Why when I enter a deposit is it automatically being cancelled out?

Thank you for bringing this to our attention, @signalpinebillin. I’ll help you with your concern about entering deposit into QuickBooks Online (QBO).

The reason could be that the option to automatically apply credits to your QBO account is enabled. When you enter a deposit and a credit, it'll automatically apply within the same transaction. Thus, the deposit will be cancelled out.

To ensure that there’s a transaction link to that deposit, you can check it by going to the register and clicking on the deposit. Then, if the transaction will be automatically cancelled out on your end, you can just disable the option to automatically apply credits from your settings. Let me show you how:

1. Go to the Gear icon.
2. Select Account and settings, then click the Advanced tab.
3. Scroll down and look for Automation. Then, click the pencil icon to edit.
4. Turn off the Automatically apply credits, and click Save and Done.

Furthermore, you can categorize, match, and reconcile your account in QuickBooks Online by checking out the following articles:

• Categorize and match online bank transactions in QuickBooks Online.
• Reconcile an account in QuickBooks Online.

Should you have any concerns with your transactions, you can always leave a comment below. Have a great day!