How do I create a new Undeposited Funds account?

Someone must have renamed the default one.  You cannot delete the default one, so it has to be there.  Look for it in your chart of accts list.

The undeposited funds account is a temporary account for funds in your possession or waiting in the cash register to be deposited. Company owners that wait, say a week to go to the bank, will hold the money in a safe until taken to bank.

So not to lose control and be able to close daily sales, the amount is sent to the current asset “undeposited fund” account. This amount will show in the balance sheet as part of the assets of the company.

So to begin with you properly created the transit account like you mention.

There is one step pending.

Once the money and checks are sent to the bank, there has to be a transfer made from “undeposited funds” to the “bank” account.

So the steps are as follows #1 create the transit account, #2 transfer funds when deposit to bank account is done

So step #1 as follows:

#1 How to create a new Undeposited Funds account

Go gear (top right) / Cart of accounts / new

Or

Left down to Accounting / Chart of accounts / New

Account Type: Current assets

Detail Type: Undeposited Funds

Name: Description of your choice

Save

Step #2 the transfer

#2 Go to Gear (top right) / Transfer

Transfer Funds From: Undeposited funds account

Transfer Funds To: Checking account

Transfer Amount: Amount to transfer

Date: Date of Transfer

Save

The Undeposited Funds account is Created by checking the box under:

Edit - Preferences - Payments -Company Preferences - Use Undeposited Funds as a default deposit it account.

I found this issue while trying to print out Deposit Slips for customer payments.