Customer Payments & undeposited funds
Q: Our company does a lot of cash sales and then we do a banking once a week or so. I enter each sale individually but when I reconcile the bank statement the cash sale amounts don’t show individually on the bank statement, rather it shows the full banking amount for the week. What do you think I am doing wrong?
A: It makes your bank reconciliation much easier if you see one bank deposit on the screen that matches the one bank deposit you physically make each week and see on your bank statement. Follow these steps to make your bank reconciliation easier:
1. Setup, Preferences, Banking tab, mark the option “When I receive money I prefer to group it with other Undeposited funds”
2. Setup, Linked Accounts, Accounts and Banking Accounts, and check that the Bank Account for Undeposited Funds is linked to the “Undeposited Funds” account (not your normal cheque account.)
3. Enter your individual cash sales as usual. (Whether you enter the receipt through Sales, Receive Payment or Banking, Receive Money, you should see at the top of the screen that the option “Group with Undeposited Funds” is marked.)
4. When it’s time to prepare the physical banking, go to Banking, Prepare Bank Deposit and enter the date of the banking. You will see all of the individual cash sales there waiting to be banked. Just mark the ones you wish to bank in the Deposit column on the right hand side, check the total at the bottom matches your banking, and record.
When the bank feed arrives, the deposit must match with your banking entry.
You can then reconcile your bank account normally.
