It's normal to experience this behavior when handling deposits from Undeposited Funds, CathyDCC. I'd be happy to provide some additional insights to help clarify the process.
When you receive a customer payment and post it to Undeposited Funds, QuickBooks records it as a Payment in the A/R subledger. This reduces the customer's outstanding balance against their invoice.
When you later create a bank deposit using amounts from Undeposited Funds, QuickBooks links the customer payment to the deposit. Once this happens, the system relabels the payment in the A/R subledger as part of a Deposit.
However, if you record a deposit late at night in QuickBooks, it's possible that the deposit was assigned to the following day’s date. This happens because the transaction date in QuickBooks is determined based on the actual calendar date and time at the moment the deposit is recorded.
I'll be sharing this article that will guide you in handling deposits in QuickBooks: Record and make bank deposits in QuickBooks Online.
Don't hesitate to reach out if you have any more questions about making deposits and running your financial reports. I'm here to help.
