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How to receive a payment in QuickBooks Online

Updated November 5, 2026 · For US bookkeeping

Short answerTo record a customer's payment on an invoice in QuickBooks Online, select + Create, then Receive payment, choose the customer, enter the amount received, select the invoice or invoices it pays, and save. Don't use a sales receipt for an invoice payment: that counts the income twice.

Step by step

  1. Select + Create, then Receive payment. (You can also start from the customer's page.)
  2. Choose the Customer. Their open invoices appear under Outstanding Transactions.
  3. Set the Payment date, the Payment method (for example, Check) and, for a check, the check number as the Reference no.
  4. Choose Deposit to: Undeposited Funds if you'll take it to the bank with other payments, or your bank account if it went straight in.
  5. Enter the Amount received.
  6. Select the checkbox next to each invoice this payment covers, and check the amount in the Payment column.
  7. Select Record and close (called Save and close in some versions).

Undeposited Funds may appear as "Payments to deposit" in some QuickBooks Online companies. It's the same holding account.

Common situations

SituationWhat to do
One check pays several invoicesSelect every invoice it covers. The amounts in the Payment column must add up to the amount received
The customer pays only part of an invoiceEnter the smaller amount. The invoice stays open for the rest
The customer pays more than they oweQuickBooks keeps the extra as a credit you can apply to a later invoice
There's no invoice (they paid on the spot)Don't use Receive payment. Record a sales receipt

What it does to your books

Receiving a payment moves money out of accounts receivable (what customers owe you) into Undeposited Funds or your bank account. Income doesn't change, because it was counted when the invoice was created.

AccountDebitCredit
Undeposited Funds (or Checking)$240
Accounts receivable$240

If you used Undeposited Funds, record a bank deposit when the money reaches the bank. That moves it from Undeposited Funds into Checking, so your books match your bank statement.

Common questions

Why is my invoice still open after the customer paid?

The payment was probably recorded as a sales receipt or a bank deposit instead of with Receive payment, so it was never linked to the invoice. Record it with Receive payment and remove the extra transaction.

What is Undeposited Funds in QuickBooks Online?

A holding account for payments you've received but not yet taken to the bank. Grouping them there lets you record one bank deposit that matches the single deposit on your bank statement.

Related guides

Sources

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