I use QuickBooks Online and QuickBooks Payments. When payments are received, I match transactions with invoices. How can I NOT use undeposited funds account?

Hello there, @blissbridal.

QuickBooks Online will record the deposit to the account you've selected when setting up the QuickBooks Payments. After the customer pays the invoice online, it will be recorded to the correct account.

To verify the account, you can check out the steps below:

1. Go to Settings and select Account and Settings.
2. Go to the Payments tab.
3. In the Chart of Accounts section, you will see the account you've selected.

I've added an article for more details about the process: Record invoice payments in QuickBooks Online. 

When you're ready to match the transactions, you can check out this reference to guide you through the steps: Categorize and match online bank transactions in QuickBooks Online. 

If you need further assistance or other questions, please don't hesitate to let me know in the comment section. Take care.

Hello! Thank you for getting back to my question. 

To verify the account, you can check out the steps below:

1. Go to Settings and select Account and Settings. Go to the Payments tab. In the Chart of Accounts section, you will see the account you've selected

I did this. My checking account is listed as a deposit account for standard deposits. I didn't set up instant deposits.

These payments show up on the bank register as "Undeposited Funds" and I don't know how to change them (I want to categorize them as sales).  I basically want these payments to be deposited directly to the checking account.

Your advice will be greatly appreciated. Thank you!

Sugako 

I appreciate your effort in performing the troubleshooting steps, @blissbridal. 

QuickBooks offers two ways when receiving payments. You can use your bank account or the undeposited fund's account.

The Undeposited Funds account holds everything before you record a deposit. If you're using QB Payments, we automatically process and moves transactions into your accounts. You don't need to use the Undeposited Funds account.

However, in QuickBooks, you can choose the bank in the Deposit to the field to directly post the payments you received. I'd be glad to show you how:

1. Click on the + New button.
2. Select Receive Payments
3. Choose the account where you want to deposit the payment directly from the Deposit to dropdown.
4. Click Save and Close

You can also log in to the merchant center to verify the account used when receiving customer payments. If you've already checked the account and you're still getting the same result, please contact merchant support.

Here's an article for more information about recording bank deposits: Record and make bank deposits in QuickBooks Online.

Let me know if you have more questions. I'll be happy to answer them for you.