We'll guide you in managing your payments efficiently in QuickBooks Online (QBO), Sonia.
When recording deposits or payments in QuickBooks, you can specify the account to which the funds should be assigned. If you select a bank account (such as Checking or Savings), the transaction will skip the Undeposited Funds account and be entered directly into your bank register.
It's important to note that QBO doesn't have an option to set Undeposited Funds as the default account for all payments. Instead, it defaults to the last account used in the Deposit to dropdown.
To direct future payments to Undeposited Funds, select this account during your next transaction, and QuickBooks will use this selection as the default for subsequent entries.
Here’s how to do it:
- Navigate to the +Create menu.
- Choose Receive Payment under the Customers section.
- In the Deposit to dropdown, select either Payments to deposit or Undeposited Funds (depending on how your account is labeled).
- Save the transaction.

Following these steps will ensure payments are initially recorded in the Undeposited Funds account, simplifying the process of reconciling them with your bank statement.
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