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Is Your QuickBooks Payment Not Deposited? Here’s the Solution

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Are there some transactions that show as paid but are not deposited? You might have sent out invoices that were paid. However, you might find a QuickBooks payment not deposited. If this happens, you will not receive the payments in the bank. Sometimes, even after the money is received in the bank account, it shows that the invoice was paid but not deposited.

Let us see why these QuickBooks payments are not deposited or not reflected in your bank. Moreover, we will guide you on how to correct this. We will also see how to fix QuickBooks “Paid (Not deposited) status.

All right then, let’s get started without further ado.

A QB ProAdvisor can help you address the issue you are facing right away. Dial 800-580-5375 and speak to a QB ProAdvisor to resume your work without further delay.

Why is Your QuickBooks Payment Not Deposited?

Let us see some possible reasons why the QuickBooks payments show paid but are not deposited.

1.     It takes a few days

After a transaction, money usually reaches your deposit bank account in two to three business days. The time of day you submit transactions, the financial institution you select for transactions to be placed in, and the length of time it takes your bank to validate and process electronic deposits all affect this, too.

While ACH deposits could take seven to ten business days, credit card payments typically take five to seven banking days to reach your bank.

2.     Paid, Not Deposited

It might go to the Undeposited Funds account.

QuickBooks payments are, by default, sent to the Undeposited Funds account. The Undeposited Funds account is a temporary account that holds the QuickBooks payments before they are manually transferred to the real-life bank account.

Therefore, it is possible that when a customer made a payment for an invoice, it went straight to the Undeposited Funds account.

How to Address the QuickBooks Payments that Aren’t Deposited

Now we know the probable reasons for a QuickBooks payment not deposited, let us go about fixing it. Follow the steps listed below to make sure the payments are deposited.

1.     Check the Status of Processed Payments

The payments usually take a while to be deposited and reflected in your bank accounts. You can check the status of the processed payments in QuickBooks.

a.      QuickBooks Desktop

Here is how you can check the status of the processed payments in QuickBooks Desktop

  • Log in to the Merchant Service Center.
  • Go to the homepage and choose Activities & Reports.
  • Now tap on Deposits.
  • Choose the date range in the Dates field.
  • Tap on Search.

You will see different payments in the report. Click on a specific payment to learn more about it.

b.      QuickBooks Online

Here is how you to check the status of processed payments in QuickBooks Online (QBO)

  • Log in to QuickBooks Online.
  • Tap on the Sales menu.
  • Now, click on the Deposits tab.
  • Tap on the bank deposit you wish to review.

This will help you check if the payments are on their way, and figure out if you should wait a while for them.

Now, let us check and see if the payments are in the Undeposited Funds account.

2.     Check the Undeposited Funds Account

QuickBooks payments by default go to the Undeposited Funds account. Therefore, if you can’t see the payments as deposited, we need to check the Undeposited Funds account.

a.      For QuickBooks Desktop

  • Open QuickBooks Desktop and sign into your company file.
  • Tap on the Lists menu.
  • Choose Chart of Accounts.
  • Double-click Undeposited Funds.

Check if the payments you are searching for are there.

b.      For QuickBooks Online

  • Sign into your QuickBooks Online company.
  • Go to the left pane and tap on Accounting tab.
  • Choose the Chart of accounts.
  • Find the Undeposited Funds account.
  • Tap on the View register option below the Action column.

Now, check if the payments that have not been deposited are there. If you find the payments in the Undeposited Funds account, the next step is transferring them to your real life bank account.

3.     Deposit the Undeposited Payments

QuickBooks payments that go to the Undeposited Funds account won’t reflect in your bank account until you transfer them.

Sometimes, you might receive the money in your bank account, but the invoice might show “Paid (Not Deposited).”

You will need to make a deposit to transfer it from the Undeposited Funds account to get the Deposited designation before it. You can deposit multiple payments in a single deposit to your bank or can deposit each payment separately. If you deposit each payment separately, they will appear exactly in your bank account as they appear in QuickBooks.

Let us see how you can transfer the undeposited funds to your bank account.

a.      For QuickBooks Desktop

Here is how you can deposit payments into the bank account.

  • On the Homepage, choose Record Deposits / Make Deposits.
  • You will see the Payments to Deposit window. You can choose the payments you want to combine and deposit together. Choose only one payment if you want to deposit each payment separately.
  • Tap on OK.
  • Now, choose the account where you want to put the money in the Make Deposits window.
  • Verify the deposit total.
  • Check and ensure the account and selected payments match the information in the deposit slip from your bank. (You can use your deposit slip as a reference.)
  • Fill in the date you made the deposit at your bank.
  • You might type in a memo if needed.
  • Finally, tap on Save & Close.

b.      For QuickBooks Online

Here is how you can deposit the amounts to your bank account in QuickBooks Online.

  • Tap on the +New icon. Now, choose Bank deposit.
Bank Deposit for QuickBooks Online
  • Now, select the bank account where you want to deposit the payment.
Undeposited Invoice in QB Online
  • Now, mark the checkbox for the invoices that are undeposited.
  • Finally, tap on Save and new.

The QuickBooks payment will now be deposited into your bank account.

However, if you still find the QuickBooks payment not deposited because you weren’t able to find it in the Undeposited Funds account, proceed to the next step.

1.     Look for Payment Issues

We want to see if the payment was successfully funded or, due to an issue, was withheld or returned.

For this, run a monthly statement:

  • Log in to the Merchant Service Center and navigate to the homepage.
  • Tap on the Activity & Reports tab. Click on All Statements.
  • Select the month you want to check and tap on View. Alternatively, tap on Download to download a PDF for your records.

Now, look in the Status column.

  • Successful deposits will show as Funded in the Status column.
  • If you see Withheld or Batch Deposit Returned in the Status column, there might be an issue with the payment. In this case, tap on the arrow dropdown in the Fee column to review details. QuickBooks will send you an email and instruct you on how you can fix the issue.

This was how you can find the QuickBooks payment that are not deposited and deposit them. Now, let us see how you can prevent this from happening in the first place.

Ensuring Payments are Directly Deposited in the Future

Are the payments you receive via credit card or other methods not automatically being cleared?

Here is how you can set the right configuration in the Accounts and Settings section so that the payments are deposited automatically in the future:

  • Go to Settings at the top.
  • Tap on Account and Settings.
  • Tap on Payments among the options in the menu.
  • Navigate to the Chart of Accounts field.
  • Tap on the pencil (edit) icon.
  • In the field Where do you want to record payments? select the right bank account.
  • In the field Where do you want to record processing fees? select the right expense account for tracking processing fees.
  • Tap on Save.

Customer Payments Not Showing Up

Are your customer payments not showing up in the Profit and Loss reports? However, you can see the customers’ payments. For some reason, you won’t be able to find the customer payments in the P&L report, deposit, or reconciliation window. Learn why are your customer payments not showing up and how to correct this

Wrapping It Up

So, this was all about why is a QuickBooks payment not deposited. We explored different reasons why QuickBooks payments are not deposited and how to correct this. However, if you face an issue or have a query, reach out to QB ProAdvisor.

The QB ProAdvisor will address the issue and help you resolve it right away. Dial 800 580-5375!

Top Queries

How long does it take for a QuickBooks payment to deposit?

Payments for QuickBooks Online, QuickBooks Desktop, and GoPayments usually take around 2 business days to be transferred. However, if you process payments after 3 pm Pacific Time (PT), QuickBooks starts the deposit the next day, meaning it will take another day to deposit.

What does ‘Paid, Not Deposited’ mean in QuickBooks?

If your invoices or payments show ‘Paid, Not Deposited’ status, it is because the payments were received in the Undeposited Funds account. You will need to transfer the payment if you have received the QuickBooks payment but not deposited.

Why is QuickBooks payment delayed?

When you first set up a QuickBooks merchant account, the first few payments take longer to process. However, things should pick up the pace after that.

What should I do about the QuickBooks payment that does not match deposit?

If QuickBooks doesn’t automatically match, you can do it manually. For that, use the Find match feature and categorize them from the bank feeds.
● Go to the left navigation panel and tap on the Bank Transactions menu.
● Select Bank transactions.
● Now, choose the account you want to review.
● Go to the For Review tab and find the downloaded transaction.
● Click on the downloaded transaction.
● Tap on Find match.
● Now, click on Save.

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