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This chapter is from the book

Making Deposits

Chances are, you don't run to the bank to make a deposit every time a customer gives you money. Instead, you probably accumulate cash and check receipts and make deposits on a daily basis. Similarly, if your business accepts credit cards, funds from credit card transactions are likely to be deposited to your bank account every day or so.

As you accept payments, either through cash sales or the receipt of payments on customer accounts, you can use the Group with other undeposited funds radio button ( Figures 4 and 38 ) to group payments in a sort of "holding account" within QuickBooks. This account, which is called the Undeposited Funds account ( Figure 52 ), keeps track of money you receive until you actually deposit it.

03fig52.jpg

Figure 52 This example of the Chart of Accounts list window shows over $7,700 of Undeposited Funds.

When you take cash and checks to the bank, you can use the Make Deposits command to record them within QuickBooks as a deposit to your bank account. Likewise, when credit card receipts appear on your bank statement, you can record them within QuickBooks as deposits for the date they appear on the statement.

This part of the chapter explains how to use the Make Deposits command to record items in the Undeposited Funds account as deposits to a bank account.

To deposit checks & cash

  1. Gather together the cash and checks you want to deposit and prepare a deposit slip for your bank.
  2. In QuickBooks, choose Banking > Make Deposits ( Figure 53 ). The Payments to Deposit window appears. It lists all undeposited funds in order of payment method and date ( Figure 54 ).
    03fig53.jpg

    Figure 53 The Banking menu includes commands for banking activities.

    03fig54.jpg

    Figure 54 The Payments to Deposit window shows all undeposited funds.

  3. Click in the U2713.GIF column to toggle check marks beside each item included in the deposit. Figure 55 shows all items checked off except one.
    03fig55.jpg

    Figure 55 Check off the items you want to include in your deposit.

  4. Click OK. The Make Deposits window appears. It lists all of the items you checked in step 3 ( Figure 56 ).
    03fig56.jpg

    Figure 56 The items you checked appear in the Make Deposits window.

  5. Choose the bank account that the deposit will be made to from the Deposit To dropdown list.
  6. Enter the date of the deposit in the Date box.
  7. Click OK. QuickBooks creates an entry that transfers the amount of the deposit from the Undeposited Funds account to the bank account you chose. The items you selected do not appear in the Payments to Deposit window the next time it is displayed ( Figure 57 ).
    03fig57.jpg

    Figure 57 Here's the Payments to Deposit window from Figures 54 and 55 after making the deposit shown in Figure 56.

  8. Make the deposit at the bank.

To record credit card deposits

  1. Obtain the daily credit card statement or batch report listing all credit card deposits made for a specific date.
  2. In QuickBooks, choose Banking > Make Deposits ( Figure 52 ). The Payments to Deposit window appears. It lists all undeposited funds in order of payment method and date ( Figure 57 ).
  3. Click in the U2713.GIF column to toggle check marks beside each item included in the deposit. Figure 58 shows two credit card transactions checked off.
    03fig58.jpg

    Figure 58 In this example, two credit card payments are selected for deposit.

  4. Click OK. The Make Deposits window appears. It lists all of the items you checked in step 3 ( Figure 59 ).
    03fig59.jpg

    Figure 59 The payments appear in the Make Deposits window.

  5. Choose the bank account that the deposit was made to from the Deposit To drop-down list.
  6. Enter the date of the deposit in the Date box.
  7. Click OK. QuickBooks creates an entry that transfers the amount of the deposit from the Undeposited Funds account to the bank account you chose. The items you selected do not appear in the Payments to Deposit window the next time it is displayed.

To modify or delete a deposit

  1. Choose Banking > Make Deposits ( Figure 52 ).
  2. If the Payments to Deposit window appears, click Cancel. The Make Deposits window appears, but without any payments listed ( Figure 60 ).
    03fig60.jpg

    Figure 60 The Make Deposits window without any payments listed.

  3. Choose the account the deposit you want to modify or delete was made to from the Deposit To drop-down list.
  4. Click the Previous button to scroll through existing deposits until you see the one you want to modify or delete.
  5. To modify the deposit, make changes as desired and click OK. If a dialog like the one in Figure 61 appears, click Yes. The changes are saved.
    03fig61.jpg

    Figure 61 This dialog may appear if you modify a deposit and save your changes.

    Or To delete the deposit, choose Edit > Delete Deposit ( Figure 62 ), or press command+d.gif . If a dialog like the one in Figure 63 appears, click OK. The deposit is deleted.
    03fig62.jpg

    Figure 62 The Edit menu when a Deposit is selected.

    03fig63.jpg

    Figure 63 This dialog appears when you delete a deposit.

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