You might want to re-read the posts above, where you will see multiple issues with this account. 

you are charging my credit card for a monthly payroll fee, and at the same time disabling the payroll program on my quickbooke program....that is dishonest...

shame on intuit.. you disabled my payroll program and at the same time billed my credit card for the payroll program monthly fees....

Hi parkingjim.

A payroll service will be cancelled if we're unable to collect a payment for it, which is contrary to your situation because the payment was made on the same day. We'll see what happened and we'll help you get back on track.

I would encourage you to reach out to our Phone or Chat team. They have the tools to check your account history and see why it was cancelled. 

1. Click on Help.
2. Choose Contact us.
3. Write a short description of your concern in step 1. Example: cancelled payroll
4. Click Continue.
5. Choose from Chat or Request for a callback.

We're just around if you have other questions.

Perhaps it is supposed to be a default account. However, I do not have an Undeposited Funds account in my chart of accounts either. 

 Thanks for joining the thread, @A_J.

You're right, Undeposited Funds is a default account in the chart of accounts. It might be renamed which is why you can't find it. To confirm, let's go ahead and check it:

1. Go to the Gear icon in the upper right.
2. select Chart of Accounts.
3. Scroll down to find the Undeposited Funds from the Detail Type column (there should only be one Undeposited Funds account in QuickBooks Online).
4. Once you find it, click the drop-down arrow and click Edit.
5. Update the name according to your preference.
6. Once done, click Save and Close.

For future reference, you can read through our help article: Deposit payments into Undeposited funds account in QBO. It guides you in how to put payments into the Undeposited Funds account if you need to combine them into a deposit in QuickBooks Online.

Let me know if you need anything else. We're always happy to help. 

The undeposited funds account is a temporary account for funds in your possession or waiting in the cash register to be deposited. Company owners that wait, say a week to go to the bank, will hold the money in a safe until taken to bank.

So not to lose control and be able to close daily sales, the amount is sent to the current asset “undeposited fund” account. This amount will show in the balance sheet as part of the assets of the company.

So to begin with you properly created the transit account like you mention.

There is one step pending.

Once the money and checks are sent to the bank, there has to be a transfer made from “undeposited funds” to the “bank” account.

So the steps are as follows #1 create the transit account, #2 transfer funds when deposit to bank account is done

So step #1 as follows:

#1 How to create a new Undeposited Funds account

Go gear (top right) / Cart of accounts / new

Or

Left down to Accounting / Chart of accounts / New

Account Type: Current assets

Detail Type: Undeposited Funds

Name: Description of your choice

Save

Step #2 the transfer

#2 Go to Gear (top right) / Transfer

Transfer Funds From: Undeposited funds account

Transfer Funds To: Checking account

Transfer Amount: Amount to transfer

Date: Date of Transfer

Save

I'm using QBO and UF is not a default account for me either.  It appears that it was a default created account in the past, but it is not present in my COA.

Hello there, @HappyDay2All, 

It might be the account was renamed since this is automatically created when you set up QBO. This is only the possible reason why the Undeposited Funds (UF) account isn't present in your COA. To help fix this, you'll have to go to the Chart of Accounts menu. Then, scroll down and make sure to focus on the Detail Type column so you can see the UF account. Please refer to the steps provided by katherinejoyceO above. See the screenshot below for your visual reference. 

If the UF account is still missing, you'll have to create a new one. I'll guide you through the steps. 

1. Go to Accounting from the left menu,
2. Select Chart of Accounts.
3. Click the New tab.
4. Choose Other Current Assets as the Account Type.
5. From the Detail Type drop-down, choose Undeposited Funds.
6. Type in Undeposited Funds as the Name. 
7. Enter the necessary information.
8. Click Save and Close.

The screenshot below shows you the last five steps. 

Once done, you can now deposit payments into the UF account until you deposit them at your real-life bank. This ensures QuickBooks always matches your bank records. Also, you can easily reconcile your account. 

I'm just a post away if you need anything else. Have a great day, @HappyDay2All. 

I had the Same Issue it is in the Preferences

Click Edit - Preferences - Payments - Company Preferences (Check) Use Undeposited Funds as a default deposit to account.

I found the issue trying to print Deposit Slips

The Undeposited Funds account is Created by checking the box under:

Edit - Preferences - Payments -Company Preferences - Use Undeposited Funds as a default deposit it account.

I found this issue while trying to print out Deposit Slips for customer payments.

The default undeposited funds account does not exist in my chart of accounts. I followed steps and in chart of accounts list selected "include inactive," the account is still not there. I went to preferences>Payments>Company Preferences and the check mark is in "use undeposited funds as a default deposit to account", unchecked it, rechecked it, went back to chart of accounts including inactive and STILL NOT THERE. The steps in this conversation do not work. I need that account and I understand it cannot be added, and can only use the default account, but what if that account is not there?

Hey there, @Susan1216. 

Thanks for taking the time to follow along with the thread. 

Since you do not see the account, I recommend contacting our Technical Support Team. This way, one of our tech agents can review your account in a secure environment and use their tools to remote into your screen to investigate this matter further. You can use the link I've included below to connect with an agent. 

• QuickBooks Technical Support

Please let me know if you have any questions or concerns. I'm always around to lend a hand. Take care! 

The account "Undeposited Funds" is unique to QB and does not exist in any other system I have ever seen and personally I would never use that account, since it is an extra step of course and goes against accounting norm.

Accounting 101 defines "Accounting" as recording business activities. So, no deposits should be recorded until the money has physically been deposited into the bank. 

Our point of sale software does not come into qb as the total, but several line items in a journal entry so matching them with the bank feed I have to select several entries so an undeposited funds account makes this easier to do. Otherwise I have to manually go into each pos entry and edit entries to be able to match. 

I don't have an Undeposited Funds Account either!

Hello there, @BC58. This isn't the experience we want you to have. No worries. I'm here to help you locate your Undeposited Funds account in QuickBooks Online. 

This default account is created to hold all payments that still need to be deposited in the bank. If you can't see the Undeposited Funds account, here are the possible reasons why:

First, your QuickBooks account is using a different name for the account. Please check if there's an account named Payments to deposit since a newer account uses this instead of Undeposited Funds.

Second, it was edited. To check: 

1. Go to the Gear icon, then choose Chart of accounts.
2. Click Ctrl + F, then type in Undeposited. The search result should show the undeposited fund under the DETAIL TYPE column.
3. If there is, click the dropdown under ACTION column, then select Edit.
4. Rename the account to Undeposited Funds to easily recognize it moving forward.

Third, the account has been made inactive. To view inactive accounts, click the Gear icon below the New button on the Chart of accounts page, then tick the Include inactive option.

If you have verified all of the above and the Undeposited Funds account is still missing, let's create a new one:

1. Go to the Gear icon, then select Chart of Accounts.
2. Click the New tab.
3. Select Assets. From the Save account under dropdown, choose Other Current Assets.
4. In the Tax form section dropdown, choose Undeposited Funds.
5. Use Undeposited Funds as the account name for easy recognition.
6. Fill in the other necessary information.
7. Click Save.

Additionally, ensure that you reconcile your accounts to keep them accurate and up to date.

Please let us know if you have further concerns about your Undeposited Funds account. We're here to help you.