Deposit Processing

The second step in the Cash Application process is to Deposit the customer payments. 

This step reduces the general ledger clearing account that was used during the cash application step, and it updates the general ledger cash account for the total of the deposit.

Once customer payments have been applied to the open invoices and the transactions are saved, 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.