Allocating cash payment towards undeposited funds

I've come to guide you in managing payments and share details on how bank deposits work in QuickBooks Online (QBO), @Doug Mu.

You'll have to record your deposit to match your bank statements exactly in QBO. When your bank allocates multiple payments as a single deposit, you’ll do the same in QuickBooks. Once they allocate payments separately, enter each one separately.

Once you receive a payment towards Undeposited Funds (£12.95), you're unable to change (decrease) the amount (£11) to allocate the remaining (£1.95) at another time when you process a Bank Deposit transaction.

Based on your concern, it seems that you want to separately deposit the payment you've received. If so, you can record partial payments for an invoice (£11). QuickBooks keeps track of the remaining balance (£1.95), so you can allocate it at another time. Here's how:

1. Go to the + New button.
2. Select Receive payment.
3. From the Customer dropdown, select the name of the customer.
4. From the Payment method dropdown, select the payment method.
5. From the Deposit to dropdown, select the account you put the payment into (Undeposited Funds)
6. In the Amount received field, enter the amount your customer paid.
7. In the Outstanding Transactions section, select the checkbox for the invoice you're recording the payment for.
8. Enter the Reference no. and Memo if needed. This is optional.
9. When you're done, select Save and close.

You can refer to this article for the complete guide: Record invoice payments in QuickBooks Online.

Then, whenever you're ready to deposit the funds at the bank, please see this article for the complete guide: Record and make bank deposits in QuickBooks Online.

Also, I would encourage you to reconcile your accounts every month. This ensures they always match your bank and credit card statements and detect any possible errors accordingly. For the step-by-step guide, you can check out this article: Reconcile an account in QuickBooks Online.

Please keep me posted in the comments if you have other concerns about managing payments and deposit transactions in QBO. I'm always ready to help. Take care, and I wish you continued success, @Doug Mu.