How to apply Bank downloads to accounts receivable. I had a deposit of 700 for 4 clients, I broke it down when putting into my check register & customers still show owe

Welcome to the QuickBooks Community, dssa. 

The outstanding payments from your clients are still reflected in your Accounts Receivable (AR) report since the downloaded transaction has yet to be matched with the unpaid invoices. You're progressing in the right direction, and a minor step back is all that is required to resolve this.

To deposit the sum of seven hundred dollars for four clients, you don't have to split the downloaded deposit transaction. You can match it directly with the open invoices instead. Doing so will also clear the outstanding payments of the four clients when running the AR report. To accomplish this, it is necessary to undo the transaction that was added previously and match it with the open invoices. 

Here's how to undo the categorized transaction:

1. On the Bank transactions page, go to Categorized.
2. Look for the split transaction you've added.
3. From the Action column, select Undo.

Now, you only have to match the downloaded deposit with the open invoices. Here's how:

1. From the For review tab, click on the downloaded deposit.
2. Select Find match.
3. Under the Show dropdown, choose Open invoices
4. Review the details of the invoices, and put a checkmark on the matching invoice payments.
5. Hit Save.

Setting up bank rules also allows for the automatic categorizing of a downloaded transaction. You may refer to this article to learn more about this: Set up bank rules to categorize online banking transactions in QuickBooks Online.

Let me know if you need further help recording and categorizing downloaded transactions in QuickBooks Online. Take care.