Learn how to deal with batch deposits by using an undeposited funds account.
What is a Batch Deposit?
A batch deposit occurs when you put together payments from multiple customers in a single deposit. This can happen when you deposit checks from different customers at the same time into your bank account, or have multiple credit or debit card payments from a merchant account transferred as a single deposit into your bank account. Using an Undeposited Funds account ensures that your deposit amounts in the Banking page match those shown on your bank statement.
Don't have an Undeposited Funds Account?
The Undeposited Funds account is included in your chart of accounts by default. If you removed it, please add it back by going to the
Then creating a new account with the
Name of Undeposited Funds, and a
Type of Cash (you can add a Description if you like, but it's not necessary).
Using the Undeposited Funds Account
Use Undeposited Funds as the Payment Account
Go to the
Enter Payment tab found in the
When you receive the payment from your customer, enter it like any other payment, but use the Undeposited Funds account for the
Every time you receive a payment that you will deposit into your bank along with other payments, record the payment to the undeposited accounts.
Make a Transfer from Undeposited Funds to the Bank Account
Let's say that you went to the bank and deposited three checks totalling $4,000 into your bank account.
- Check #234 - $500
- Check #8837 - $1,000
- Check #2032 - $2,500
To record this, go to the
Then make a $4,000 transfer where the
Withdraw From account is Undeposited Funds and the
Deposit Into account is your Bank Account. If you like, you can add a
Memo referencing the checks deposited, which makes it easier to track payments and deposits.
Now when you go to the
Banking page and reconcile your bank account, instead of having three checks show up as separate line items, it'll show up as a single deposit of $4,000, making it easy to reconcile.