Create bank deposits
Note
The ability to create bank deposits is new in Business Central 2022 release wave 1 for a lot of country/region versions. If you were using Business Central in the United States, Canada, or Mexico before that release, you might be using the earlier capabilities. You can continue, but the new capabilities will replace the old ones in a future release. To start using the new features described in this article, your administrator can go to the Feature Management page and turn on Feature Update: Standardised bank reconciliation and deposits.
Use the Bank Deposits page to register deposits as a single document that posts one or more entries to a bank account. Typically, bank deposits are used to register cash deposits. The Bank Deposits page is available on the Cash Management menu on the Business Manager Role Centre, and other Role Centres that deal with cash management.
Amounts on bank deposits can come from several sources:
- Sales, using a G/L account for revenue.
- Customers payments.
- Cash refunds from vendors, or cash payments to them.
Bank deposit lines contain information about individual deposits, such as cheques from customers. The total of the amounts on the lines must add up to the total amount of the deposit.
After you fill in the deposit information and lines, you must post it. Posting updates the relevant ledgers, including the general ledger, and the bank, customer, and vendor ledgers. Posted deposits are stored for future reference on the Posted Bank Deposits page.
The Bank Deposit report displays customer and vendor deposits with the original deposit amount, the amount of the deposit that remains open, and the amount applied. The report also shows the total posted deposit amount to reconcile.
Before you start
There are a few things to set up before you can use bank deposits. You must have a number series and general journal template ready. You should also specify whether to post bank deposit amounts as a lump sum. That is, as a total of all the amounts on the deposit lines. Otherwise, each line is posted as an individual entry. Posting a deposit as a single bank ledger entry can make it easier to do bank reconciliation.
Number series and lump sum deposits
You must set up a number series for bank deposits, and then specify the series in the Bank Deposit Nos. field on the Sales & Receivables Setup page. To learn more about number series, go to Create Number Series.
Also on the Sales & Receivables Setup page, to post deposits as lump sums rather than individual lines, turn on the Post Bank Deposits as Lump Sum toggle. Posting a deposit as a lump sum creates one bank ledger entry for the full amount of the deposit, which can make it easier to do bank reconciliation.
General journal templates for bank deposits
You must also create a general journal template for deposits. You use general journals to post entries to bank, customer, vendor, fixed asset, and general ledger accounts. The journal templates design the general journal to suit the purpose of your work. That is, the fields on the journal template are exactly the ones you need.
The deposits are cash receipts, so you might want to reuse your number series for cash receipt journals. Alternatively, if you need to distinguish between bank deposit and cash receipt journal entries, use a different number series.
You also need to create a batch job for the template. To create a batch job, on the General Journal Templates page, choose the Batches action. To learn more about batches, go to Using Journal Templates and Batches.
Dimensions on bank deposit lines
The lines on the bank deposit use the default dimensions you specified in the Department Code and Customer group Code fields. When you choose Customer or Vendor in the Account Type field, the dimensions for the customer or vendor replace the defaults. You can change the dimensions on the lines, if needed.
Tip
Dimension on lines are set according to Default Dimension Priorities. Line dimensions prioritised over header dimensions. To avoid conflicts, you can create rules that prioritise when to use a dimension depending on the source. If you want to change how dimensions are prioritised, you can change their rankings on the Default Dimension Priorities page. For more information, see To set up default dimension priorities.
Create a bank deposit
Choose the
icon, enter Bank Deposits, and then choose the related link.Choose New to open the Bank Deposit page.
Choose the general journal template that you created for bank deposits.
Note
If the general journal template has more than one batch, you'll be prompted to choose one.
In the Bank Account No. field, choose the bank account in which to make the deposit.
Tip
You can double-check that you're depositing to the correct account by using the Account Card and Account Ledger Entries actions to look up the ledger entries for the selected bank account. For example, to check whether similar deposits were made to the account.
In the Total Deposit Amount field, enter the total amount of the deposit. This total must be the sum of the amounts on all lines.
Fill in the remaining fields as necessary. Choose a field to read a short description of the field or link to more information.
The date in the Posting Date field and the dimensions in the Department Code and Customergroup Code fields are assigned to the lines that you create for the bank deposit. You can change them if needed.
Depending on whether you want to post the bank deposit as lump sum or each line individually to the bank ledger, turn the Post as Lump Sum toggle on or off. The default setting comes from the same toggle on the Sales & Receivables Setup page.
Note
The Currency Code field shows the currency that is specified for the bank account you chose. You cannot choose a different currency.
On the Lines FastTab, create a new line for each cash payment that you want to deposit.
In the Account Type field, specify where the payment originated. For bank deposits, the type is typically Customer or Vendor.
Note
You can also register a cash payment to a vendor. To do that, choose Vendor and then enter the payment amount as a negative number in the Credit Amount field on the line.
In the Document No. field, enter the document number of the invoice from which the credit amount originated. You can use a document number for each line, or the same number for all lines.
Tip
Typically, you don't need to fill in the Document Type field for financial entries. For example, if you're depositing cash from a day's sale you leave the field blank. If you're depositing cash from a customer payment, you choose Payment.
If you're depositing a cash payment for a specific customer invoice, choose the Apply Entries action, and then enter the invoice number in the Applies-to ID field.
If you're ready to post the bank deposit, choose the Post action.
Note
If the bank account has default dimensions where the Value Posting field contains Code Mandatory, Same Code, or No Code, you must post the deposit as a lump sum. If you don't post as a lump sum, posting might fail because the dimension values of the accounts on the bank deposit lines violate the value posting rules of the bank account.
Tip
Before you post the deposit, you can use the Test Report action to review your data. The report shows whether there are any issues, such as missing data, that might prevent posting.
Apply multiple cheques for multiple invoices for a customer in a lump sum deposit
You can post lump sum deposits from multiple cheques on deposit lines for customer ledger entries.
Choose the
icon, enter Bank Deposits, and then choose the related link.Create or choose a line for the customer, and in the External Document No. field, enter the cheque number.
Choose Apply Entries.
On the Apply Customer Entries page, for each document you want to apply the cheque to, in the Applies-to ID field, enter the cheque number.
In the Amount to apply field, enter the amount on the cheque.
Note
When you enter the amount to apply, the Applies-to ID field might reset to the bank deposit document number. Double-check the field, and if it reset, reenter the cheque number.
Choose OK.
Repeat steps two through six for each check.
Tip
Before you post the bank deposit, it's a good idea to use the Test Report action to validate the applications.
Find posted bank deposits
The Posted Bank Deposits page lists your company's previous deposits. In the list, you can review the comments and dimensions that were specified for the deposits. You can open the bank deposit to view more details, and from there you can investigate further. For example, you can choose the Find entries action to view the posted bank ledger entries. From the bank ledger entry, you can find its corresponding posted general ledger entry.
If you want to look up all general ledger entries for the posted deposit lines, go to the G/L Register page and use the General Ledger action. The action shows all of the general ledger entries, including the entries for customers and vendors.
Reverse a posted bank deposit
There are a couple of ways to reverse a posted bank deposit:
- On the Posted Bank Deposits page, choose the deposit, and then choose the Undo Posting action.
- On the G/L Registers page, find the register for the deposit, and then choose the Reverse Register action.
Note
You can only reverse a register that contains a single type of entry. That is, the register must contain only customer entries or vendor entries, but not both. If a register contains both you must manually reverse the deposit.