Step 1: Receive Payments

1. Go to + New > Receive Payment.
2. Select the Customer and Invoice(s).
3. Enter the payment amount.
4. Deposit to: choose Undeposited Funds.
5. Save the payment.

Repeat for each customer payment you want to include in the same bank deposit.

Step 2: Make a Bank Deposit

1. Go to + New > Bank Deposit.
2. In the “Select Payments to Deposit” section, you will see all payments in Undeposited Funds.
3. Check the boxes next to each payment you want to include.
4. Choose the bank account where the funds were actually deposited.
5. Verify the total matches your bank statement.
6. Save. This creates one bank deposit combining multiple customer payments.

Step 3: Match the Deposit to the Bank Feed

• Go to Banking > Reviewed Transactions.
• QBO should now show a single deposit equal to the combined payments.
• Match it, no duplication occurs.

Example

Enter all three into Undeposited Funds, make one bank deposit for $1,000, and match $1,000 in your bank feed. All invoices will be marked paid correctly.

Common Mistakes to Avoid

• Receiving payments directly to the Checking account, you cannot combine them in one deposit.
• Creating multiple deposits for the same payments, causes duplicates.
• Forgetting to include a payment in the deposit, leaves the invoice partially paid.

Tips

• Use Undeposited Funds as a standard for all customer payments when you expect grouped deposits.
• If using Stripe, PayPal, or Shopify, you may need a clearing account instead of Undeposited Funds, since deposits often come in net of fees.