Recording of credit card transactions with undeposited funds

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Recording of Credit Card Transactions with Undeposited funds

It is always challenging to manage Recording of credit card transactions with undeposited funds however with Meru Accounting everything seems easy. to know how read this blog post

  1. Undeposited Funds feature in QuickBooks
    • On receiving payment, QuickBooks gets intimated once you record each payment and make a choice depending on how you want QuickBooks to deal with the deposit.
    • A payment item can be used on an invoice or as an entry of a sales receipt.
    • Set the undeposited funds account by default for automated transfer of payments made by customers that are received at your end. This account acts as a buffer to hold the amount until the amount is deposited in the bank account and the QB register tallies its figure with that on the bank statement.
    • Provides option to deposit directly to your bank account with the option “Deposit to”. Instead of gathering funds and then depositing them with the Make Deposits window, it transfers the funds to the respective bank account.
  2. Ease of recording transactions using undeposited funds
    • Payments can either be ‘automatically’ or ‘manually’ deposited depending upon your option preference between “Bank Register Window” and “Group with Undeposited Funds” option.
    • Recording the transactions or payments in the Undeposited Funds account, makes reconciliation of bank statement with AccountEdge records easy.
    • User-friendly steps to enter funds within undeposited account:
      • Launch accounting software
      • Click on the list from the navigation menu
      • Select items tab from the drop down menu
      • Choose the required payment type
      • Fill in necessary details and information on the funds to be added
      • Click on the Accounts option and choose the desired account for undeposited fund
      • A final click on the Ok option to create the undeposited account
  3. Working on uncleared transactions in undeposited funds
    • Uncleared transactions need to be looked upon and cleared in order to avoid any trouble during period closure or report filing.
    • Regular and frequent action should be taken to keep the holding account clear and display a zero balance on an approach of the closing of the accounting period.
    • Steps to work on uncleared transactions in your undeposited funds involve:
      • Select Banking-> Make Deposits
      • Make a list of items to be cleared
      • Move to the next line of the deposit enter the account where the original transactions where posted
      • Note in the Memo field to indicate an entry for clearing an old transaction
      • In the amount column, enter a negative figure meant to offset the original
      • incorrect transaction.
  4. Journal entries for undeposited funds
    • Record needs to be maintained for transactions that are maintained in your undeposited funds account. Writing the journal entry involves 5 basic steps:
      • Date of the transaction
      • The debit and credit account details, from undeposited fund account to your bank account
      • A match between the figures involved in the debit and credit
      • An explanation on why the transaction has taken place

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