My project lead used a cash payment to purchase materials for a job. How to I document the full payment by the customer with the partial deposit?

Let me help you in recording the payment, a-r-case22.

If you recorded an invoice, you can also record a payment and let's deposit it first into your Undeposited Funds. That way, we can deduct the expense for materials purchased by your project lead when you deposit it to the right account. Please refer to this article on how to record invoice payments in QuickBooks Online.

When doing a bank deposit, let's add a negative amount for the purchased materials and make sure to post it to an expense account. You can follow these steps:

1. From the +New button, click on Bank Deposit.
2. Locate the payment and check it.
3. From the Add funds to this deposit section, select an expense account on the Account column.
4. Enter the amount as a negative (ex. -100). Then, click Save and close.

You can also read this guide if you need to enter billable expenses.

Comment again if you have more questions. Have a wonderful day!