Bank Rec:Transactions are in two deposits

Bank Rec:Transactions are in two deposits

Postby Customer Service » January 24th, 2012, 8:37 pm

In Bank Accounts/Reconciliation, I find transactions under the Deposits Tab that are also included in another deposit.

A customer payment that you record in Sales/Invoices is posted to the Cash Receipts control account in the Control Account set that is assigned to that customer. (See Receivables/Configure/ Control Accounts.) If this Cash Receipts control account is also defined as a Bank Account, the system posts the payment to the bank account, where it shows up as a deposit when you run Reconciliation.

Since bank accounts are also available for entering deposits in Bank Accounts/Deposits, this situation could cause an overstatement of Deposits when you record the actual deposit.

To avoid posting customer cash receipts twice, follow the instructions below:

Change the Control Account

In Receivables/Configure/Control Accounts, change the Cash Receipts Account from Bank Account to a Cash Equivalent account that is NOT defined as a bank account. (Create such an account if necessary and call it Cash Clearing.) This allows payments entered into Sales/Invoices to be posted to this cash clearing account instead of to your bank account. This reflects the acceptance of the receipt from the customer and the storing of that receipt in a cash drawer. Customer payments posted to this non-bank-account will not show up when you run Reconciliation.

Deposit Customer Payment

You can deposit customer payments in one of two ways:

When you are ready to make a bank deposit that includes payments recorded in Sales/Invoices, run Bank Accounts/Deposits. Assuming the payment was posted to the cash clearing account as described in above, enter a “Receipt Type” of “Other” and press the Tab key. The “Other receipts” data entry screen is displayed. Enter a name for the deposit. It is not necessary to identify Invoice numbers for this type of receipt. Cash payments have already been recorded against the invoices in Receivables. For the distribution account, enter the cash clearing account you defined as the Cash Receipts control account. Enter the amount of the deposit that represents the cash payment(s). Complete the deposit, save, and post the deposit.

OR

Configure a Cash Receipts Journal that provides the cash clearing account described above as the account to be credited for the deposit of customer payments from the cash drawer. Select this Cash Receipts Journal for the “Receipt Type” when you enter a deposit that includes payments that were recorded in Sales/Invoices and that were posted to the cash clearing account as described above.
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