Does anyone know why an invoice would be marked as "paid" and "deposited" if it in fact wasn't? The client contacted me saying it was paid and she hasn't paid it.

I can help you get to the bottom of your invoicing concern without any delay, kellyhite@ganset.

Your clients can overpay you which results in a credit to their account. In QuickBooks Online (QBO), you're able to set up credits to apply to future payments by default. With this, your client may have an available credit that was applied to their invoice that's why it's marked as paid and deposited.

In case credit is accidentally or wrongly applied to your client's invoice, you'll have the option to remove it. Here's how:

1. Go to the Sales menu.
2. Select the Customers tab.
3. Click the customer's name and proceed to the Transaction List tab.
4. Locate and select the invoice to open its details.
5. Click the link (i.e., 1 payment made (amount)) under the Payment Status section. Then, select the date. 
6. On the Receive Payment page, scroll down to the Credits section. Then, unlink the credit by unchecking the Unapplied Payment.
7. Select Save and close. 

Then, when you have a QuickBooks Payments account, you can also check if your client already paid their invoice(s). Sign in to the Merchant Service Center to do this process.

Also, QuickBooks offers the Invoice and Received Payments report. I'd recommend pulling it up to effectively monitor all the payments you've received and the invoices that go along with them. Go to the Who owes you section from the Reports menu's Standard tab.

Please let me know if you have any other concerns about managing invoices in QBO. I'll get back to you as soon as possible. Have a great day, and take care.