This procedure verifies the total of the payments which were processed using the Payment Entry program and updates the general ledger with the amounts being deposited. To process a deposit, you should perform the following steps in the order listed.
1. Confirm that all cash, check and credit card payments have been processed in the Cash Application program.
2. Select the Deposit Management program from the Accounts Receivable Operations Menu.
3. Confirm that the cash clearing account, accounting year, post date, and period being used are correct. The post date and the cash department to be used for each deposit may be changed if necessary using the options available on the Pull Down Menu The accounting year and period used by the program default to the year and period assigned to the operator processing the deposit and if they are incorrect the operator should exit the program, correct the year and period and then re-enter the program. The cash clearing account that is defaulted by the program is determined by a parameter in the system control file that can be set on a group, branch, or user basis. This clearing account is used by both the Payment Entry and the Deposit program. The clearing account can be changed as required. The Deposit program will only show checks which were processed using the cash clearing account that is currently selected in the program.
4. Confirm that the batch totals displayed on the screen agree with the adding machine tape(s) prepared prior to processing the payments. If the batch totals do not match the tape totals, you should determine the reason for the differences and make any required corrections before proceeding. You may display the check detail for each batch from within the Deposit Management program by highlighting the appropriate batch and pressing the EXPAND key. Note: If you have assigned the wrong batch number to an individual check (i.e. all checks except one were deposited in batch #15 and 1 check was deposited in batch number 16), you may correct this problem by changing the batch number on an individual check (Please see the section on Changing a batch number for more information on this procedure). You should note that the batch number and batch totals are only used for reporting.
5. Highlight the batch to be deposited
6. Verify that the correct Cash Account is selected. The Cash Account is increased by the total amount of the deposit (in your house currency). The Deposit Management program will display the default Bank account set up for you by your system administrator. If you need to change the bank account to be used for the current deposit, you may do so by pressing the prompt button that is located to the right of the Deposit Account windows. When the Prompt Button is pressed, the system activates the Account Description Lookup program and it loads the program with all of the valid bank accounts that have been set up in your general ledger. You may select a cash account from this list by highlighting the desired account and by pressing the Select Button.
7. Add any comment or image information for the deposit. The Comment and Imaging Buttons on the Standard Toolbar can be used to add comment (text information) or Images (documents, scanned images, etc) to each Deposit record.
8. Save the transaction. Once the correct deposit total and bank account are displayed by the Deposit Management program you may save the transaction by pressing the Deposit Button. As the transaction is saved the system will print a deposit report which lists the checks being deposited..
9. Confirm that the cash clearing account has a zero balance. Once you have deposited all batches for the day you may view the cash clearing account balance using the General Ledger Account Lookup program. Note: Since the cash clearing account is a clearing account, it should have a zero balance once all checks have been processed and all deposits have been made. If the clearing account does not have a zero balance, then it is likely that:
• One or more batches have not been deposited. If payment transactions are processed and all of the deposits for the payments are not processed, the clearing account will show a debit balance equal to the un-deposited payments.
• The account did not have a zero ending balance on a prior day (this can be checked by looking at activity for the current date (if the current activity nets out to zero), and the account balance does not, it is likely that a prior day or periods payments were not processed correctly.
• Checks may have been processed during the current day which did not post correctly to the general ledger cash clearing and accounts receivable accounts. If all payments have been deposited and the prior days ending clearing account balance was zero then it is possible that one or more of the payments for the current date did not post properly to the clearing account. Generally this type of error will show up during the Daily Closing procedure which is discussed later in this document. This type of error will also normally cause the cash receipts journal to disagree with the batch total(s) shown in the Deposit Management program. If this error occurs you should identify the check which is shown in the Deposit Management program which does not appear on the cash receipts journal and ask your system administrator to correct the un-posted journal entry for the check.