Customer paid in cash but the owner kept the cash for expenses (petty cash). How do I close the invoice?

Welcome to the Community space, @lucyav087.

Ideally, if a customer pays in cash (immediate payment), you will enter the sales transaction as a sales receipt. Since you've created an invoice, you have to link the payment and then deposit it to the Petty Cash account.

I'll show you how:

1. On the top menu, click the Plus icon.
2. Choose Receive Payment.
   
3. Enter the customer name.
4. Select Cash as the Payment method.
5. Choose the Petty Cash account for the Deposit to field.
6. Select the invoice transaction.
7. Click Save and close.
   

For additional references, you can open the links below:

• Should I use an Invoice or a Sales Receipt?

• How to record a customer payment

Please let me know how it goes or if you have any follow-up questions about invoices. I'll be here if you need further assistance. Wishing you all the best!