I want to deactivate Uncategorised Income - but it says You can't merge any account with Uncategorised Income because it is reserved for the Online Banking feature.

I appreciate the time and effort you took to write down your concerns, Suman. Let me pinpoint why the message appears when you deactivate uncategorised income in QuickBooks Online.

The Uncategorised Income is one of the default or special accounts generated when specific actions or features are enabled in your QuickBooks settings. This is used to temporarily hold money in transactions that have not yet been categorized into more specific income accounts. 

Since we're unable to deactivate or merge this account, we can change the account name within the Chart of Accounts to add a unique indicator.

Here's how:

1. Navigate to  Settings and pick the Chart of Accounts.
2. Locate the Services account in the list.
3. In the Action column, select the dropdown menu. Then pick Edit.
4. Change the Name (or Category name) field.
5. Choose Save and Close.

Alternatively, we can review the transactions and categorise them into appropriate income accounts to prevent them from being classified as Uncategorised Income.

We can also set up rules that automatically categorise transactions for you. Refer to this page for the complete instruction: Set up bank rules to categorise online banking transactions in QuickBooks Online.

Know that we'll keep an eye on your response. We are here to sort everything out, especially for default account concerns. Keep safe.

Thanks for the response, we have created other account as "Uncategorized Income", can you please tell us how we can merge it with "Uncategorised Income". We tried to merge it but it says -"You can't merge any account with Uncategorised Income because it is reserved for the Online Banking feature."..

Can you please help us to merge them?

Let me join the conversation to clarify things, Ankit.

The reason you can't merge your newly created account "Uncategorized income" with "Uncategorised income" is because "Uncategorised income" is a default account created by QuickBooks Online (QBO).

When transactions are downloaded into QuickBooks Online, QBO can't always figure out how to categorize the transaction. In such cases, QBO assigns the "Uncategorized Income" account to amounts received and the "Uncategorized Expense" account to amounts paid.

I suggest categorizing your transactions by selecting the appropriate category or account from your chart of accounts. Here's how to do this:

1. Go to Settings, and select Chart of Accounts.
2. In the account list, type Uncategorized Income.
3. Choose the transactions that you'll want to run.
4. From the Action column, click the drop-down arrow.
5. Select Edit.
6. From the Account window, you can now change it to the correct account.
7. Click Save and Close. 

That should do the trick. Furthermore, I'd like to share this helpful article that you can use as a reference in the future: Customise reports in QuickBooks Online.

I'll be looking out for this thread if you have more queries about deactivating "uncategorised" income. Feel welcome to reply anytime. The Community has your back. Take care!

Thanks, this is helpful. I have moved transactions from "Uncategorized Income" to "Uncategorised Income". Now that there is no transaction left in "Uncategorized Income", I want to deactivate it or merge it with "Uncategorised Income" as I don't want to use the "Uncategorized Income" account anymore, please let me know how can I do this?

We'll have to deactivate the Uncategorized Income account (manually added) to help keep your chart of accounts well-organized, Ankit. I'm here to assist you and ensure everything goes smoothly.

As previously stated by my peer, the Uncategorised Income is one of the default or special accounts reserved for the bank feeds function. We can't merge it at this time, so we will have to inactivate the other Uncategorized Income (one added) to remove it from the list.

Here's how:

1. Navigate to the Transactions menu on the left panel and select Chart of accounts.
2. This action will open a screen that displays the list of your categories and accounts.
3. From there, look for the Uncategorized Income account and click the Run report link to select Make inactive (reduces usage).
4. Press the Yes, make inactive button to confirm the action.
   
   

For tips on when to permanently delete an account or deactivate one, click the following link to view the complete details: Make an account inactive on your chart of accounts in QuickBooks Online.

Furthermore, these resources include information on merging accounts, organizing lists, and preventing deactivated accounts from appearing in reports:

• Merge duplicate accounts, customers, and suppliers in QuickBooks Online
• Remove deleted accounts from reports in QuickBooks Online
  
  

Reconcile your bank and credit card statements each month to keep your books in order. If you notice any discrepancies, check out the articles below for solutions on how to handle them:

• Fix issues the first time you reconcile an account in QuickBooks Online
• Fix issues for accounts you've reconciled in the past in QuickBooks Online
  
  

Fill me in if you have additional questions about managing your chart of accounts and other product-related concerns. We're always ready to lend a helping hand.  

Thanks for the steps, i tried it but it shows "Uncategorized Income" This special account is used for cash basis accounting on payment transactions. You can't delete it."

I cannot deactiavte it, not sure why as "Uncategorised Income" is a special account not "Uncategorized Income"

Let me provide some information about Uncategorised income, Ankit.

Once you create your company, specific default accounts are created in your chart of accounts depending on the business entity you've selected. In the same instance, special accounts are also created when certain features are turned on in QuickBooks settings. This means that you're unable to deactivate both accounts, but you can edit names for special accounts to reflect your main revenue type.

If this Uncategorized Income that you're referring to is the account that you've created, you should be able to deactivate it by following the steps below:
 

1. Go to the Gear icon and select Chart of accounts.
2. Find the Uncategorized account that you want to delete.
   
3. Select the Action dropdown and select Make inactive.

To learn more, read this article so you'll understand which accounts you can edit, merge, or make inactive: Manage Default and Special Accounts in QuickBooks Chart of Accounts.

In addition, reconcile your accounts so you can always match your bank and credit card statements. I've added this article for more details: Reconcile An Account in QuickBooks Online.

Let us know if you need any other questions about uncategorised income or making accounts inactive. We'll always be right here to help.

Its still not working, there are 2 accounts "Uncategorized Income" and "Uncategorised Income", we want to keep Uncategorised Income". i cannot deactivate "Uncategorized Income", I am not sure which one I created or which one is default account. But as per your comments before "Uncategorised Income" is the default account, right?

Let me direct you to the right support to help you check on this and understand why it's happening, Ankit.

You will always get an error message once you set a special or default account to inactive. When using QuickBooks Online (QBO) International version, we always recognize the Uncategorised Income account as a default account if this is created automatically by the system to track money your business earned or spends that still needs to be categorised.

This Uncategorized Income that you see doesn't fall under default or special accounts as you're using the International version and not the US ones. Therefore, you should be able to set this as inactive since this is a user-created account. 

Since you're unable to do this, I recommend reaching out to our support team so they can help you check why this happening and investigate further. They have the tools to pull up your account in a secure environment. To do so, follow the steps outlined below:

1. Sign in to your QBO account.
2. Go to the Help (?) menu.
3. Click Search, and then Contact Us.
4. Type in " Default account", and click Continue.
5. Select the Chat with us option.

Furthermore, QuickBooks Online (QBO) provides a variety of reports that cater to your business. You can learn how to customize them to ensure you'll get the information you need most. For more details, I've added this for you to go over: Customise Reports in QuickBooks Online UsingModern View.

Please get back to us if you need further assistance when deactivating accounts. We're always right here to help you.