How undeposited funds are handled when you start a new financial year
When you close a financial year and start a new one, the status of your undeposited funds transactions depends on the options that you choose during the Start a New Financial Year process. (Closing a financial year and starting a new one)
The best way to ensure that your undeposited funds transactions aren't lost when you start a new financial year is to make certain that all undeposited funds have been deposited through the Prepare Bank Deposit window before you begin your year-end tasks. Your bank deposits should also be reconciled before you begin the new financial year.
If you don't deposit and reconcile all funds before closing a financial year, you can avoid losing information by making sure that you have marked the "Undeposited Funds" line in the Start a New Financial Year windows. This will ensure that any undeposited funds transactions are not purged when you start the new financial year.
You can also preserve any receipts that have been grouped with undeposited funds by marking the "Exclude Receipts Grouped with Undeposited Funds" box in the Start a New Financial Year windows. (To close a financial year)