If converting from QuickBooks Desktop an “Undeposited Funds (old)” bank account will be created during the conversion. This will appear in addition to the system Undeposited Funds account.
Your desktop undeposited funds transactions will have been converted into this new undeposited funds bank account.
If the balance in this bank account is nil, it can be made inactive and ignored.
If there is a balance on this account, there will have been a balance in the undeposited funds system account in QuickBooks Desktop. In order to clear this balance, when (post-conversion) any funds relating to converted transactions are deposited in the bank, instead of depositing funds in the usual way (and specifying they are deposited from the system undeposited funds account) a transfer or journal entry should be made in QuickBooks Online. This would be a journal from the “Undeposited Funds (old)” (bank) account to the bank account the funds are being deposited into.
Any new transactions entered in QuickBooks Online can use the system undeposited funds feature and will not be posted to the “Undeposited Funds (old)” bank account created during the conversion. These can be handled in the normal way without any transfer journal being required.