Why do all my paypal deposits automatically go into "1299 Undeposited Funds"?

Hi there, @Open2day.

The settings in your Paypal account might be the possible reason that your deposits automatically downloaded into the 1299 Undeposited Funds account. We can check your Paypal settings. 

Here's how:

1. Go to the Banking menu.
2. Look for your Paypal account and then click the pencil icon.
3. Choose Edit settings.
4. Click the pencil icon to change some settings if needed. 
5. Once done, select Save. 

In case you're unable to change them, I suggest reaching out to the Paypal support team for further help.

You may want to check this article that will guide you further on how undeposited funds works in QuickBooks Online: Deposit payments into the Undeposited Funds account in QBO.

Don't hesitate to click the Reply button if you have other queries. I'll be glad to help you. Have a pleasant day.

Ok. I tried that, but there wasn't an option to choose a location, or category to post deposits. I'll try Paypal Support Team. Thx!

I checked my settings and there wasn't a place to select where the Funds would go; no drop down menus or anything to de-select Undeposited Funds.

This is my issue:

Why do all my PayPal deposits go to Undeposited Funds rather than the PayPal Bank account I set up?

I am trying to run a Custom Report that shows all Income from my Donors (Customers) year to date, however because deposits are in Undeposited Funds I am not getting an accurate look at all the deposit transactions placed by each donor (Customer). I need this information for my use and to help with tax reporting at the end of the year.

I've tried multiple ways from Bank Deposits for each transaction, to Sales Receipts. There some discrepencies that are not consistent. Some of my PayPal deposits are recurring from our website, and some were taken with a Point of Sale Paypal device. I'm not sure if that is also causing a problem. Whatever the case when I run a transaction Report by Customer not all of their monthly deposits are showing! This will really create a problem for me when I want to send them an End of Year Summary of their contributions.

Hello, Open2day.  

I appreciate performing the steps provided by my peer above. To isolate this case, we can perform basic browser troubleshooting by clearing the cache to fix the issue.    

There are times that the browser is full of frequently accessed page resources, causing some unusual responses. We can start by accessing your account in a private browser. This mode doesn't save your searches, visited pages, log in details, and cookies.    

You can use the shortcut keys that I've listed below.  

• Ctrl + Shift + P (Firefox) 
• Command + Shift + N (Safari) 
• Ctrl+ Shift + N (Google Chrome    

Once you're in the Private / Incognito Window, sign in to your QuickBooks account, and try deselect the undeposited funds. If it works, then you can go back to your original browser and clear the cache. Alternatively, you can use other compatible browsers. It could be that the one you're currently working on has a temporary issue with QuickBooks.    

Also, when receiving payment in QuickBooks Online, one possible reason why the paid invoices stay on the Not Deposited status is that you might have chosen the Undeposited Funds as the Deposit to account when receiving your client's payment.   

To change the status to deposited, then you may need to do Bank Deposit. Here's how to do it:  

1. Go to the + New icon and select Bank deposit.
2. Drop down arrow on the Choose an account, select the bank account you wish to deposit the payments.
3. In the Received from column, select the invoices by putting a check-mark on the box.
4. Then, click Save and close. 

Once done, go back to the Invoices page and the status should now change to Deposited.  

For your reference, you can visit this article for further guidance about receiving invoice payment in QuickBooks Online:  

• Record customer payment in QuickBooks Online
• Bank Deposits  

If the same thing happens. I'd suggest contacting our Customer Support Team. They'll be able to pull up your account in a secure environment and investigate what's causing this issue.   

Please let me know how it goes. I want to ensure that everything is taking care of. Have a great day, and stay safe always!

Hi there,

I'm having this same issue. I reconciled our Paypal Bank account and now I have this separate account for undepostied funds. I'm not sure what to do. I don't want to screw up my reconciliation of the paypal account that I've spent hours on - I had to use a work around to categorize each item and there were multiple missing transactions and duplicates. When I go to categorize them in the undeposited funds account, it ruins the reconcile I did for the paypal bank. What should I do?  

Thanks,

Jessica 

Hi Jessica!

Thanks for joining this thread. Let me help you in balancing your Paypal account.

The Undeposited Funds (UF) account is a temporary account that keeps a record of payments until you deposit them. I understand that you reconciled your Paypal account already. The reason why there are still pending transactions on your UF is that you never match the downloaded Paypal transactions to the entries you created in QuickBooks Online.

We need to match them to avoid duplicates and discrepancies. To do this, we need to undo your reconciliation, match them, then reconcile them again.

Please check this article on how to undo your reconciliation: Undo and remove transactions from reconciliations in QuickBooks Online. Once done, follow these steps:

1. Go to the Banking/Transactions menu and select Banking.
2. Select Paypal and proceed to the Categorized tab.
3. Find the transactions you unreconciled and need to match, then click Undo.

Then, go back to the For review tab and follow the steps on this article on how to match them: Categorize and match online bank transactions in QuickBooks Online.

You can now reconcile your PayPal account again.

I also added these links if you need help in making a deposit and a guide in preparing for the new fiscal year: 

• Year-end guide for QuickBooks Online
• Record and make bank deposits in QuickBooks Online 

Shoot me a reply if you need more help with banking. Thanks!

Hi,

Is there a way to undo an entire year of reconciliation? The link you sent me shows me how to do it transaction by transaction and there are hundreds of transactions. 

Thanks,

Jessica 

Also I still don't understand because the entries are from your integration with Paypal. They are not from me creating entries myself in quickbooks. There are hundreds of these underdeposited funds and honestly they look like duplicates of the ones I reconciled in Paypal. I'm very confused. 

Hello there, jessicayergin.

Allow me to shed some light on how to undo an entire year of reconciiation.

If your firm uses QuickBooks Online Accountant (QBOA), you have a special reconciliation tool. From here you can edit or undo several transactions on a past reconciliation, it’s sometimes best to start over from scratch. You are able to undo their entire reconciliation and get a fresh start.

Learn more about how to undo a client's reconciliation using QuickBooks Online Accountant (QBOA): Undo a client’s reconciliation in QuickBooks Online Accountant.

Feel free to check out our Help Articles to help you with the tasks when using QBO.

Count me in if you have follow-up questions on how to undo reconciliation or other concerns about QuickBooks. Always here to help. Have a great day.