When accepting payment for an invoice, there is an option to choose an account or undeposited funds. If you are entering a payment that will be deposited to a bank account later, select Undeposited Funds. Undeposited Funds are a chart of accounts with type as Other current Asset. If you are entering a payment that has already been deposited, click Account and select the bank account.
When we choose the undeposited funds, later we have to deposit it to the bank accounts. To deposit the amount, we have to go to ‘make deposit’ in transactions. Navigation is:
Transaction -> Bank -> Make Deposits
In the deposits record, we can choose the account to which the amount has to be deposited. Then in the deposit’s subtab, the payments which all are to be deposited can be checked and then save it. All the selected payments status will be changed to deposited.