I am setting up a QB account for a local business. They receive a bulk bank deposit from the government after they send them billing for each of their customers (which is around 40 clients). The bank is connected to QB so the deposit is automatically recognized when we update it. I have a few questions:
1. Where does the bank deposit (income) get recognized? I'm currently throwing it in our income account, for now.
2. We need to be able to break out all the clients services via invoices and then receive payments against those invoices so we have a detailed view of what services and clients make up the majority of our revenue. So when I receive payment against these invoices, are we double booking income along with the bank deposits? Should it be either assigning the bank deposits "or" receiving payments? I know this sounds confusing but not sure which way is the correct way to recognize our income.
Thanks for any help in advance!