This article addresses how to resolve Uncategorized Deposits in QuickBooks Online.

Sometimes, for various reasons, you receive a payment from a customer and this payment is deposited into your bank account WITHOUT having first been applied to any open invoice in your bookkeeping.

This deposit will most likely, for now, be posted into some sort of Uncategorized income account in your bookkeeping. Of course, ultimately, you don’t want to keep this deposit posted this way as there has to be a legitimate reason why you received these moneys and deposited them.

So, in our scenario, let’s say this Uncategorized deposit should indeed be applied to an open customer invoice. Since you already posted this deposit as Uncategorized, we will deal with resolving this scenario after-the-fact, in your QuickBooks Online company file.

First, to receive a typical customer payment, just:

1. Go to your customer list and click on “Receive Payment” on the far-right side of the customer line you wish to post this payment to.
2. When the “Receive Payment” screen opens up, fill in all the appropriate fields. Be sure the payment date matches the date of the bank deposit. Also, VERY IMPORTANT, be sure the “Deposit to” account has “Undeposited Funds” selected.
3. Select the Invoices you want to apply this payment to and Save & Close.

Now, the next step is simply to swap out the Uncategorized deposit for the customer payment noted above. To do this:

1. Find the previous Uncategorized deposit and open this up.
2. When the “Bank Deposit” screen opens up, you will see two entries here: one entry is going to be that Undeposited Payment you recorded above. The 2^nd entry (when you scroll down) is going to be our previous Uncategorized deposit. Note: Both amounts should be the exact same.
3. Simply select your Undeposited customer payment (above) and delete the Uncategorized deposit.
4. Save and Close.

Note: AccuraBooks is a bookkeeping firm only, so please consult with your C.P.A. for verification and clarification about the contents of this article.