Undeposited funds not clearing.

Let's make sure Undeposited funds will clear, HHC1.

Once you process invoice payments, the Undeposited Funds account holds customer payments in QuickBooks until you deposit them at your real-life bank. That's the reason why it is still showing in your UF account.

When making deposits, you'll have to include and select the payments that you've received. You'll also want to ensure that you've combined them so you can put them in the correct account. To do this, follow the steps below:

1. On the Homepage, select Record Deposits / Make Deposits.
2. In the Payments to Deposit window, select the payments you want to combine. Then select OK.
3. In the Make Deposits window, select the account you want to put the deposit into from the Deposit to dropdown.
4. Check the deposit total. Make sure the account and selected payments match the deposit slip from your bank. Use your deposit slip as a reference.
5. Enter the date you made the deposit at your bank.
6. Add a memo as needed.
7. When you're done, select Save & Close.

Once done, delete the deposit that you have previously created. Here's how: 

1. Go to the Lists menu.
2. Choose Chart of Accounts.
3. Locate and then double-click the Undeposited Funds account to open it.
4. Find and then right-click the duplicate transaction.
5. Choose Delete Payment or Delete Deposit.
6. Select OK to confirm the changes.

Please know that only transactions currently in your Undeposited Funds accounts appear in the Bank Deposit window. On the other hand, to make sure that transactions will clear, make sure to match instead of adding.

For your reference, you can run reports and filter them according to how you want the information to show. Please go through this article for your guide: Customize Reports In QuickBooks Desktop.

Please touch base with us if you have further questions about Undeposited Funds and making deposits. The Community is always here to help you 24/7.

Yes after receiving the payment and I'm ready to go to the bank, I make the deposit in QB.  This is done at the time I'm ready to travel to the bank so I can verify my bank deposit adds up to my QB deposit BEFORE giving it to the bank instead of fixing it after the fact.  Even though I am correctly utilizing make deposits, it still shows in the QB register as undeposited funds.

I should have added that the undeposited funds register, shows the payment coming in as PMT and an increase in the ledger.  It also shows the payment going out but it doesn't say DEP it remains blank with the decrease and the ledger balance being zero.