owner Deposit in QuickBooks?

To record the owner’s contribution to the business, you need to have an equity account. In this account, you can enter the name and balance of the owner’s contribution. Let’s learn how to record owner cash deposit in QuickBooks:

• Click on the “Accounting” menu.
• Then, choose the “Chart of Accounts” option.
• Press the “New” button.
• From the “Account Type”, choose the “Equity” option.
• Click on the “Owner’s Equity” option by clicking on the “Detail Type” section.
• Here, you can go to the “Name” field and add the “Owner’s Contribution”.
• Once done, switch to the “Balance” field and add the contribution amount.
• After that, click on the “Save and Close” button.

This is how you can record the owner’s contribution into the QuickBooks account. In case of any doubts, you should contact your accountant.

How to Record a Negative Deposit in QuickBooks Desktop?

If the total of your deposit is negative then you should prepare a journal entry. This will move your funds to the bank account from the Undeposited Funds account. Once you record the deposit as a deduction from your account, you can group your journal entry with the payments to generate the $ deposit and delete the payment from the Undeposited Funds. Let us guide you on how to record a negative deposit in QuickBooks Online:

Prepare the Journal Entry

• Click on the “New” menu.
• Then, select the “Journal Entry” option.
• After this, add the “Date” of your transaction.
• When you go to the 1st distribution line, choose the “Undeposited” option by using the drop-down menu from the “Account” column.
• In the “Debits” section, you can add the deposit amount.
• Now, you can switch to the second distribution line, choose the appropriate bank account by clicking on the “Account” section drop-down.
• Then, switch to the “Credits” column to add the deposit amount.
• Click the “Save and Close” button.

Group Your Journal Entry with Payments

• Click on the “+New” menu.
• Then, click on the “Bank Deposit” option.
• Here, you can choose the journal entry and payments you created.
• Once done, click the “Save and Close” button.

As you follow these steps, the payments will be grouped with the Journal Entry. Remember it will also remove it from the Undeposited Funds.

How to Record Cash Deposit in QuickBooks Desktop?

In QuickBooks Desktop, loans can be recorded in two different ways. For instance, you can record the cash loan or non-cash asset loans. If you are willing to record the cash deposit, learn with us how to record a loan deposit in QuickBooks:

• Navigate through the “Banking” menu.
• Then, click on the “Make Deposits” option.
• After this, choose the “Cancel” button if you see the “Payments to Deposit” window.
• Now, go to the “Make Deposit” screen, you can add the relevant details in the dedicated fields such as:
  • Deposit To: Choose the account to which you want to deposit your loan.
  • Date: Choose the date.
  • Account: Click on the liability account you created to track the loan payment.
  • Amount: Here, you can enter the loan amount.
• Press the “Save and Close” button.

This is how you can record the cash loan in QuickBooks Desktop. If required, you can record the non-cash asset loan as well.

How to Record a Returned Deposit in QuickBooks Online?

If your vendor returned the check due to insufficient funds then you can record it as well. To do so, you need to create the journal entry (How to Enter a Journal Entry in QuickBooks) along with the bill payment check. Here, we will show you the whole procedure of doing the same:

Step 1: Add the Reversing Journal Entry

• Click on the “Create (Plus)” icon.
• Then, select the “Journal Entry” option.
• Here, you will also have to make sure that the following details are correct:
  • Date
  • Entry No
  • Vendor Name
• Now, you can debit your checking account. This should be for the amount of your NSF check.
• Once done, you can credit your “A/P account”. This should be for the amount of your NSF check.
• Press the “Save and Close” button.

Step 2: Unlink Your Bill From Payment Check and Link the Bill to the Journal Entry

• Click on the “Expenses” menu.
• Then, select the “Vendors” option.
• Now, you can find the particular vendor and then open your original bill payment.
• Switch to the “Bill Payment” window then place the checkmark for the “Journal Entry” you have created earlier.
• Here, you can remove the checkmark for the “Bill” that is originally paid by your bill payment check.
• At this point, you can add a “Memo”. This will indicate that your check was returned for the NSF.
• Thereafter, you can click on the “Save and Close” button.

Step 3: Create the New Bill Payment Check to Add the New Payment Transaction

• Click the “Create(+)” icon.
• Then, choose the “Pay Bills” option.
• Here, you can select the bill that is originally paid by your NSF bill payment check.
• After this, you can fill out the required details.
• Press the “Save and Close” button.

By performing these steps, you can easily record returned payments whether it is from the vendor or for the customer.

How to Record Credit Card Deposits in QuickBooks?

QuickBooks users can record credit card payments in different ways to track expenses. This also helps to maintain the accuracy of financial reports. Let us show you the main way for recording the credit card payment or Receive Credit Card Payments in QuickBooks Online:

• Click on the “+New” menu.
• Then, select the “Pay down credit card” option.
• Here, you can choose the credit card to which you have made the payment.
• After this, you can add the following:
  • Payment Amount
  • Payment Date
• Thereafter, you can choose the bank account using which you paid the credit card.
• In case, you used a check to make payment then make sure you add the check number in the dedicated field. If it was paid electronically then you need to add the “EFT” number.
• Now, go to the “Memo and attachments” and add the file attachments or notes.
• Then, pursue the on-screen instructions.
• Click the “Save and Close” option.

This is how you can record the credit card deposits in QuickBooks Online. You can also make the payment after reconciling the credit card.

How to Record a Customer Deposit in QuickBooks?

If you receive a retainer or the upfront deposit from the customer, you should record it in your QuickBooks account. To do so, you can continue following these steps:

• Go to the “Customers” menu.
• Then, choose the “Enter Sales Receipts” option.
• After this, go to the “Customer:Job” drop-down list and choose the job or customer.
• Now, move to the “Deposit To” section and then choose the account to which you want to deposit the funds. In case you don’t find this field, the funds are recognized as “Undeposited Funds”. It can also be deposited later.
• Here, you can choose the “Payment Method”.
• Then, add the required details, for eg., “Date” and “Sale No.” in dedicated fields.
• Move to the “Detail” field, click on the “Upfront Deposit” item that you created using the “Item” drop-down option.
• Once done, click on the “Amount” section and then add the retainer or deposit amount.
• Click the “Save and Close” option.

This is how you can record the customer deposit in QuickBooks. Remember the retainer or deposit is recorded as the liability.

How to Record a Deposit in QuickBooks without an Invoice?

QuickBooks makes it possible for you to record deposits without using the invoice. For this, you can use two different ways such as Bank Deposit and Sales Receipt. Let us help you to guide on how to record deposits in QuickBooks 2015 without using invoice.

Record Deposits without Invoice via Bank Deposit

When your customers send payments, you can directly deposit to the bank account. Have a look at the following steps to record it in QuickBooks:

• Click on the “Plus (+)” icon.
• Then, click the “Bank Deposit” option.
• Select the bank account and currency.
• Then, scroll down to find the “Add funds to this deposit” option and enter the required details.
• Here, you also have to make sure to select the right income account.
• Press the “Save and Close” button.

Record Deposits without Invoice via Sales Receipt

Sales Receipts can also be used to record deposits without using the invoice. You can use this method when you receive a full payment during the sale time. Such transactions also include payments by check, credit card, or cash. Here are the instructions:

• Click on the “Plus (+)” icon.
• Then, click the “Sales Receipt” option.
• Select the customer name and add the sales details.
• Press the “Save and Send/Close” button.

By using the Sales Receipt and Bank Deposits feature, you can record deposits in QuickBooks. These methods do not require you to use an invoice.

How to Record a Returned Direct Deposit in QuickBooks?

If the contractor’s direct deposit has been failed, you can void it. This can be done from the Expenses tab. Have a look at the following steps:

• Click the “Expenses” tab.
• Then, click on the “Expenses” option.
• After that, you need to find the direct deposit transaction that you want to void.
• Once found, click on the “View/Edit” drop-down list from the “Action” column.
• Select the “Void” button.
• Hit the “Yes” button to confirm.

As you perform these steps, it will show the status as voided. Also, the amount will appear to be $0.00. This way you can record the failed direct deposit in QuickBooks.

How to Record ACH Deposits in QuickBooks?

By entering the ACH in a Check No. column, you can pay a bill in QuickBooks Desktop. To do so, the following steps can be performed:

• Click on the “Vendors” menu.
• Then, select the “Pay Bills” option.
• Choose the “Bills” that need to be paid.
• Go to the “Payment” section and add the date.
• Select the “Check” as your method.
• After this, you can enable the “Assign check number” option and choose the “Account” option.
• Click on the “Pay Selected Bills” option.
• When you are prompted how you want to assign the check numbers, you can mention “ACH” in a column of “Check No.”.
• Then, click the “OK” button.

This is how you can enter the ACH deposit in QuickBooks. All you have to do is make sure that you enter the right details. In case you encounter any errors, Verify Rebuild Data tool can help in this.

Endnote

Here, you have learned to record deposits in QuickBooks. The recorded deposit can also be removed if required in the future. Besides that, you have learned to record different types of deposits including owner deposit, negative deposit, cash deposit, returned deposit, credit card deposit, customer deposit, and more.

To learn more, check out this guide on how to record security deposit refund in QuickBooks.