My client recieves payments, then when I try to match the deposit from the bank feed, it is posted as undeposited funds...WHY?

Hi there, Apple.

Let’s review the possible reasons why the payment is listed as being in Undeposited Funds in QuickBooks Online (QBO).

Payments are initially recorded in the Undeposited Funds account, which acts as a holding account until the actual deposit is made to the bank. When you reconcile bank feed deposits, ensure that the total of the payments in Undeposited Funds matches the amount of the bank deposit. If the totals do not match, the deposit will not sync properly and will remain in Undeposited Funds.

To correctly match the deposit from the bank feed, you first need to create the corresponding deposit in QBO.

Here's how to do it:

1. Go to the + Create button and select Bank Deposit. 
2. Select the actual bank account where the money was deposited. 
3. From the list of payments in Undeposited Funds, select the exact payment shown on your bank statement.
4. Ensure the total amount of the selected payments exactly matches the amount of the transaction downloaded from the bank feed. 
5. Click Save and close.

After you’ve saved the Bank Deposit in QBO, return to your Banking tab. The downloaded bank transaction should now show a Match to the Bank Deposit you just created.

For more detailed guidance on creating a bank deposit and matching it with bank feeds, please check out this article: Record and make bank deposits in QuickBooks Online.

If you have any further questions, please don’t hesitate to leave a comment below.