Hello, @rkumar1. 

Thank you for posting back to the Community. I'd be happy to share with you some insight into Undeposited funds and Receive payment. Undeposited funds, it’s a special temporary account that QuickBooks uses to hold funds until you are ready to deposit them.

While Receiving payments in QuickBooks helps maintain accurate accounts receivable balanced. When a payment is entered into QuickBooks, the accounts and financial statements are affected.

It serves as the default Deposit to account when you receive payments, uses a payment item on an invoice, or enter a sales receipt. Once payment received, the transaction will record it at your Bank register. When you reconcile your account this will help you balance everything in your book. 

I'm also adding this article for more detailed information how Undeposited funds works in QuickBooks: How to Use the Undeposited Funds Account to Receive Payments in QuickBooks Online. 

Let me know if there's anything that I can assist you with QuickBooks by clicking a Reply below. I'm always glad to help in any way I can. Have a great rest of the day!