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Deposits

Deposits record customer payments being deposited into the bank. This process tracks cash and checks from the time they're received until they're deposited.

Understanding the Deposit Process

Typical Flow:

  1. Customer pays - Receive check or cash
  2. Record payment - Enter in payment journal
  3. Hold for deposit - Accumulate payments to deposit together
  4. Create deposit - Group payments for bank deposit
  5. Make physical deposit - Take to bank
  6. Post deposit - Record in Business Central

When to Use Deposits

Use the deposit feature when: - You receive multiple customer payments - Payments accumulate before going to bank - You want to match bank statement to deposit slips - You need to track what was included in each deposit

Alternative: Post payments directly to bank account if depositing immediately.

Creating a Deposit

Step 1: Record Customer Payments

First, record payments in payment journal: 1. Open Payment Journals 2. Enter customer payment lines 3. Important: Set Bal. Account Type to blank or use clearing account 4. Post the journal 5. Payments are recorded but not yet deposited

Step 2: Create the Deposit

  1. Search for Bank Deposits (Alt + Q)
  2. Click + New
  3. Enter header information:
  4. Bank Account No. - Where money is being deposited
  5. Posting Date - Date of deposit
  6. Document Date - Date on deposit slip
  7. Add lines:
  8. Click Suggest Lines to auto-add undeposited payments
  9. Or manually add payment lines
  10. Verify Total Deposit Amount
  11. Click Save

Step 3: Print Deposit Slip

  1. Click Print/Send → Deposit Slip
  2. Print deposit slip
  3. Use this when taking deposit to bank

Step 4: Make Physical Deposit

  • Take checks/cash to bank
  • Give teller the deposit slip
  • Get bank receipt

Step 5: Post the Deposit

  1. Return to Business Central deposit
  2. Click Post
  3. Confirm posting
  4. System:
  5. Increases bank account balance
  6. Marks payments as deposited
  7. Creates audit trail

Deposit Slip

The deposit slip typically shows: - List of checks (customer name, check number, amount) - Cash amount - Total deposit - Bank account information

This should match what you give to the bank.

Viewing Posted Deposits

  1. Search for Posted Bank Deposits
  2. Find your deposit by number or date
  3. View details of what was included

Handling Different Payment Types

Checks

  • Most common for business deposits
  • List each check separately on deposit
  • Note check number on deposit slip

Cash

  • Include cash amount on deposit
  • Use "Cash" line on deposit slip
  • Document source in notes

Credit Card Receipts

  • Usually don't physically deposit
  • Merchant processor handles deposit
  • Record as direct deposit to bank account

Electronic Payments (ACH)

  • Deposit automatically by bank
  • Record when notification received
  • May not need deposit slip

Correcting Deposit Errors

Before Posting

  • Simply delete and recreate deposit
  • Or edit deposit lines

After Posting

  • Cannot modify posted deposit
  • Must reverse transaction if needed
  • Contact accounting for assistance

Best Practices

  • Deposit promptly - Don't hold checks too long
  • Batch deposits logically - Daily or weekly depending on volume
  • Match deposit to bank - Verify bank confirms same amount
  • Keep deposit receipts - File bank receipts with deposit slips
  • Reconcile regularly - Ensure deposits match bank statements
  • Document discrepancies - Note any differences immediately
  • Secure payments - Keep checks safe until deposited
  • Endorse checks - "For Deposit Only" with account number

Bank Reconciliation

After deposits post: 1. Wait for bank statement 2. Match posted deposits to bank statement 3. Reconcile in Business Central 4. Clear deposited items

See bank reconciliation documentation for full process.

Common Scenarios

Scenario: Daily Deposit

  1. Receive customer payments throughout day
  2. Record in payment journal
  3. End of day, create deposit for all
  4. Take to bank next morning
  5. Post deposit when bank confirms

Scenario: Weekly Batch Deposit

  1. Accumulate payments for the week
  2. Friday afternoon, create deposit
  3. Include all week's receipts
  4. Take to bank
  5. Post after bank confirms

Scenario: Split Deposit (Multiple Banks)

  1. Some payments go to Bank A
  2. Others go to Bank B
  3. Create separate deposit for each bank
  4. Post each independently

Scenario: Deposit Doesn't Match Payment

  1. Create deposit for amount going to bank
  2. Investigate discrepancy
  3. Make adjustment entry if needed
  4. Document reason for difference

Troubleshooting

Problem: Can't find payments to include in deposit Solution: Verify payments were posted. Check that they weren't already deposited. Verify bank account filter.

Problem: Deposit total doesn't match expected Solution: Review individual payment lines. Check for missing or duplicate payments. Verify amounts.

Problem: Bank deposit amount differs from Business Central Solution: Investigate which is correct. Look for uncleared checks, bank fees, or errors. Adjust as needed.

Problem: Need to remove payment from deposit before posting Solution: Delete the line from deposit. Payment remains available for future deposit.

Payment to Deposit Workflow Summary

1. Customer Pays
   ↓
2. Record Payment (Payment Journal)
   ↓
3. Payment marked "To be Deposited"
   ↓
4. Create Deposit (Group multiple payments)
   ↓
5. Print Deposit Slip
   ↓
6. Take to Bank (Physical deposit)
   ↓
7. Post Deposit (Updates bank account)
   ↓
8. Reconcile with Bank Statement