callnow

Live Support

+1-802-778-9005

A certificate of Deposit is when a small business deposits an amount of money to a bank. The bank will provide a higher interest rate than a normal savings account in exchange for the small business promising to keep the funds in the bank account for a set amount of time. In accounting, a certificate of Deposit is referred to as an asset, more or less equivalent to cash, so often companies will lump certificates of deposits into cash. 

In QuickBooks, recording the Certificate of Deposit is important for maintaining accuracy and efficiency with your bank or credit card transactions. Businesses need to organize their financial records for better decision-making and cash-flow management. This involves a lot of banking transactions, such as deposit slips, which need to be managed carefully to make sure that every Transaction is recorded and matched with the bank statement. 

Record and Make Bank Deposits in QuickBooks Desktop

You often deposit multiple payments from different sources at once when you deposit money at the bank. The bank usually records everything as a single record with one total. If you enter the same payments as separate records in QuickBooks desktop, you won’t be able to match how your bank records the Deposit.

In such cases, QuickBooks has a different way for you to combine everything so your records match your real-life bank deposits. Put transactions you want to combine into your Undeposited Funds account and then record a bank deposit to combine them. Here’s how to record and make bank deposits in QuickBooks Desktop.

Part 1: Put Payments into the Undeposited Funds Account

If you haven’t already, put the transactions you want to combine into the Undeposited Funds account.

Here’s how:

Step 1: Go for Preferences  

Head to the Edit menu and then choose Preferences.

Step 2: Select Payments and Company Preferences 

Select the Payments from the list. Then, hit the Company Preferences tab.

Step 3: Unmark Use Undeposited Funds as a default deposit to the account

Click and uncheck the Use Undeposited Funds as a default deposit to account checkbox.

Step 4: Finishing up

Press the OK button.

Now, you can select Undeposited Funds or another account each time you create a sales receipt. Below are the steps to do so: 

Step 1: Create Sales Receipt 

Choose the Create Sales Receipt option on the Homepage.

Step 2: Add the Customer

Select the customer from the Customer dropdown menu.

Step 3: Select Undeposited Funds

Click on Undeposited Funds from the Deposit to dropdown menu.

 Step 4: Enter all the necessary details 

Fill out the rest of the form.

Step 5: Finishing up 

Press the Save & Close or Save & New tabs.

Tip: Always review the “Deposit to” field so you know where your payments are going.

If your bank records a single payment as its own Deposit, you don’t need to combine it with others on QuickBooks desktop. You can put the payment directly into an account instead and skip Undeposited Funds.

Part 2: Record a Bank Deposit in QuickBooks to Combine Payments

If you have your deposit slip from your bank, you’re ready to record the Deposit in QuickBooks desktop.

Step 1: Go for Record Deposits / Make Deposits

Choose Record Deposits/ Make Deposits from the Homepage. 

Step 2: Select the Payments 

Under the Payments to Deposit window, select the payments you want to combine. Then hit OK.

Step 3: Add an Account 

On the Make Deposits window, click the account you want to put the Deposit into from the Deposit to dropdown.

Step 4: Match the Deposit slip 

Check the total Deposit. Make sure the account and selected payments match the deposit slip from your bank. You can use your deposit slip as a reference.

Step 5: Type the Correct Date

Enter the date you made the Deposit at your bank.

Step 6: Finishing up

Add a memo as required. Then, press Save & Close once you’re done.

Each bank deposit is a separate record, so make deposits one at a time for each of your deposit slips.

Deposit Payments into two Separate Bank Accounts

If you want to put your Deposit into multiple bank accounts, adhere to the steps below:

Step 1: Select Record Deposits / Make Deposits

Choose Record Deposits / Make Deposits on the Homepage.

Step 2: Decide the Payment 

Select the payments you want to combine under the Payments to Deposit window. Then, press OK.

Step 3: Pick an account 

On the Make Deposits window, click the account you want to put the Deposit into from the Deposit to dropdown.

Step 4: Add a new line 

Add a new line in the payment you want to put into a second account.

Step 5: Opt for the Second Account

Choose the second account under the From account dropdown on the second line. Then, type the amount you want to put into the second account as a negative value. You can enter the entire amount or part of it. 

In this instance, we received three payments from the same customer. We’re moving the third one to a savings account and the other two to checking.

Step 6: Finishing up 

Hit the Save & Close icons once you’re ready.

Part 3: Manage your Bank Deposits

Review Past Bank Deposits

To see past deposits and the transactions you combined, follow these steps: 

Step 1: Go for the Reports Center 

Navigate to the Reports menu and then click on the Report Center.

Step 2: Select Banking 

Choose the Banking section.

Step 3: Locate the Deposit Detail report 

Find the Deposit Detail report and then hit the Run icon.

The Report lists all of your recorded bank deposits. You can select individual deposits to get more details.

Delete a Bank Deposit

If ever you need to start over, you can delete a bank deposit. Here are the steps to be followed:

Step 1: Go to Report Center 

Hover over the Reports menu. Then, click on the Report Center.

Step 2: Select Banking 

Choose the Banking section.

Step 3: Locate the Deposit Detail report

Find the Deposit Detail report and then hit the Run icon.

Step 4: Delete the Deposit 

Search and open the Deposit you want to delete.

Step 5: Review the payments added to the Deposit 

You’ll see all the payments included on the Deposit under the Make Deposits window Review them and make sure you need to start over.

Step 6: Finishing up 

Hit right-click in the window and click Delete deposit. Then, Press OK to confirm.

All payments on the Deposit go back to your Undeposited Funds account. You can start over and then make a new deposit.

Record Recurring Deposits

You can make an existing deposit a recurring transaction if you regularly record the same deposits:

Step 1: Use Register 

Go to the Banking menu and then select Use Register.

Step 2: Look for an exciting deposit 

Search for and then open an existing deposit.

Step 3: Select Memorize Deposit 

Hit right-click on the Deposit and then choose Memorize Deposit.

Step 4: Mark Automate Transaction Entry

Click Automate Transaction Entry if you want QuickBooks to record the Deposit automatically. Otherwise, press Add to my Reminders List to get a notification to create the Deposit.

Step 5: Add the frequency 

Under the How Often dropdown menu, select the frequency (monthly, weekly, daily, etc).

Step 6: Set the Start Date

Set the start date for the recurring deposits in the Next Date field. The first recurring Deposit will start on the first day.

Step 7: Enter how many deposits you want 

Type how many deposits you want QuickBooks to create in the Number Remaining field. 

Step 8: Decide how many days in advance the Deposit will be recorded 

You can set how many days in advance QuickBooks will record the Deposit under the Days In Advance To Enter field. Type 0 if you want to record the Deposit on the day you choose.

Step 9: Finishing up

Hit the OK tab when you’re done.

QuickBooks will automatically record the Deposit on the date and frequency you’ve selected.

Categorize the New Certificate of Deposit in QuickBooks Online

The recorded amount on your checking account is a transfer transaction. While the recorded amount on your credit card is a payment transaction. Let’s see how to categorize the transactions accurately. 

For Checking Account

Step 1: Go for Bank Transactions 

Choose Bank Transactions on the Transactions tab.

Step 2: Select Checking Account 

Click on your Checking account.

Step 3: Categorize your Transactions 

Under the For Review tab, select the Transaction that needs to be categorized.

Step 4: Record as Transfer 

Tickmark the 〇 Record as transfer, and then opt for the account you want the amount to be transferred to in the Transferred to.

Step 5: Finishing up

Press Confirm to end the transfer categorization process. 

For Credit Card Account

Step 1: Go for Bank Transactions

On the Transactions tab, select Bank Transactions. 

Step 2: Select Credit Card Account 

Choose your Credit card account. 

Step 3:  Categorize your Transactions 

Click the amount that needs to be categorized under the For Review tab.

Step 4: Record as Credit Card Payment

Tick the 〇 Record as Credit card payment, and then choose the accurate credit card account on the Select credit card menu.

Step 5: Finishing up

Press Confirm at the end.

Undo the Bank or Credit Card Transactions in QuickBooks Online

When you download transactions from your bank, you are required to categorize them so you can go into the right accounts. However, if transactions are syncing without the need for categorization, you’ve likely set up bank rules. These rules automatically categorize transactions for you. Here’s how to undo the transactions.

Step 1:  Select the Bank or Credit Card Account 

Navigate to the Banking page and then choose the tile for the bank or credit card account you downloaded the Transaction from.

Step 2: Find the Unmatch Transaction 

Locate the Transaction you want to unmatch from the Categorized tab.

Step 3: Finishing up 

Click Undo in the Action column.

How to Record Certificate of Deposit in QuickBooks

Record the Transactions as transfers from the checking account

Step 1: Go for Bank Transactions 

On the Transactions tab, select Bank Transactions.

Step 2: Select the Bank Account 

Select the bank account from which the funds are coming.

Step 3: Find the Transaction 

Find and select the Transaction to open it.

Step 4: Mark the Record as Transfer

Select Record as a transfer. Then, from the Transferred dropdown, select the account where you transferred the funds.

How to Record Certificate of Deposit in QuickBooks

Step 5: Finishing up 

Click Add.

Match the Transaction from the other account

Step 1: Select the Bank Account 

Choose the bank account where the funds are going. 

Step 2: Review & Find the Transaction

Hit the For Review tab and locate the Transaction. 

Step 3: Finishing up

Select Match from the Action column so the Transaction matches both accounts.

How to Record Certificate of Deposit in QuickBooks

Create a Check or Expense transaction in QuickBooks Online

You are recommended to create a check or expense transaction to record the certificate of Deposit you’ve purchased. Here’s how: 

Step 1: Go for Check or Expense 

Click the + New button under the left menu. Then, select Check or Expense.

Step 2: Select the Vendor

From the Payee dropdown, choose the vendor you got the certificate of Deposit from.

Step 3: Add the Account 

Hit the account used to purchase the certificate in the Bank account  (check) or Payment account (expense) dropdown menu. 

Step 4: Mark Category 

Select the Category dropdown to pick the certificate of Deposit account for this vendor under the Category details section. 

If you don’t have an account for the vendor yet, add an account to your Chart of accounts in QuickBooks Online. For this, do the following: 

Add a New Account to your Chart of Accounts

  1. Navigate to Settings and then choose a Chart of accounts.
  2. Click New and then enter an Account name.
  3. Now, select an Account type, and then hit the Detail type from the dropdowns.
  4. If this account is a sub account, mark Make this a sub account, then choose the Parent account it should be under.
  5. However, if you choose a Bank, Asset, Credit card, Liabilities, or Equity account, enter Opening Balance and fill out the starting date in the As of field.
  6. Add a Description to add extra information about this account (Optional). 
  7. Press the Save button.

Step 5: Type the Amount 

Enter the amount of the certificate.

Step 6: Finishing up 

Press the Save and Close tabs.

Enter a New Certificate of Deposit in QuickBooks Online

Open the Chart of accounts, press NEW, and then choose an asset account, name it on the upper right side, and save. Use this account to create a Certificate of Deposit in QuickBooks. Here’s how:

Step 1: Go for the Chart of Accounts 

Hover over Settings and then choose a Chart of Accounts.

Step 2: Select New 

Click New. You’ll either see a panel labeled New account or New category depending on your account view. 

Record and Make Bank Deposits in QuickBooks Online

When you deposit money at the bank, you often deposit multiple payments from different sources at once. The financial institution usually records everything as a single record with one total. If you enter the same payments as separate records in QuickBooks, they may not match how your bank records the Deposit.

In such cases, QuickBooks has a special way for you to combine transactions so your records match your real-life bank deposit. Let’s discuss how to record bank deposits in QuickBooks Online.

  1. Select transactions you need to combine into your Undeposited Funds account.
  2. Use the bank deposit feature to combine them.

Part 1: Put Payments into the Undeposited Funds account

If you haven’t already, put invoice payments and sales receipts you want to combine into the Undeposited Funds account. This account holds everything before you record a deposit. 

You only have one Undeposited Funds account. Use it to hold all payments you need to combine and group together. You can choose the account in QuickBooks to put the Deposit into when you combine.

Important: QuickBooks Payments automatically processes and moves transactions into your accounts. You can also combine outside payments with these steps.

Transactions you download from your Banks and Credit Cards

QuickBooks automatically downloads all your transactions if you connect your bank or credit card accounts. You don’t need to combine downloaded transactions or use Undeposited Funds since QuickBooks already has the info from your bank. All you need to do is to categorize your downloaded transactions. 

Step 1: Select Receive Payment

Click + New and then choose Receive Payment.

Step 2: Add the Customer

Select the Customer from the Customer dropdown menu. Then, tickmark the checkbox for the invoice you’re receiving payments for. 

Step 3: Mark Undeposited Funds 

Choose Undeposited Funds from the Deposit to dropdown menu.

Step 4: Enter the Required Details 

Fill out the rest of the form.

Step 5: Finishing up 

Press Save and send, Save and new, or Save and close.

Sales Receipts for payments made outside of QuickBooks

Step 1: Select Sales Receipt 

Click + New and then choose Sales Receipt. 

Step 2: Add the Customer

From the Customer dropdown menu, select the customer. 

Step 3: Mark Undeposited Funds 

Click on Undeposited Funds under the Deposit To dropdown. 

Step 4: Enter all the required Details 

Fill out the rest of the sales receipt. 

Step 5: Finishing up 

Press Save and send, Save and new, or Save and close.

Part 2: Combine Transactions in QuickBooks with a Bank Deposit

Each bank deposit creates a separate record in QuickBooks. You are recommended to make deposits one at a time for each of your deposit slips.

Step 1: Go for Bank Deposit 

Click + New and then select Bank Deposit. 

Step 2: Select the Account 

Choose the account you want to put the money into under the Account dropdown menu. 

Step 3: Pick the Checkbox

Tick mark the checkbox for each Transaction you want to combine. 

Step 4: Match your Transactions Properly 

Make sure the total of the selected transactions matches your deposit slip. You can use your deposit slip as a reference.  

Step 5: Finishing up 

Press the Save and New or Save and Close tabs.

Add Bank or Processing Fees

Some banks add service charges and processing fees. Don’t edit the original transactions in QuickBooks add the fee instead while you’re on the Bank Deposit window:

Step 1: Add Funds

Navigate to the Add funds to this deposit section.

Step 2: Write down the Fee

Type the fee as a line item.

Step 3: Decide who the fee was from

Select who the fee was from (like the bank charging you).

Step 4: Select Bank Charges

Choose Bank charges from the Account dropdown.

Step 5: Enter the Amount fee

Input the amount fee as a negative number. For example, if the fee was S $ 50, enter –50.

Step 6: Review the Deposit 

Review the deposit total with the bank fee.

Step 7: Finishing up 

Press the Save and New or Save and close tabs.

Note: If you don’t have a bank charge account, here’s how to create one:

Step 1: Go for the Chart of Accounts

Go to Transactions and select Chart of Accounts.

Step 2: Select New & Expenses 

Select New. In the Account pop-up, select Expenses from the Account Type dropdown menu.

Step 3: Add Bank Charges

Select Bank charges from the Detail Type dropdown menu.

Step 4: Type the Name as Bank fees

Enter Name as Bank fees.

Step 5: Finishing up

Select Save and Close.

Part 3: Manage Bank Deposits

Review Past Bank Deposit

Step 1: Go for Reports

Move to Reports. 

Step 2: Select the Deposit Detail Report

Under the Sales and Customers section, choose the Deposit Detail report. 

Step 3: Finishing up 

The Report lists all your completed bank deposits. You can select individual deposits to get more details.

Remove a Payment from a Bank Deposit

Have you added a payment by mistake? Not an issue if you want to remove a specific payment from a deposit:

Step 1: Select All Sales

Head to Sales and choose All Sales.

Step 2: View/Edit and remove the Payment

Click View/Edit to find and open the payment you’d like to remove. The status should be Closed.

Step 3: Unmark the Checkbox 

Unmark the checkbox for the payment you wish to remove.

Step 4: Finishing up 

Press the Save and New or Save and Close buttons.

The payment will go back to the Undeposited Funds account. You can easily add it to another deposit.

Delete a Bank Deposit

If you need to start over and delete a bank deposit, do the following:

Step 1: Add Chart of Accounts

Navigate to Transactions and then choose a Chart of accounts.

Step 2: Locate the Bank Account 

Find the bank account you put the Deposit into and then click on Account History.

Step 3: Search for the Bank Deposit 

Look for the bank deposit and select it to get more details.

Step 4: Select Delete

Hit the Delete icon.

Step 5: Finishing up 

Press Yes to confirm.

All payments on the Deposit go back to the Undeposited Funds account. You can start over and create a brand-new deposit. 

Bottom Line!

A certificate of Deposit (CD) is a savings account that holds a fixed amount of money for a fixed period of time, such as six months, one year, or five years, and in exchange, the issuing bank pays interest. When you cash in or redeem your certificate of Deposit, you receive the money you originally invested plus any interest. CDs (certificates of Deposit) are considered to be one of the safest savings options.