Definition
An Undeposited Funds account is a temporary holding account for customer payments you've received but haven't yet deposited into your bank account.
It lets you record payments individually, then combine them when you make one deposit at the bank.
Why It Matters
Undeposited Funds helps your Quicken records match what appears on your bank statement when you deposit several customer payments together.
For example, suppose you receive payments of $500, $300, and $200 from three customers and deposit them together. Your bank records one $1,000 deposit. By recording the individual payments to Undeposited Funds first, you can preserve each customer's payment record while still matching the single $1,000 deposit shown by your bank.
Undeposited Funds is not a real bank account. It's a tracking account used to hold payments temporarily until they're deposited.
How This Works in Quicken
(Quicken Business & Personal only) The Undeposited Funds account is created automatically the first time you select it as the deposit destination when recording a customer payment or sales receipt. You can also create it manually.
Once created, it appears under Business Payments in your business account list and can be selected when recording customer payments and sales receipts. Its balance is also included as an asset on the Balance Sheet.