Your confusion ends here, @kelly34.

Allow me to fill you in on everything you need to know about the Undeposited Funds account.

The Undeposited Funds account is used to hold the payments you received from invoices. Thus, the amount from this account will be cleared once it's already deposited.

To learn more about the Undeposited Funds account, you can read these articles for further information:

• What’s the Undeposited Funds account?
• Using Undeposited Funds in QuickBooks Online

You might also want to review all the sales transactions made in QuickBooks. You can go to the Sales menu and select All Sales.

Please know that I'm just a reply away if you need any further assistance managing your transactions. Wishing you all the best, @kelly34.

I have been receiving payments against invoices for cash and checks. Then I make a bank deposit by “adding funds” to this deposit.  Now I have a series of both types of transactions across multiple months. To fix fo I need to rerun reconciliations for prior months and delete the deposits.  If I try to convert the receive payments to “ reconciled” manually it says current starting bss as lace is off.   Am I not supposed to “ receive payments when manually creating deposits?  

Let me provide some information about making deposits in QuickBooks Online (QBO), NormHCP. 

If your bank records a single payment, we can directly put the payment into your account and skip the default one. Here's how:

1. From the + New icon, select Receive Payment.
2. Find the name of the customer from the drop-down menu.
3. From the Outstanding Transactions section, choose the transactions.
4. Select the payment method.
5. Choose your checking account.
6. Once you're done, press Save and close.

If you need to group multiple payments, use the Undeposited Funds account. Doing so will record the payments as a single record. Then, you can make a bank deposit to combine them in QuickBooks. To fix the balances, we can manually reconcile the transactions. Here's how: 

1. If your accounts are connected to online banking, make sure you match and categorize all of your downloaded transactions.
2. Click the Gear icon and then Reconcile. If you're reconciling for the very first time, tap Get started to continue.
3. From the Account dropdown, select the account you want to reconcile. Make sure it's the same one on your statement.
4. Review the Beginning balance. Then, make sure the beginning balance in QuickBooks matches the one on your statement. Here's what to do if they don't match.
5. Enter the Ending balance and Ending date on your statement. Some banks call the ending balance a "new balance" or a "closing balance".
6. If you see it, review the Last statement ending date. This is the end date of your last reconciliation. Your current bank statement should start the day after.
7. When you're ready to start, press Start reconciling.

To learn more about this one, see the Reconcile an account in QuickBooks Online article. Feel free to visit our Banking page for more insights about managing your bank feeds and reconciling accounts.

If you need to take care of other things in QuickBooks, I'm with you every step of the way. Just leave a comment below and I'll get back to you. Take care always. 

Since I now have multiple revived payments from prior reconciled periods do I redo the previous reconciliations and delete the original deposits that are duplicates of the received payments.  It definitely doesn’t like my marking previos received payments as reconciled

I can help you reconcile those transactions, @NormHCP.

You can manually tag those transactions as reconciled without undoing previous reconciliations. Also, only accountants, those who have QuickBooks Online for Accountants users can undo an entire reconciliation from your account. 

Here's how to tag those transactions as reconciled manually:

1. Go to the Accounting menu and proceed to Chart of Accounts.
2. Click View register of the account holding the transaction.
3. Select the transaction you want to reconcile to expand the view.
4. Go to the check column and click the checkbox. Keep selecting it until the box shows an “R.”
5. Select Save and then close the register.

Refer to the following article for more information about reconciling your transactions manually: Undo or remove transactions from reconciliations in QuickBooks Online.

In case you'll encounter errors in reconciling your accounts in the future, the following articles will guide you in resolving them:

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

Reach out to me again for any other reconciliation or QuickBooks concerns. I’ll get back to help and make sure you’re taken care of. Have a good one.

This works perfectly for me.  Now I can specify the deposit account when receiving a payment and skip the "make deposits" step altogether.  Thanks!

Once the deposits are made, you can go back on a specific date to see what was deposited.  This report has Received From, From Account ( which is from Undeposited Funds, which is how it is identified) and Memo Chk No.,  Payment Method and Amount. 

It is very handy when looking back to see if they match with the bank deposits.

It’s been almost an entire month and my funds have still not been deposited into my account from an invoice that has been paid! 
It’s extremely annoying that I can’t speak with a real person to resolve this issue. 

How were you able to fix this? I have my bank account automatically set up to import transactions. So it says I have my deposits, but in fact they are all still chilling in the undeposited funds account. I dont want to double add them to my operations account, but I have no idea what to do. This is my first month using QBO. I transferred from QBD. 

Hey there, @DM06. 

Thanks for chiming in on this thread. 

If none of the steps worked that my colleagues provided, I recommend contacting our Customer Support Team for further assistance. Here's how: 

1. Go to the Help icon in the top right-hand corner. 
2. Press the Contact Us button. 
3. Enter your question and tap Let's talk. 
4. Scroll down and select to Get a callback. 

It's that easy! 

Don't forget to keep us updated on how the call goes. We're always here to have your back. Take care! 

We setup a new company this year, when I go to the Bank Deposit to clear, nothing appears.  Do we have something wrong with the initial set-up?

Thanks

Donna

Hi there, donna.

Let me share some information on why your Bank Deposit appears to be empty and how we can isolate this.

First, payments not showing in the Bank Deposit might be because it was put into another account. To fix this, let's retrace your steps:

1. Go to Sales then select All Sales.
2. Locate the payments you're looking for. If you utilize online banking and the payments are not showing, make sure you've downloaded and categorized them.
3. Click on the transaction to open.

         4. Review the Deposit to field and be sure to select Undeposited funds.

        5. When done, click on Save and close.

Now, let's go ahead and create a bank deposit by clicking o the +New icon and then selecting Bank Deposit. The payment should now be showing in the "Select the payments included in this deposit" section of the Bank Deposit window. Follow the steps to make a bank deposit then.

However, if you still don't see the payment in the Bank Deposit window, let's proceed and check your previous bank deposits:

1. Go to the Sales menu and select All Sales.
2. Locate and click on the transaction to open. If you see a blue date link to the customer;'s name, the payment is already linked to a bank deposit.

 To add the payment to a new bank deposit:

1. Click on the blue date link to open the bank deposit.
2. Next to the payment, uncheck the box.
3. Click on Save and close. This will remove the payment from the deposit and send it back to Undeposited Funds.
4. Click on +New.
5. Select Bank Deposit.

The payment should now be showing in the "Select the payments included in this deposit" section of the Bank Deposit window. Follow the steps to make a bank deposit then.

I've also added an article that'll help you in reconciling your accounts so they always match your bank and credit card statements: Reconcile an account in QuickBooks Online.

Please don't hesitate to reach back here in the Community forum if you need further assistance in managing your bank deposits. We always got your back. Take care.