This post is for users who take advantage of QuickBooks integration with Intuit Merchant Services. Deposits for MasterCard, VISA, and Discover are made as a single deposit and deposits and fees can be posted to QuickBooks at the push of a button. This is a great time saver and gives you excellent reporting in QuickBooks for credit card transactions
When a credit card charge is processed from the “Create Sales Receipts” form in QuickBooks, a credit is made to the appropriate income account and a debit is made to “Undeposited Funds”. This includes information such as the date, the amount of the charge, and the customer.
When you download deposits from Intuit Merchant Services, the individual transactions in that deposits are posted as credits to the “Undeposited Funds” account and a single debit is made to the bank account.
The single debit to the bank account will match the deposit transaction on the bank statements, making bank reconciliations easy. Unfortunately, AMEX does it’s own credit card processing and AMEX the credit at a transaction level to undeposited funds, the debit to the bank account and recording of merchant fees have to be done manually from AMEX statements.
Robert Guild is certified QuickBooks ProAdvisor in Austin, TX who conducts CPE courses for CPAs and individual training and group classes to QuickBooks users. His company at www.QBCoach.biz, maintains a sixteen-station QuickBooks lab, providing hands-on training. You can contact him directly at rguild@QBCoach.biz or follow him on twitter at QBPro