How to Apply an Undeposited Customer Cash Payment in QuickBooks
A reader wrote to ask how to handle a cash customer payment that her boss kept. She tried to enter a transaction applied to Owner Draw, but the customer's QuickBooks record didn't reflect the payment.
Receive the payment in QuickBooks and make sure the payment is sent to Undeposited Funds. Then, in the Make Deposits window enter a line below the payment, using the Draw account. Enter a minus amount equal to the amount of the customer's payment. Your bank deposit net is zero, the customer is credited with the payment, and the draw is recorded.