What is the Undeposited Funds Account?

[jeffrey]

When we receive payment, chances are that the proceeds will not be immediately deposited into our bank account.

To track such receipts, we receive payments into the Undeposited Funds Account first. When we are ready to deposit the proceeds into our bank account, click on the Deposits Link in either the Customer or Banking menu.

This has three advantages, the first being that we can track proceeds not yet banked in, and the second our account balance is not inflated by amounts not yet deposited.

The third advantage being that if you deposit multiple cheques using one deposit slip, or perhaps even banking in total cash collections, your amount deposited in the bank register will match the amount reflected in the bank statement. The amount in the bank register can be drilled down to the originating receipt so that you can see where it came from.