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Undeposited Funds and Deposits

  • 1.  Undeposited Funds and Deposits

    Posted Sep 25, 2019 04:26 PM

    Hello,

    In Quickbooks when we receive customer payments (credit card, check, ACH) they go into an Undeposited Funds account. They remain there until we mark them as being deposited into our bank account.

    Business Central does not appear to have an analogous feature. Instead it posts payments directly to the bank account. For payments that can take several days to post, doesn't this mean the balance of the bank account in BC would be incorrect?

    Any guidance or help would be appreciated!



    ------------------------------
    Thank you,
    Drew Kipfer
    EMP Technical Group
    ------------------------------
    Conference-BCNAVUG_200x200


  • 2.  RE: Undeposited Funds and Deposits

    NAVUG ALL STAR
    Posted Sep 26, 2019 07:14 AM
    @Drew Kipfer,

    It's true there is no direct way to handle what is considered undeposited funds. That being said, with the Bank Reconciliation process, for month end you any funds still not recognized at the bank remain in an open status, giving you your outstanding deposits and checks. Your G\L balance reflects all payments, yes, but reporting allows you to see what value of money has not posted to the bank.

    You can add an additional step in your process, with a bank account that posts to some G\L account defined as undeposited funds, but it is additional ​steps to deposit to then transfer out.

    ------------------------------
    Amanda Mayer
    New View Strategies
    Milwaukee WI
    ------------------------------

    Conference-BCNAVUG_200x200


  • 3.  RE: Undeposited Funds and Deposits

    Posted Sep 26, 2019 10:30 AM
    @Amanda Mayer

    Thank you for the explanation! When you say the value of money not posted to the bank, are you talking about the amount that has not been posted through a reconciliation? What reports are used to show this value in BC?


    ------------------------------
    Drew Kipfer
    EMP Technical Group
    ------------------------------

    Conference-BCNAVUG_200x200


  • 4.  RE: Undeposited Funds and Deposits

    Posted Sep 26, 2019 12:13 PM
    Edited by Jamie Constantine Oct 02, 2019 02:00 PM

    Original Message:
    Sent: Sep 25, 2019 04:26 PM
    From: Drew Kipfer
    Subject: Undeposited Funds and Deposits

    Hello,

    In Quickbooks when we receive customer payments (credit card, check, ACH) they go into an Undeposited Funds account. They remain there until we mark them as being deposited into our bank account.

    Business Central does not appear to have an analogous feature. Instead it posts payments directly to the bank account. For payments that can take several days to post, doesn't this mean the balance of the bank account in BC would be incorrect?

    Any guidance or help would be appreciated!



    ------------------------------
    Thank you,
    Drew Kipfer
    EMP Technical Group
    ------------------------------
    Conference-BCNAVUG_200x200


  • 5.  RE: Undeposited Funds and Deposits

    Posted Sep 26, 2019 12:16 PM
    Edited by Jamie Constantine Oct 02, 2019 02:19 PM

    Use Cash Receipt Journal OR the Deposit page as a replacement to the QuickBooks undeposited funds.   The purpose of Undeposited Funds in QB and the Cash Receipt Journal in NAV is to hold payments until one lump deposit is made to the bank.   In other words, the actual Bank Ledger amount should match the exact amount that is deposited to the bank (and includes multiple checks/payments).   Technically, the Deposit window inacts more of a holding for all payments in one deposit, where as the Cash Receipt Journal can be used for POS systems.  In essence, they are the same as the end result posts one ledger entry to the bank , with multiple subledgers to the the check and customer ledger entries
    Because the Cash Receipt Journal and Deposit page is a journal, you can create records immediately, but leave the journal unposted until you are ready to go to the bank.  Use separate journal batches if you have multiple deposits being worked on ... multiple banks.. etc...

    There is lots of instructional documentation on the Cash Receipts Journal and Deposit page.  let me know if you need help finding them.    



    ------------------------------
    Jamie Constantine
    Columbus Global
    Scranton
    ------------------------------

    Conference-BCNAVUG_200x200


  • 6.  RE: Undeposited Funds and Deposits

    SILVER CONTRIBUTOR
    Posted Sep 26, 2019 12:24 PM
    Hi Drew,

    Some of my clients use a separate GL Account for Undeposited Funds and then move those deposits to the actual bank by journal entry when the time comes to match what the bank has.

    ------------------------------
    Jenifer Elliott
    Senior Application Consultant
    Technology Management Concepts
    807 Parkview Drive North, Suite 150
    El Segundo, CA 90245
    Phone: 831.277.3280
    Email: jelliott@tmc-la.com
    Website: www.abouttmc.com







    ------------------------------

    Conference-BCNAVUG_200x200


  • 7.  RE: Undeposited Funds and Deposits

    Posted Sep 26, 2019 12:36 PM
    Hi Jenifer,

    Do they manually calculate and enter the amount for the funds to transfer, or what does that process look like? My concern is that it seems like it would be error-prone and entry intensive.

    Quickbooks makes this simple by allowing the user to click and select the individual payments that posted and then deposit them to the bank account. No manual entry required other than a few clicks.

    Thank you!

    ------------------------------
    Drew Kipfer
    EMP Technical Group
    ------------------------------

    Conference-BCNAVUG_200x200


  • 8.  RE: Undeposited Funds and Deposits

    SILVER CONTRIBUTOR
    Posted Sep 26, 2019 12:58 PM
    Hi Drew,
    Yes, this would be a manual process and could get quite messy if not watched carefully.  You could create a Deposit or Cash receipt journal and leave it unposted until time to go to the bank but the entries would remain unposted so running reports like the AR aging would not reflect unposted payments.

    The other option is to have your Partner create a modification for you to address this.

    ------------------------------
    Jenifer Elliott
    Senior Application Consultant
    Technology Management Concepts
    807 Parkview Drive North, Suite 150
    El Segundo, CA 90245
    Phone: 831.277.3280
    Email: jelliott@tmc-la.com
    Website: www.abouttmc.com







    ------------------------------

    Conference-BCNAVUG_200x200


  • 9.  RE: Undeposited Funds and Deposits

    Posted Oct 02, 2019 08:33 AM
    @Jenifer Elliott

    Does either the deposit or cash receipt journal allow you to post a lump amount to the bank account ledger? Even when doing a deposit I'm seeing separate entries for the individual checks on the bank reconciliation. When we deposit a batch of checks with our bank, it shows up as one lump sum on the bank statement. How would you match the lump with all the correct individual checks during a bank rec?

    ------------------------------
    Drew Kipfer
    EMP Technical Group
    ------------------------------

    Conference-BCNAVUG_200x200


  • 10.  RE: Undeposited Funds and Deposits

    SILVER CONTRIBUTOR
    Posted Oct 02, 2019 11:35 AM
    Hi Drew,

    The Deposit posts as 1 whole amount.  There can be multiple lines (1 for each check you receive) but Each Deposit card posts as a lump sum in the Bank Rec.

    ------------------------------
    Jenifer Elliott
    Senior Application Consultant
    Technology Management Concepts
    807 Parkview Drive North, Suite 150
    El Segundo, CA 90245
    Phone: 831.277.3280
    Email: jelliott@tmc-la.com
    Website: www.abouttmc.com







    ------------------------------

    Conference-BCNAVUG_200x200


  • 11.  RE: Undeposited Funds and Deposits

    Posted Oct 02, 2019 02:19 PM
    To clarify further, the Deposit functionality will ALWAYS post as one transaction to the bank.  The Cash Receipts functionality can go either way depending on if you use the "Bal Account Type and No." on each journal line.   If you do not use the Bal Account type = Bank account and bank account No, then you create one extra line in the journal for the total of all lines to the bank. This will result in one Bank recon line / Bank Ledger Entry record.  HOWEVER, the Bank Reconciliation process allows you to break out each check based on a setting.

    First :  are you using Deposits or Cash Receipt Journal?   When you complete the Bank Rec, are you doing a bank statement match?   when you see the checks individually, do you see a "+" or "-" next to the top line to consolidate?

    ------------------------------
    Jamie Constantine
    Columbus Global
    ------------------------------

    Conference-BCNAVUG_200x200


  • 12.  RE: Undeposited Funds and Deposits

    Posted Oct 02, 2019 03:58 PM
    I must be doing something incorrectly with deposits or have something configured incorrectly. When I post a deposit in BC, each check shows up as a line in the Bank Reconciliation.

    The only way for it not to show up as separate checks is to use the Cash Receipt Journal, with one balancing line at the bottom.

    ------------------------------
    Drew Kipfer
    EMP Technical Group
    ------------------------------

    Conference-BCNAVUG_200x200


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