How do I keep matches out of Undeposited Funds?

Hi there, @GiuliettaM.

When matching the transactions to the correct account, it can get the transaction mixed up and placed into another account. So then this requires you to undo the transaction and change it to the correct placement. Changing it back a few times will allow it to stop making the "correction" and be put back into the right account. 

I have a link that helps explain this exact situation and how to correct it as I just stated. You can go to Fix my Transactions. Please don't hesitate to reach back out to me, as I'm always here lending a helping hand. Have a great weekend!

I want to keep it from going into Undeposited Funds in the first place. I don't want to have to check every single transaction match to then undo and rematch it. Also I tried this morning to unmatch and rematch and it keeps going into Undeposited Funds. How do I keep this from happening?

Thanks for your response, @GiuliettaM.

At this time, the option to set a default Deposit To account when receiving payments is unavailable. It used the last bank account based on the previous transaction created.

You’ll have to make sure that when you create a payment, you don’t use the Undeposited Funds.

Also, I've attached a couple of articles here for the detailed steps of recording invoice payments for your reference:

• How to Link Deposit to an Invoice?
• How to Record a Customer Payment?

Should you have other questions, comment below. I’m here to lend a helping hand. I hope you have a wonderful day.

The thing is I'm not creating anything, and I'm using the "match" option under the bank account, I'm matching it to an imported invoice. I'm matching it under the banking tab, so shouldn't it go to the bank account that it's already showing up under? I've attached a screen shot, I'm in the banking tab under our connected "PayPal" bank, but the money is not going to PayPal it's going to undeposited funds. Why, if it already knows the money is in PayPal is it going to undeposited funds. I can't delete the undeposited funds account so I need another way to make sure it doesn't end up there.

Hello there, GiuliettaM.

You can check the Find Match in the Banking page. Let me guide you thorough the steps below:

1. Log in your credentials in QuickBooks Online.
2. Go to the Hamburger icon and click the Banking tab.
3. Under the For Review tab in the Banking section.
4. Click on the transaction and click on the Find match.
5. Verify the transaction and hit Save.

Also, I added the screenshot below so that you'll be guided:

For future reference, you can check this article: Manually upload transactions into QuickBooks Online.

Please comment below if you need further assistance. I'm here to back you up. Have a good one.

That is what I'm doing exactly, but it is going into Undeposited Funds, from that action that you just described. Sorry if I wasn't clear enough.

I can help you get this fixed, GiuliettaM.

Undeposited Funds is a default account in QuickBooks that holds funds from payments to your company until you deposit them to your bank account. Though we have matched it to an invoice, it'll still be on the Undeposited Funds account. That's why we'll need to create a deposit to post it to the correct bank.

Here's how:

1. Click the +New icon and choose Bank Deposit.
2. Select the correct account, date, and the payments included in the deposit.
3. Click Save and close.

You can learn more information about recording deposits in QBO in this article: Record and make Bank Deposits in QuickBooks Online.

If you have any other concerns about managing your QuickBooks accounts, please feel free to comment below. I'm always here to help you out.

Hi, sorry I'm still not understanding, the deposit is what I am matching to the invoice so why would I create a deposit when I already have one? I have it linked to our bank accounts so that I don't have to create deposits, just match them to the invoices. I don't see any logical reason why it should go to Undeposited Funds. Is this maybe something I need technical support for then?

Hello there, GiuliettaM. 

We want to sort things out with you. With this, I suggest reaching out to our Phone Support Team so they can look into your accounts and bank feeds. They can walk you through in process of matching the deposits to existing invoices. 

Here's how to contact us within QuickBooks:

1. Go to the Help icon and click Contact us. 
2. In the What can we help you with? space, enter your question something like Matching Undeposited Funds deposits to invoices.
3. Select Let's talk. 
4. You can connect with us through Chat, Call, or Get a callback. 

Here are a few articles here that will help you manage your bank feeds and reconcile your accounts. 

Feel free to get back to us if you need more help. Thanks!

This is ridiculous I am having the exact same problem. You all have not even helped one bit. We are not creating a transaction inside QBO, simply matching them to reconcile inside an auto feed bank account. For example Housecall Pro processes my invoice and sends a copy of the client info to QBO and also puts the Actual money Deposited into my bank, the actual bank account.  Next QBO sees the money hit my bank account feed for my business transactions. No matter what I do to reconcile when inside the bank feed, matching clients to the deposit inside the bank feed creates an undeposited funds. Which is completely wrong since obviously it has been deposited already.

You have failed to understand adequately what is going on. How to change the function of the default to undeposited funds should be what your explaining . We are utilizing third party transaction management tools to put money directly in the bank. No need for undeposited funds to be associated with every payment. I deposit funds immediately every time. I am 50k off on the undeposited funds account thanks to my ignorance. I do not understand how to fix this with out creating more problems.

There is an explanation, @Richard Head. I would be happy to share it with you to guide you along the way.

I'm determined to improve your experience with our support. I'll ensure that your banking transaction is handled transparently.

All transactions coming from online payments are usually deposited to Undeposited funds. The reason behind this is that QuickBooks Merchant transactions have a time frame. Regardless of your deposit into the Merchant Service Center is your checking or savings account.

With this, I'd recommend manually depositing the funds in your QuickBooks. Please note that all information you have entered into your account is for recording purposes only. Also, don't worry because your money will settle down in time with your actual bank. For more details, check out this link: Common questions about payments deposits in QuickBooks Online.

Moreover, check out these articles below to know more about undeposited funds and reconcile in QuickBooks: 

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

If you still have questions in mind, please let me know by leaving a comment below. I'm always here to help you again. Keep safe, Richard Head.

Hi, I know this is an older post, but I don't think people have answered it, so thought I'd give it a shot. I had a problem with Quickbooks defaulting linked deposits from my bank account going into undeposited funds, even though they were already deposited into the bank account. To fix this, I clicked on the linked transaction, clicked on transaction type and changed it from Sales Receipt to Deposit, and then categorize it the way I normally would with a deposit/sale.
For example, I am working with a linked Paypal account. I have it linked to my Quickbooks Online. I go to the Banking tab under the Banking section. I see listed transactions that include transactions that have been deposited. I click on one of the transactions, make sure the Categorize dot is filled, click on the drop down arrow for Transaction Type and change it from Sales Receipt to Deposit. I make sure the Vendor/Customer is correct and choose the category I normally would for a sale (I choose Paypal Sales since it's through a Paypal account) and click Add. I see that the transaction doesn't go through Undeposited Funds at all and affect my other accounts correctly.
Hope this helps.

No it doesn't settle down and your online support has you do things over and over then says we will tag for engineers to look at it. Very frustrating. All our categorized PayPal transactions add and reconcile but they also go to undeposited and sit there. And even though transfers done and receipts are in proper category, you still  have everything in undeposited funds. Support says to manually delete items from undeposited register each time.