About deposits

Creating a deposit is the next step in the workflow when you receive payments into an undeposited funds account for Accounts Receivable invoices and advances, and other receipts created in Cash Management.

The deposit ensures that your books reflect the transfer of funds from your undeposited funds account to your bank account when you decide to actually move the collected and held payments to your bank.

What's the difference between deposits, automatic deposits, and manual deposits?

The type of deposit you create depends on whether you're recording payments that already have invoices or you're recording a single payment and there’s no invoice.

• When you create a deposit in Cash Management or Accounts Receivable, you've already applied payments to invoices using undeposited funds.

  This type of deposit enables you to record payments from multiple customers into one deposit.

• When you create a manual deposit in Accounts Receivable, you do not have an invoice. You're recording receipt of money against one customer (for example, an over-the-counter cash sale).

  Intacct automatically creates the matching invoice.

Deposits in Sage Intacct are different from automatic deposits and manual deposits.

Table that describes each deposit method.

Method	Description
Deposits	When you receive payment for invoices, AR advances, or CM other receipts into an undeposited funds account, you create a deposit as the next step in the workflow. This type of deposit enables you to record payments from multiple customers into one deposit. When you deposit multiple payments in a single deposit, you see only one entry for the total deposit amount when you receive your bank statement. The Deposit page enables you to record all the individual payments that constitute the deposit.
Automatic deposits	When you receive payment for invoices, AR advances, or CM other receipts directly to a bank account and not into an undeposited funds account, Intacct automatically posts the deposit to the GL and appropriate subledgers. You do not have to take any further action.
Manual deposits	When you receive a payment and do not have an invoice to apply the payment to (for example, an over-the-counter cash sale), you can create a manual deposit. Intacct automatically records the payment and creates the matching invoice at the same time.

Deposits workflow

The following diagram illustrates the deposits workflow and the posting activity in the GL and subledgers. Remember, you add a deposit only after you receive payments into an undeposited funds account.

When you receive a payment into an undeposited funds account, the payment amount posts to the General Ledger. The appropriate account is credited, depending on what the payment is for and how your accounts are set up, and debits the undeposited funds account. An appropriate account is credited, depending on what the payment is for and how your accounts are set up, and debits the undeposited funds account. The payment is added to the list of payments that you can deposit on the Create Deposit Slip page.

Table of the typical account that's credited for different payment types.

Payment type	Typical account that's credited
Invoice	Accounts receivable account
AR advance	Customer prepayment account
CM other receipt	Miscellaneous or other income account

After you create the deposit, the amount of the deposit posts to the General Ledger. The deposit appears on the Deposits list and the Bank Register report. The bank account is debited and the undeposited funds account that previously held the transaction is credited. The payments you included in the deposit from the list of payments on the Create Deposits Slip page are removed. They are no longer available to be included in other deposit slips.

Undeposited funds account

You use an undeposited funds account to hold checks and cash payments that you are collecting for a future deposit. As you collect checks and cash, you can enter these payments even if you do not know when you will make the deposit or to which bank you will make the deposit.

For example, you make your deposits on Fridays. You collect payments throughout the week and record them. The payments are correctly accounted for in the undeposited funds account. However, the deposit is not actually in the bank account until you complete the Create Deposit Slip page. At that point, the funds are transferred from the undeposited funds account to the bank account. Thus, if you received a large check, but were not yet sure where to deposit it, you could record it when you receive it to so that the payment is on the books and preserve your options with regard to which bank to deposit it.

When you select an account for undeposited funds, you cannot select a General Ledger account that's associated with a bank account, even though that might seem natural. Rather, you should specify an account that can be used as a transfer account so that you can deposit them later. (Were you to choose a bank account, the funds would already be posted to that bank, even though you have not yet deposited them. That would defeat the whole purpose of having an undeposited funds feature.) Typically, you create an account such as 1500 Undeposited Funds. However, you can have a more granular structure of multiple undeposited funds accounts.

Setup for deposits

To create a deposit, you must have completed these tasks:

• Created an undeposited funds account into which to receive payments.
• Created a payment summary in Accounts Receivable if you plan to receive payments for AR advances into undeposited funds. Learn more about creating a payment summary.
• Received a payment into undeposited funds that's not yet deposited.

After make deposits, you can view them in a list. To view a list, go to Accounts receivable > All > Payments > Deposits or Cash management > All > Deposits. To find more information about a particular deposit, select View for the deposit.

Foreign currency transactions

If your company uses foreign transaction currencies, only base currency transactions are available for an undeposited funds summary. If you are receiving foreign-currency payments, you must choose a bank account for the summary instead.

Multi-entity companies

In shared multi-entity companies with multiple base currencies, you can use this feature only at the entity level where the transaction is recorded in the entity base currency. The Deposits menu item is not available for top-level companies.

Single payments to multiple customers

If you receive a single payment for multiple customers at the top level, you must deposit the funds at the top level. The payment will not be visible at the entity level, even if all paid line items are coded to a single entity.

Multiple customer payments received at the entity level can be deposited at either the top level or the entity level.