I am confused on the receive payments thing. I understand when customers pay, to enter a payment into undeposited funds until I go to the bank. When I have a payment from a customer that I invoice, the invoice is there and the payment gets entered for it. Where I'm confused is when I have a check from someone who isn't a customer. Say, a refund from my insurance company. Where do I put that in? Does it just get entered when I do the deposit? The thing I like about undeposited funds is I can see under record deposit how many checks we have that need to go to the bank without having to go dig through the drawer they're in. If I don't put in some checks until it's time to do a deposit, I won't have a QB way of knowing they're there.
The best way to record this check to QuickBooks is to make a deposit. Undeposited Funds is used if you received payments from your customers to your company. If you're not using Accounts Receivable functions such as invoices, you can deposit it directly. To understand more of the functions of the Undeposited Funds, you can check it here.