If you are running a Cash-Based system, and you receive a payment in the amount of $1,355.00, the following occurs when a payment is entered, applied and posted against an Invoice:
|
DEBIT |
CREDIT |
|
| AR Fees |
$1,200.00 |
|
| Uncollected Fees |
$1,200.00 |
|
| AR Expenses |
|
5.00 |
| Uncollected Expenses |
5.00 |
|
| AR Client Advances |
|
150.00 |
| Fee Income |
|
1,200.00 |
| Expense Income |
|
5.00 |
| Cash |
1,355.00 |
|
| TOTAL |
$2,560.00 |
$2,560.00 |
Note that there is only one reference to AR Client Advances. When a payment is applied to fees, it hits Cash, Uncollected Fees, Fee Income and AR Fees. When a payment is applied to expenses, it hits Cash, Uncollected Expenses, Expense Income, and AR Expenses, resulting in what appears to duplicate the deposit amount on the Transaction Register. When a payment is applied against Client Advances, it hits Cash and AR Client Advances.
When this occurs, check to see if your deposit included AR Client Advances.
SN: If you are trying to make sure your deposits are matching in the GL, run the Account History for the Cash-Operating account and the Daily Deposit Report – (month-to-date – no detail). The Total Deposit column on the Daily Deposit Report should match the Total Debits on the GL History.
Or
To check it for the current date (deposits made “today”), prior to posting the transactions in GL, run an Account History for the Cash Operating Account and choose “unapproved/unposted” items only. Compare the total Debits on the GL History to your Daily Deposit Report.