QuickBooks | Default deposit to account
Software: QuickBooks accounting software
By default, QuickBooks has used the Undeposited Funds account as a default deposit to account. That is, when you received payment from customers, it will be deposited to the undeposited Funds account automatically. The double entry will be:
Debit Undeposited Funds account
Credit Accounts Receivable
Then, you need to use the “Make Deposit” to transfer the amount received into the respective Bank account. This is a good feature as you can less off the Bank Service Charges from the Make Deposit window before deposit the money into the Bank account.
However, for those who prefer to deposit directly into the Bank account instead of passing through the Undeposited Funds account can turn off this feature.
From the Preferences window, go to the Company Preferences tab of the Payments section, and uncheck the “Use Undeposited Funds as a default deposit to account” checkbox.
Once the default deposit to account is turned off, there will be an additional “Deposit To” field available in the Customer Payment transaction window with a drop down list of the bank accounts.
