Payments to Deposit in QuickBooks Online

This video shows Payments to Deposit in QuickBooks Online

Timestamps
0:00 Intro
0:28 example
1:43 Receive Payment - Payments to deposit (undeposited funds)
3:26 Bank Deposit
3:58 Match bank deposit in bank feeds

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[jenr]

This seems like a glitch that QBO ought to work out because they know that the funds are actually deposited and into which account and by which customer. I thought that was what the whole point was- so that bookkeeping was done automatically. Mine also says "match" even if I haven't done the deposit. It will match (from banking) to the invoice and mark it as paid, but the funds still show up in the undeposited funds register. In the set-up, I do not have QB payments set to go to undeposited funds, but to be deposited to my checking account. QBO stopped short of making this automated and made it more cumbersome instead. The only benefit I can see is that my custormers can pay with a credit card.

[parvanirose]

What am I supposed to do if my "Payments to deposit" account has transactions in it, but they don't show up when I go into the Bank Deposit screen? I use Square for in-person sales and they transfer in, but apparently most of them never actually made it into my register for cash and my actual bank account. I can't seem to figure it out.

[harmonymarshall]

So if you indeed performed the part that you stated was a huge mistake, what recommendations do you have to undo those and then do it correctly?