Undeposited funds may also be called Payments to Deposit. They both mean the same thing. Here I am using QuickBooks Online. We might get paid in cash for the services rendered or products sold. For example think of a small retail store where the customer gives us cash for the item or items purchased. The cash sits in the cash register until we go to the bank to deposit it. However, suppose we don’t get to the bank that day. We will go the following day or perhaps the day after that.

After we accumulate a few deposits, we go to the bank. In QuickBooks we can record our tip to the bank by clicking + New, and click Bank deposit (on the right-hand side under the Other column.

If you take an item, such as a cheque, out of the deposited funds by removing the check mark and then Save it, QuickBooks will automatically more it to Undeposited funds. If we were to click + New, Bank Deposit, we should see it in the provided list.