Account called *Undeposited Funds appears in the QuickBooks chart of accounts, or you see two undeposited funds accounts.
In QuickBooks, received payments are processed using either the Enter Sales Receipts or the Receive Payments feature. The first time either of these features is accessed, QuickBooks creates a default account called Undeposited Funds to temporarily hold payments that will be included in group deposits.
If data is imported from QuickBooks to create a file in QuickBooks Point of Sale before a received payment is processed, Point of Sale creates an Undeposited Funds account. This account is used to transfer received payments to QuickBooks during a data exchange, but it is not set up to function as the actual Undeposited Funds account in QuickBooks. The account name is transferred back to QuickBooks during the first data exchange.
When QuickBooks needs an Undeposited Funds account, it creates its own default account with full functionality. Since the name Undeposited Funds is already in use, either because Point of Sale created it, or because it was created manually, QuickBooks creates the account named *Undeposited Funds, adding the asterisk to the name to prevent a duplicate account.
QuickBooks will not allow the accounts to be merged.
Note: The steps for this process may vary slightly depending on your version of QuickBooks.
To resolve this issue in QuickBooks:
Point of Sale will now transfer transactions to the one remaining Undeposited Funds account.