Posting two or more merchant settlement or customer check payments in a single batch deposit in QuickBooks requires the usage of the special Undeposited Funds current asset account/function in QuickBooks.

To Begin:

1. Apply any and all full gross receipts/payments to open customer invoices like you normally would:

a. However, here you are going to choose the “Undeposited Funds” account as the bank account to deposit the customer payments to.

i. This will create a balance in the Undeposited Funds current asset account.

2. After you have actually made the batch deposit into your bank account, whether it be from an automated merchant settlement or a manual batch check payment deposit:

a. Go to the Bank Deposit function within QuickBooks:

i. Note: You may also need to click on “Payments” within the QuickBooks Desktop version to see all of the actual undeposited customer payments to choose from (if this window does not automatically pop up first).

ii. Note: The list of actual undeposited customer payments to choose from is a separate pop-up window within the QuickBooks desktop version. There is no separate pop-up window within the QuickBooks online version, thus do not get confused here.

b. Once you have chosen the actual customer payments that comprised the entire single batch deposit into the bank account, verify the total to be deposited in QuickBooks equals the total batch deposit that actually cleared the bank account, then click “Save & Close”.

i. Note: For credit card merchant settlement customer payments, be sure to manually add an additional line item (at the bottom) within the To Be Deposited screen in QuickBooks (before clicking Save & Close).

1. This extra line item will be for a negative amount that is equal to the merchant fees (if any) that were automatically deducted from your customer payment batch by the credit card company, prior to depositing into your bank account.