When you receive a payment from your customer, it will only affect the Accounts Receivable (A/R) and your bank account. The deposits will debit your bank account (asset) and credit your undeposited funds (other current assets).
We can pull-up the Profit and Loss Detail report to check the posting accounts for deposits. Also, the deposits will show up under a bank account and the invoices on an A/R account. Here's how:
Are mobile deposit transactions from customers (accounts receivable) supposed to show up in my profit-loss sheets? They are not showing up for me.
Thanks for your response. I'm not sure I still totally understand but might be on the right track. Are you saying that the checks paid to me for services I perform for customers do not get accounted for on the P&L sheet, but that they just go straight to my business checking account?
If I originally opened my business account with $5000, and have $3000 in business expenses, my business account has $2000. If I then receive $4000 in AR from my customers as deposits into my business account, that would make my balance be $6000, which is $1000 more than I started out with. From a business perspective, doesn't that mean that is a profit of $1000?