Some companies use the undeposited cash account as the petty cash account. Occasionally the undeposited cash account is used to pay out cash for incidentals (postage, etc).
These transactions can be recorded on the bank deposit screen using the following method:
- Change the Checking Account ID to the general ledger account for the expense account that needs to be affected for the incidental. For example if paying out for postage select the Postage Expense G/L account.
- Add a manual deposit line using the Cash Account ID as the G/L Acct.
- Choose Save to post the entry.
Using this method will post the value of the expense and adjust the balance of the cash account, sometimes called undeposited cash.
