Why are my invoice payments going to undeposited funds instead of my chequing account?

I want to ensure your invoice payments are handled correctly in QuickBooks Online (QBO), BSE1.

There are a couple of reasons why your payments are going to the Undeposited Funds (UF).

If you haven't selected a deposit account from the QuickBooks settings, the payments will automatically be placed into the UF. To verify this, follow the steps below:

1. Log in to your QuickBooks account and click on the Settings gear icon..
2. Choose Account and Settings.
3. Go to the Payments menu, then scroll down to the Chart of Accounts section.
4. Ensure that the correct bank account is selected in the Standard deposits dropdown. It should be your chequing account.
5. For Processing fees, choose the appropriate expense account to track these fees.
   
   
    
6.  Click Save once you've made the necessary adjustments.

Another reason for this is if you use the Batch Deposits feature. If you're using the downloaded transactions feature to connect to your bank, batch deposits will be automatically matched. Payments are initially deposited into the UF account in QuickBooks Online once you process them. Once they settle and are deposited into your checking account, the Batch Deposit will be recorded automatically.

Refer to these articles that can help answer some of your questions about how payment deposits work in QuickBooks: 

• Record payment deposits and fees in QuickBooks Online.  
• Common questions about QuickBooks Payments deposits in QuickBooks Online

If you want to have more direct control of the payments, you can manually deposit them into your chequing account. 

Moreover, it's important to manage your bank feeds and reconcile accounts to ensure accuracy with your real-life bank account.

Still have questions regarding your invoice payments and deposits? Please let us know by leaving your reply below. The Community team is always around to provide further assistance if you need.