Receive Payment settles a customer invoice. Select the customer and apply the amount to the correct open invoices. A partial receipt leaves the remainder outstanding. One receipt can cover several invoices, and an overpayment remains as an unapplied customer credit rather than extra revenue.
Use Undeposited Funds when checks or card receipts will be grouped into a later bank deposit. The bank deposit then transfers those receipts into the bank account, matching the statement's total. Recording the deposit as revenue would count the sale twice. If a customer pays directly into the bank and no grouping is needed, deposit the payment straight to Checking. Always match the actual bank destination.