In the invoicing workflow, what is the purpose of the Record Deposits step?

• A. It records the funds deposited in the bank.
• B. It notifies customers of the deposit.
• C. It posts a service charge.
• D. It cancels the invoice.

Answer: (A)

Recording the actual funds into the bank is the purpose of the Record Deposits step. After you’ve received payments for invoices, you use this step to enter those funds as deposited to the correct bank account, often grouping several payments into one deposit for easier reconciliation. It ties the payments to the invoices they settle and keeps your books aligned with your bank statement, simplifying the reconciliation process. This step doesn’t notify customers, add service charges, or cancel invoices—those actions occur elsewhere in the workflow.