How you describe funds you have received but you are holding to do a future transaction?
submitted by Mary

rebecca

It depends on what the money is being set aside for. If your setting it aside for some potential payment you're not sure about, like a lawsuit or something, you'd call that a provision. For example, provision for bad debt would be money you've set aside to cover payments you don't think your clients will make.

It could also be called a reserve.

rebecca

You could call it an encumbrance. If you set money aside for payroll, that's what you'd call it.