Receive Invoice Payments in QuickBooks Online Using Undeposited Funds
Learn how to record customer payments in QuickBooks Online, choose undeposited funds as the deposit account, and later move those funds to your bank.
When a customer pays an invoice, QuickBooks Online lets you record that payment and hold the money in undeposited funds until you are ready to deposit it to your bank. This workflow keeps your bank feed clean and matches each deposit to the actual bank transaction. Follow the steps below to receive the payment and move it to your bank.
Prepare the Invoice
Open the Sales menu and select Invoices. Locate the invoice you want to mark as paid and click Receive payment. Verify the customer, date, and amount shown on the payment screen.
Record the Payment with Undeposited Funds
Choose the payment method the customer used, such as check or credit card. In the Deposit to field, select Undeposited Funds instead of a bank account. Enter any reference number or memo, then click Save and close.
Transfer Funds to Bank
When you are ready to make a bank deposit, go to the + New button and choose Bank deposit. Tick the payments held in Undeposited Funds that you want to include, verify the total, and select your bank account as the deposit account. Click Save and close to complete the deposit.
Start by opening the invoice you want to pay and follow the steps above to record the payment and later deposit it to your bank.