It takes some time, tips, tricks, and workflow procedure to learn how to use and clean up Undeposited Funds. It is worth learning best practices, clean-ups, and work-arounds.
I regularly attend and recommend QB training courses from Intuit ProAdvisors, Hector Garcia, and QB Power Hour, and many others. It took me a couple years of training and working out the kinks of my workflows before I finally landed on a basic workflow that works for me. In my case the complications arose when my client’s business invoicing, receiving payments, and recording transactions were outside my full understanding or when I was unfamiliar with their payment POS or gateway. Have patience. Persevere. There is usually a fix and a best practice. Yes, it is not always straight forward. However sometimes the QB file is so totally messed up that you have pick an end point and start a new file. This is often when a client or inexperienced bookkeeper messed up sales tax and/or simply downloaded the bank records directly into bank accounts and expense records from bank or credit card downloads with rhyme or reason and adjusted balances to force a reconciliation. Then sometimes the files are so badly out of balance that it would mean a complete redo. In some cases the client may prefer to bit the bullet and start a new file with best practice procedures.
With each POS or payment gateway it may take time to learn how to properly reconcile those transactions. For these I suggest Veronica Wasek to start or Teresa Slack, Financly for advanced product based ecommerce reconciliation with apps. https://academy.financly.ca/
There are many, many possible reasons that Undeposited Funds can have errors.
They can vary by:
Industry - professional services, retail, restaurants, etc.
Types of invoices - ie sales, retainers, installments, credits, etc
Contracts or Engagements and timing of payment - prepaid, installments, discount on prepaid, cancellation fee, etc.
Refunds and returns.
Payment types and gateways - cash, check, POS, etransfer, exchange, etc.
See below for some tips, tricks, and how to videos.
How to clean up Undeposited Funds in QuickBooks Online
by Veronica Wasek and Andre
Tips for taking on a massive Undeposited funds cleanup in QBO
by Veronica Wasek
How to Clean up Undeposited Funds in QuickBooks Online - My Cloud Bookkeeping
How to Fix Undeposited Funds QuickBooks Online
Hector Garcia is great but fast. This is a public video from his advanced QBO course.
QuickBooks Online: Cleaning up old uncleared transactions from bank or credit card reconciliation.