How do I make Batch Payments from Clients to Match the Bank Statement?

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Many firms run multiple credit card payments or receive multiple checks to deposit into the bank on the same day. Even though these transactions are run separately, they can be batched together into a single Amount to be deposited into a Bank Account. This process makes it hard to reconcile the firm's bank statement to CARET Legal's individual transactions.
 
This article covers:

The Solution

Undeposited Funds Account per Bank Account - A temporary holding account for the money to be deposited into when you record the payment so that it can be batched and transferred to the appropriate Bank Account

Setup

Create a new Bank Account called "Undeposited Funds: [BankAccount/CreditCardProcessorName]". This can be done for each Bank Account that will be receiving multiple checks/charges to be deposited.
 
You can also create a single undeposited funds account and post all invoice payments there that will be distributed later to the correct bank account.
 
This account can even mimic your desk drawer or a folder where you may use to hold onto checks until you are ready to go to the bank.
  1. Click the Accounting icon in the navigation bar to open the Accounting section, then select the Bank & Registers tab.

  2. Select the View Bank & Credit Card Accounts filter under the green action bar.

    ViewBank.png
  3. Click + and select New Bank Account from the drop-down list.



  4. In the New Bank Account modal that appears complete the required fields indicated by a purple bar. Select Undeposited Funds from the Bank Account Type drop-down list.

Process

When payments/retainers are made to CARET Legal, instead of selecting the actual Bank Account that the check/credit card charge will be deposited to, select the Undeposited Funds Bank Account for that Bank Account.



Those deposits accumulate on the register for the Undeposited Funds Account instead of showing as individual deposits in your Operating Account Register.

When you are ready to deposit these payments at the banks:
  1. Select Generate Batch Deposit under the Banks & Registers tab in the Accounting section.



  2. Select Undeposited Funds Account from the drop-down list in the From Account field, and the Operating Account they are being deposited to as the To Account. 
  3. Then select the checkboxes beside the payments that will deposited as part of this batch.

This removes the funds from your Undeposited Funds Account, and shows as a total deposit in the Operating Account.
 
 
 
If you need to undo the Transfer or part of the transfer, simply delete it by clicking on the trash can icon, or edit it to uncheck specific transactions.
 
 
 

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