How to Create Deposits in QuickBooks 2019
Watch QuickBooks 2019 video tutorial. We will demonstrate how to create deposits and make sure that money goes into the bank.
Once you’ve actually gone through and received your payments, you’ll at some point want to take those payments. And pull them into a deposit and that’s what I want to show you how to do now in QuickBooks.
If you remember, the last thing we did was receive payments. We did not make a deposit yet. So this money is actually sitting in that account called Undeposited Funds. Let’s go back and look at that for a second.
I’m going to the Chart of Accounts. I’m going to choose Undeposited Funds and you can see there’s $6,539.75 sitting in that account.
Now, what we want to do is take the money out of that account and put it in our checkbook. And the way we’re going to do that, we’re going to follow the flowchart all the way to the end to the Record Deposits.
Now, before I click on that I want to mention something that I see very often and that is people will get to this point where they’ve received the payment. So in QuickBooks, the invoices show as paid.
But, remember that money sitting in undeposited funds. The tendency is to go over here to your checkbook register. Then, I’m going to open real quick. I’m going to choose my checking account.
And what happens is people want to type that deposit in on the next available line here at the bottom. Let me tell you why that’s wrong on so many levels.
Number one, yes, I could put that deposit here and the balance would be correct but I did not move the money out of undeposited funds. That way, as I keep receiving payments then the money is going to grow and grow and grow. So that’s the first problem.
The second problem is, would you know which account in your Chart of Accounts to put this to? The tendency is for people to pick an income account. That’s going to be wrong because you will be doubling your income.
QuickBooks actually decided at the moment you made the invoice that it was income. The other thing is sometimes people want to put this to Accounts Receivable.
You’ve already been there and done that as well. So neither answer is correct. It will never be correct if you type it in here. You want to let things dump into the register often and this is a prime example.
I’m going back to the Home screen and let’s go ahead and record deposits. And also that number three that you see, indicates that there are three payments sitting in Undeposited Funds waiting to be pulled over.
This is the money sitting in Undeposited Funds. You can see there’s a couple that was here already. And then, you can see the one we did for Tom Allen. All you’re going to do is check off the ones you’re going to put in this deposit.
Now, remember you want the deposits in QuickBooks to match deposits that actually happened at the bank. So, if the first one was on deposit by itself, you do that one individually. And then, you come back and do the other two. I’ll go ahead and check them all and click OK. So now, you can see it’s pulled in all three of those payments.
What you don’t want to do is change this account. This is where the money actually is coming from. It’s coming from Undeposited Funds. Do not try to change that!
You do want to make sure you’re depositing this to the correct bank account. You’ve got the correct date of your deposit. And if you needed to add something to this you could. Let’s say, you wanted to add a rebate check you received from Staples.
You would add that and choose the account, Office Supplies. Maybe it is the fact that you as a small business owner want to contribute some money to the business.
The account, in that case, would be Owner Contribution or Shareholder Contribution (whatever you call that account). Make sure that it’s not always income. Just depends on what it is you’re depositing.
You’ll notice at the bottom that if you are sole proprietor you might want to keep $20. That would be cash back goes to and you could pick the account that you want that to go to. There’s a memo line and also the $20 would go right there and then it would subtract it from this amount right here.
If you notice you can also come up here and search through your deposits. You could save the deposit. You could print this. And I want to show you the two options you have for printing. You could print a deposit slip or what they call a deposit summary.
You could also go back and see the payments. This is where we checked off those three payments. Also, if you wanted to attach something to it. If you wanted to attach a file you could, or go back and look at the history of this particular deposit.
I’m going to make note of the total amount of the deposit. It says $6,539.75. I’m going to Save & Close and two things have now happened.
Number one, if we go back and look at the Chart of Accounts, notice, Undeposited Funds is now zero. And that is the proper way to handle that whole line right there!
The other thing I wanted to show you is that, if I go look in the checkbook register again, I now have a deposit down here for $6,539.75.
The reason it says, Split! Because there is more than one transaction on that particular deposit. The blue line also means it’s just postdated. That’s all that means.
And that’s really all you have to do to actually make your deposits.
Well, that’s going to wrap up this particular video. There’s a couple of other things I want to talk to you about in this module. The next one being, I want to show you how to create credit memos and we’ll get rid of that $0.04 that was our underpayment.
Cindy McGuckin
Cindy McGuckin is an IT trainer with over 20 years of experience. Cindy currently manages the IT Training Department at Trident Technical College, she's a Member of the Association of IT Professionals, Charleston, SC chapter and the Treasurer of the South Carolina Association of Continuing Higher Education. Cindy is a Microsoft Office and QuickBooks expert and her online courses have received hundreds of 5-star reviews. Her no-nonsense approach to teaching complicated topics makes her classes engaging and interesting.