This section provides an overview of AR Deposit Processing.
The Deposit Management Program is used to verify and to process the batches of customer payments that have been applied to customer invoices in the Cash Application Program.
The deposit process allows you to verify the total amount of each of your deposits for the day and to control the timing of when each deposit shows up in the selected General Ledger Cash Account.
The Deposit Management program allows you to view the batch totals for each open batch of AR checks and it also allows you to view the AR Check Details for each batch. This allows operators to research and identify any mis-applied payments and to correct them prior to processing each deposit transaction.
Once a batch has been verified, and the operator presses the Deposit Button.the deposit process reduces the general ledger cash clearing account that was used during the cash application step, and it updates the general ledger cash account for the total of the deposit. The deposit process also assigns a deposit number to each AR check as it is deposited. This deposit number is used to determine whether a check has been deposited and whether or not it should show up in the Deposit Management program (the program shows only checks that have not been deposited yet).
Once customer payments have been applied to the open invoices for the customers, and the transactions are saved, the accounts receivable operators select the Deposit Management program from the menu.
The Deposit Management program allows the operator to review the payment or batch totals for the current sesssion.
The Deposit Management program lists the totals for each AR payment batch that has not been deposited. Each batch can consist of one or multiple checks but the checks or other payments in each batch must all be in the same currency. The Deposit Management program allows you to view each batch total and to view the details (ar checks that have not been deposited yet) for each batch.
If the operator finds any discrepancies between the amount actually being deposited, and the amount showing applied in the system, the operator can use the deposit management program to research the problem. Once the problem is found, the operator can void an incorrect payment and re-appply it, or add another payment transaction, or change the batch number being used for a specific check to correct the problem.
Once the operator confirms that the correct deposit amount is shown for the current batch, the operator may select the cash account that the deposit will be processed in, and Save the transaction. As the transaction is saved, the system
• Assigns a deposit number to the checks being processed (this causes the checks to no longer be displayed in the program).
• Creates a journal entry that reduces the cash clearing account and increases the cash account being used for the deposit.
• Loads the autopost number of the cash account that the checks were deposited to into the check records being processing.