What is the correct category for undeposited funds please?

I've got you covered, colescs.

I'd be happy to provide the clarification that you're looking for.

In QuickBooks, the correct category or Account Type for Undeposited Funds is Current Assets. For additional insight about this, I'm also including this article: How to record payments as undeposited funds

I hope this response finds you with a smile today. Keep in touch if there's anything else I can clarify for you. I've got your back and am always happy to help.