Quotas show incorrectly in WHM after configuring backups for /home

Symptoms

Quotas show incorrectly in WHM for users after configuring backups for /home.

Cause 

If the backups are configured to be stored in /home on the machine, cPanel & WHM disables the quotas on that partition to improve server performance.  This notification is provided in the output of the /scripts/fixquotas command on the system:

# /scripts/fixquotas
journaled quota support: kernel supports, user space tools 
  supports (available)
checking out /home/backup
The system will leave quotas disabled on /home in order to
prevent performance degradation.

You can also review this information in our documentation:

cPanel Documentation: Backup Configuration

Warning: To prevent performance degradation, the system automatically 
disables quotas on non-root filesystems that contain a backup destination.

Resolution

Configure the server not to store backups in /home. 

1. Log in to WHM as root.
2. Navigate to Home / Backup / Backup Configuration.
3. Update the Default Backup Directory to a location outside of /home.
4. Click Save Configuration.

Where can I configure cPanel backups?