Invoice payments going to Undeposited Funds account

Thanks for adding details to your concern, @CTGenarda.

I'll help you handle your transactions from the Undeposited funds in QuickBooks Online.

Since those past transactions were added through your bank, we can utilize the reclassify transactions tool to batch edit them and move them into a different account. Please know that this feature is exclusive to QuickBooks Online Accountant and Advanced versions. However, you'll need guidance from your accountant to ensure the accuracy of your books. If you're not affiliated with one, you can utilize our accountant tool to look for one in your area.

Otherwise, we can manually Undo those categorized transactions from the Banking page. Here's how:

1. Go to the Transactions menu, then choose Bank Transactions.
2. From there, go to the Categorized tab.
3. Filter the date to show those past transactions.
4. Find those transactions and click Undo.

Once done, you can go back to the For Review tab, then put them into the right account.

Let me share with you this article for more insights about the account: 

What’s the Undeposited Funds Account? 

Moreover, I'd also like to give you these articles for additional guidance and reference about using the Undeposited Funds account in QBO:

• Learn About the Chart of Accounts in QuickBooks
• Record And Make Bank Deposits in QuickBooks Online

You can always rely on us here in the QuickBooks Community for additional assistance in managing your customer payments and other transactions in QBO. I'll be right there to help you whenever you need it.

Thanks for getting back to us, @CTGenarda. Let me outline the steps to resolve your balance issues with the Undeposited Funds account in QuickBooks Online (QBO).

It's possible that you've added the bank transactions instead of matching them, which is why your Undeposited Funds account shows duplicate entries. 

Let's go over your bank feeds to undo the categorization and match it to the invoice payment. Here's how:

1. Go to Transactions, then Bank Transactions.
2. Select the bank account tile. 
3. Go to the Categorized tab. Put a checkmark on the boxes for the transactions in question and click Undo.
4. Select Continue.

Then, match the transaction. To do that:

1. Go back to the For Review tab.
2. Select the Match radio button.
3. Tick the box of the invoice payment and click Match.

For more information, please refer to this article: Match online bank transactions in QuickBooks Online.

Furthermore, it's recommended to perform monthly reconciliations in QBO to ensure they match your bank statements.

Feel free to get back to us whenever you need help clearing your Undeposited Funds account in QBO. We're always here to assist. Stay safe.