How Do I Make a Deposit?

Note: The following feature discussion is not available if you are using QuickBooks or Sage 50 as your accounting package.

We strongly recommend using the Undeposited Funds account to make your deposits from. One of the biggest reasons for this is it allows you to deposit money into any account you choose without setting up a separate Payment Method for each checking account. Another reason is, by using the Undeposited Funds account, the lump sum of the deposit goes to the check register instead of each individual payment recorded.

When a payment is recorded it credits Accounts Receivable and debits Undeposited Funds, as well as appearing in the Make Deposit screen. When the deposit is made, Undeposited Funds is credited, the checking account you chose is debited, and the payment is removed from the Make Deposit screen. The Undeposited Funds General Ledger account number must be set up in the Company → System Setup screen in order for this feature to work.

The only situation where you may want your payments to go directly to your checking account one payment per line item is with credit card payments.  This is only practical if you have a separate account that your credit card deposits go into and you don’t know how they will be grouped on the bank statement until it is received. If you want your credit cards to go directly into a checking account enter that checking account number in the payment method instead of the Undeposited Funds account number.

After payments have been applied go to Receivables → Make Deposit to build your deposit. Choose the bank Account you are depositing the money into and the Date of the deposit. The Deposit field always defaults to today’s date (month and year) + 01, no matter how many deposits you have entered that day.

For example, if I were entering a deposit on 9/1/13 with a deposit date of 9/3/13 the deposit number would default to 090101. You can edit this to be anything you like, but at the very least change the 01 at the end to 02 for the second deposit of the day, etc. If deposits have the same date and same deposit number they will be fine in the register, but in the reconciliation screen they will combine. In other words say you have 2 deposits dated 09/3/13 both deposit number 090301, one for 650.00 and one for 300.00. In the check register they will show as two separate deposits, but when you go to reconcile the account there will only be one deposit for 950.00.

Enter a Memo, if desired, check the Print deposit ticket box, if required.  Now, check the items to be deposited, using the Deselect all or Quick Select buttons, or by selecting each item individually. The Quick Select button allows you to select items by Payment Method (cash, check, etc.) or Payment Date or both. You can also sort items by any column by clicking on the header. After Total Deposit is correct, click Save.

If you get the following error, you have selected more checks than there is room to print on the deposit ticket. Click OK to go back to the Make Deposit screen, uncheck the Print deposit ticket box, then click Save. The deposit will be entered in the Account Register. To print a list of items in that deposit go to Receivables → Reports → Deposit Report and print a report for that deposit.

If you need to add an item to the deposit that is not a customer payment, go to Banking → Account Register and open the deposit. On the first empty line select the appropriate credit account and enter the amount. The payment method, check number and memo are optional. Click OK.

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