When are Cash Receipts Undeposited funds?
Customer receipts may be deposited to the Bank Account or grouped with Undeposited funds. In the Receive payments window you are offered this choice at the top. Undeposited Funds are designed to be used when huge amounts of cash are received per day and some of this cash is spent before banking the money. If you only bank a couple of customer cheques at a time and don’t deal with much cash, then don’t bother setting up an undeposited funds account. Simply record all customer payments direct into your bank account by clicking Deposit to Account. The idea of an undeposited funds account is that you record all customer payments as going into this account. Later when you deposit cash or cheques into your bank account, you create a bank deposit that transfers the money out of undeposited funds and into your bank account. The balance of the undeposited funds account should then return to zero and the deposit of all the customer payments into the bank account shows up as a single amount in th
