Recording a cash payment from a customer when some of the deposit has been used for cash purchases

Hi ZNP1, thanks for your post - you can create a cash on hand account to track these payments. To do this, first navigate to the Cog > Chart of accounts > New and set the account type to 'cash at bank and in hand' and the detail type as 'cash on hand'. You can enter an opening balance here if there is an existing amount, or leave this field blank. You can the select this account when receiving payment on customer invoices, and when making payment on expenses/bills. Any remaining amount that is deposited to the bank can then be recorded using a transfer (+ new > transfer), selecting the cash on hand account under 'transfer funds from' and the bank account under 'transfer funds to'. This can then be matched to the deposit in your banking screen. :)

Thanks Georgia

That makes sense, I will give it a go :)

I have created a cash account and this works well and transferred the funds to my bank account which connects the payment made into the bank.  However, I have noticed that my quickbooks bank balance is not reducing when I do this - is this correct? Thanks!