How to Provide a Customer Receipt Before Payment is Recorded

How to Create an “Undeposited Funds” Account:

1. Go to Accountant > Chart of Accounts.
2. Click the 'New Account' button.
3. For Account Name, enter something like Undeposited Funds.
4. For Account Type, choose:
   - Cash and Bank (if you want it to behave more like a cash-on-hand account).
   - Other Current Assets (if you’re treating it like a temporary receivable).
5. Click 'Save'.

How to Record the Invoice Payment (Before Deposit):

If your customer paid but the money hasn’t hit the bank yet:

1. Open the customer’s invoice.
2. Click 'Record a Payment'.
3. For Payment Account, select Undeposited Funds.
4. Enter the amount and date of payment.
5. Click 'Save' this will mark the invoice as paid.
6. Click 'Send Receipt' if you’d like to email it to your customer.

How to Record the Deposit Using a Journal Entry:

Once the money actually hits your bank account (days later, for example), you’ll move the funds from Undeposited Funds into your bank account.

Here’s how:

1. Go to Accountant > Journal Entries.
2. Click the 'New Entry' button.
3. Enter:
   - Date: When the deposit actually occurred.
   - Description: e.g., “Deposit of undeposited funds.”
4. Add two lines to your journal entry:
   - Debit: Your actual Bank Account  for the full amount deposited
   - Credit: Your Undeposited Funds account for the same amount
5. Click 'Save'.