Can the undeposited funds feature be turned off on QBO? If so, how?

Hi cdspoon,

In QuickBooks Online, it's not possible to turn off the Undeposited Funds account as it serves as a default holding account for funds received but not yet deposited into a bank account. Because of this, we are unable to turn off that account.

On the other hand, PayPal Payments should automatically update, like in the QuickBooks Payments. If funds are deposited in your bank account, a deposit will also created to transfer funds from the UF account to your bank account. If not, you can manually deposit the money from the UF account to your bank account. 

Feel free to go back to this thread if you have other questions in mind. Take care and have a good one!

Thank you. It's good to know the putpose of undeposited fu ds account. I'm still having an issue with undeposited funds and PayPal. I can seem to reconcile  PayPal even though I have checked each transaction and now my transactions are duplicate.

Hello, cdspoon. 

Thank you for adding more information to your query. Upon reviewing your question, I noticed a similar query was posted in our Community forum, and my colleagues have already provided a solution. Therefore, visit the Community forum and click on this link to route you to the posts answered by my co-expert. https://quickbooks.intuit.com/learn-support/en-uk/banking/re-reconciling-paypal-bank/01/1362630#M166...

Once you find the post, you can go through the solution provided by my colleagues to see if it resolves your query. If you have any further questions or concerns, please don't hesitate to let me know, and I'll be happy to assist you further. Have a great day!