How do I process bank deposits and address discrepancies in cash receipt journals in Design Manager?
Managing cash receipts efficiently in Design Manager involves understanding when to process deposits and troubleshooting common discrepancies in journal totals. This guide outlines crucial procedures and highlights foundational accounting concepts.
Overview of Cash Receipt Processing
Cash receipt processing involves recording payments received and appropriately categorizing them in the system. Accurate processing ensures proper financial tracking and reporting within Design Manager.
Online Payments: Procedures and Recognition in the System
For online payments processed through platforms like DesignPay or Stripe:
Fund Transfer: When a payment is made online, the system will transfer the funds from the "undeposited funds" account to the cash account once the payout to your bank is successfully recognized.
System Automation: This step is automated and should not require additional manual intervention unless discrepancies arise.
Monitoring DesignPay Balances: Check the DesignPay tab in Design Manager to ensure payments and deposits are marked as 'Succeeded.'
Manual Processing Exception: If the 'Bank Deposit' function does not work for online payments, edit the payment & change the payment type to something other than "Stripe" or "DesPay". Upon saving, the cash receipt will appear deposited in the checking account.
Non-Online Payments: When and How to Process Bank Deposits
For non-online payments like checks or cash that are reflected in a "un-deposited funds account":
Receiving Funds: Verify receipt of the payment (e.g., physical check or cash).
Bank Submission: Deposit the physical funds into your bank account during your next bank run.
System Update: Record the deposit in Design Manager by moving the funds to your bank account from "undeposited funds" on the "Make a Bank Deposit" tab in the cash receipt window.
Using the 'Dep. Slip' Button: Navigate to the 'Bank Deposit' section, select the applicable entry, and click 'Dep. Slip' at the bottom to add the payment to the bank account.4.
Troubleshooting Stuck Funds: If funds remain in the 'Make Bank Deposits' section and do not appear in the checking account, edit the cash receipt in the cash receipt window. Change the payment type to the appropriate code for your system to route the payment into the checkbook and remove it from undeposited funds.
Reconciling Differences in Cash Receipts Journal Totals
Common Causes of Discrepancies
Discrepancies between cash receipts journal totals and account distributions often occur due to:
Accounting Practices: Accrual accounting and double-entry bookkeeping mean that every transaction includes both a debit and a credit that may post to different accounts or time periods.
Timing Differences: For instance, payments may be received in one calendar year but posted in a fiscal period of another, causing mismatches.
Internal Transfers: Moving funds internally, such as between credits, retainers, or proposals, alters distribution totals without reflecting in cash receipts balances.
Resolving the Issues
Audit Periods: Check the financial periods for the dated receipt and posting activity.
Verify Transactions: Ensure internal transfers or adjustments are aligned with your organization’s policies.
Consult Reports: Use system-generated reports to trace discrepancies efficiently.