This article addresses how to resolve Uncategorized Deposits in the Desktop version of QuickBooks (not the Online version).

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 (in QuickBooks Desktop), just:

1. From the drop-down menu, click on “Receive Payments” underneath the Customers tab.
2. Type in the customer’s name in the “Received From” field.
3. Then, fill in the payment amount and date the payment was received.
4. Now select the open invoice to apply the payment to.
5. Before you exit, be sure to choose “Undeposited Funds” in the “Deposit to” field.
6. 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, then also click on “Payments” in the menu bar towards the top.
3. When the “Payments to Deposit” pop-up window opens up, select that customer payment we processed earlier and then “OK”.
4. Now simply select and delete the Uncategorized deposit line item (Edit>Delete Line).
5. 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.