If I deposited the cash amounts from some clients to my bank account, should I regidter it as a transfer from undeposited fund to my bank account? is that correct?

Hi saraghadiani,

Welcome to Community! QuickBooks Online enables you to record invoice payments accurately, so your accounts remain accurate. I would be glad to assist!

Once you've invoiced a customer, you need to receive the payment so the invoice is marked as paid.  Otherwise, the invoice remains open and will result in inaccurate reporting. You can record full or partial payments toward an invoice by following these steps;

1. Open +New from the left menu and select Receive payment

2. From the Customer ▼ dropdown menu, select the customer

3. Choose the Payment method from the ▼ dropdown menu

4. Enter the Account where the payment has been received, in the Deposit to field.

Note: You can put the money directly into an account, like your chequing account, or select Undeposited Funds if you need to group the payment with others.

5. In the Outstanding transactions section, select the checkbox for the invoice you're recording the payment to

6. When you're ready, hit Save and close.

When you deposit the funds in your bank account,, banks combine all the payments you deposit into a single transaction. Once you have your deposit slip and know which payments your bank combined, you can record the deposit accurately in QuickBooks.  Once you've recorded the payments to the Undeposited Funds account, you can use your deposit slip to combine payments from Undeposited Funds into a single record, so  QuickBooks always matches with your bank records.  To learn how to move the payments from the Undeposited Funds account and combine them into a deposit, click here.

Should you require additional assistance, please contact us outside of Community. It would be our pleasure to work with you in real-time and assist you with accomplishing your QuickBooks goals in a timely fashion.

If you have any other questions, feel free to reach out.  We would be happy to help!