Thank you very much for your time on this and for replying so quickly!  I know it will work in the end but unfortunately I do not have a "payments to deposit" account.  I proceeded with your instructions using the undeposited funds account instead, and while the balance on customer 3's account is now 0, it shows a transaction of $500 with type "deposit" with status "open".  Even after I match the bulk payment transaction, the $500 comes up on the list when I try to match other transactions.  I wonder where I went wrong?  I can easily undo all of this and start again.