Is Uncategorized Asset the same as Undeposited Funds?

Welcome to the Community, @WVVP.

I'll make sure you'll be able to find the Undeposited Funds in your QuickBooks Online account and correct the Profit and Loss report.

You can find the Undeposited Funds under the Chart of Accounts.

Here's how:

1. From the left menu, click on Accounting.
2. Choose Chart of Accounts.
3. Under DETAIL TYPE, look for Undeposited Funds. It should be there.

Once you find the Undeposited Funds, make sure all payments will go there. From there, you can easily deposit the funds to the right bank account.

To avoid the duplicate transaction, since you already have a sales receipt, delete the same transaction that you added under the income account.

I'm adding these articles for your reference about Undeposited Funds and depositing to a bank account.

Get back to me if you have any additional questions about Undeposited Funds. I'm just a post away.

Thanks! I found the Undeposited Funds account.

So if I do a sales receipt. I still need to do a bank deposit even if the transaction is already in the banking tab ready to be categorized? I have found that doing the sales receipt AND doing the bank deposit leaves me duplicate transaction when I categorize in banking. I hope this make sense. I'm still new to QBO.

Also does this same concept (needing to do a bank deposit) apply to invoices (that were paid outside of QBO)?

Thank you for getting back, WVVP. 

I'm here to share with you some additional information about sales receipts and the transactions on the Banking page.

If your bank account is connected to QuickBooks, the system will automatically download your recent bank statements. Thus, you don't need to record your transactions from the +New icon manually. All you need to do is to categorize and review the transactions from the Banking section.

Here's how:

1. Sign in to your QBO account.
2. Click on Banking or Transactions at the left pane, then go to the Banking page.
3. Select your account, then go to the For review section.
4. Categorize the transactions from there.

If you've already recorded your sales receipts, you can always match your transactions to avoid duplicate records.

1. From the For Review tab, select the downloaded transaction.
2. Tap on Find match.
3. Match the entries from there.

I'm adding this link for more hints about reviewing your bank statements from the Banking page: Categorize and match online bank transactions in QuickBooks Online.

On the other hand, here's how you can learn more about handling our invoices and receive payments: Create invoices in QuickBooks Online.

Once you're done reviewing your bank transactions, you're now ready to proceed with your reconciling your account to balance books.

Makes sense, thank you!