Help!! Moving Matched Deposits from Bank Feed to a Sales Income Account

I can see that you're using a direct method to record daily sales, SNicosia09. Allow me to share insights on how to handle those deposits.

In QuickBooks Online, you'll normally create invoices or sales receipts to log the sales. Then, post the payment to the Undeposited Funds account until you're ready to combine them. Next, you'll have to enter a deposit to move the money to the appropriate bank so QBO always matches your real-life company transactions. 

After that, match it to the downloaded entry on the Banking page to link them together. With this workflow, you'll be able to track your cash flow, receivables, and profitability more accurately. 

In your case, you'll need to create another journal entry to transfer the funds to the correct income account since there are no sales and service items involved. I recommend consulting an accounting professional in performing this action to ensure that everything will be recorded precisely.  

1. Click the + New button.
2. Select Journal entry.
3. On the first line, pick a category from the Account field and enter the amount.
4. Select the other account you're moving money to or from on the next line.
5. Make sure that the numbers in the Credit and Debit columns are the same.
6. Add a memo as needed so you know why you made it.
7. Hit Save and close.

Finally, I'm adding this article to learn how to speed up the review process of your downloaded bank and credit card transactions in the program: Set up bank rules.

Be sure to let me know how else I can empower you to make QuickBooks work the way your business needs. Thanks for coming to the Community, wishing you continued success.

I followed your recommendation, but I found in order to remove the undeposited funds I need to credit it and I'm only able to debit from there, leading to a negative income deposit.. Any work around suggestions?