Hey QBO gang! 

I was having this problem as well, so I went to the COA and found that my customer's Undeposited Funds account was charted as an "Other Current Asset," rather than as an Undeposited Funds account. For whatever reason, it won't let me change the account type of this Undeposited Funds account. So I renamed the incorrectly charted Undeposited Funds account as "Undeposited Funds." (Same name, just with a period punctuation added) and then created the new correct Undeposited Funds account (see my screen shot to see the difference) and then deactivated the incorrectly charted Undeposited Funds account. Make sure when you do this, you don't have any payments sitting in your incorrectly charted Undeposited Funds account! 

Hope that fixes it for some of you have the same problem I did!

Torre Cannavo