The handoff between invoice and cash

An invoice records what the customer owes. A payment records what the customer sent. A deposit records what reached the bank. Those events may happen on different days and in different amounts, so collapsing them into one step can make customer balances and bank reconciliation harder to trust.

Record the payment against the right invoice—or leave it unapplied when the customer has not said what it covers. Then group the payments that actually made up the bank deposit. This keeps the customer ledger and the bank statement connected without forcing them to look identical.

Customers often pay part of an invoice, pay several invoices at once, or send a round amount that does not match anything exactly. The books should show that reality. Apply only the amount you can support, keep the remainder visible, and resolve differences rather than hiding them in a miscellaneous account.

Accounts receivable tells you what customers still owe. Undeposited funds tells you what you have recorded as received but have not yet matched to a bank deposit. Reviewing both catches missing applications, duplicated receipts, and deposits posted directly to revenue.