NESFA Treasury Procedures: Entering Check Deposits

NESFA always xeroxes the front of all checks received, and attaches the copies to a copy of the deposit slip. This packet is the basic paperwork for a deposit.

Regular checks

To record the deposit, take the packet of xeroxed checks and, using the "Tasks/Enter Receipts..." dialog, create a new deposit. The deposit Ticket ID must be unique to this deposit: Use the form YYMMDDL, where YY is the year (e.g., '03'), MM is the month (e.g., '06'), DD is the day (e.g., '21') and L is a letter which designates which check deposit for the day we're dealing with. We start lettering checks with "B" ("A" is reserved for charge deposits.) So the 1st check deposit on Christmas Day 2003 would be given the ID 031225B and if we did two on that day, the second would be 030225C. (Having a unique ticket ID and using it for all checks on a single deposit makes reconciliation substantially easier.)

Then enter all of the cash purchases (non-Accounts Receivable) checks on that page. Mark them off on the xeroxes of the checks as they're entered into the books.

Accounts Receivable checks

For each accounts receivable check, a separate deposit dialog is needed. For each check, select "Tasks/Enter Receipts..." dialog, and create a new deposit. The date and deposit ticket ID will stay filled-in (it's very important that all checks in a given deposit have the same deposit ticket ID in Peachtree), but you'll have to fill in the reference number anew.

One or more A/R numbers will normally be listed on the check, so first enter the name of the customer in the Customer ID field. This will bring up a list of open receivables for that customer. Check off the receivables paid by that check. If all's well, the total for this item will match the total on the check. If so, you're done. If not, you're toast.

If the total doesn't match, there are typically two reasons:

The customer has claimed credits due to returns, mis-shipments, or damage
The customer has paid a wrong amount for one or more receivables.

Final check

Once the entire deposit is entered, run the report "Reports/Account Reconciliation/Bank Deposit Report" and confirm that the total for the deposit entered into Peachtree matches the total on the paper deposit slip. Doing this now rather than when the account is reconciled saves a lot of time. The deposits are batched together based on the deposit ticket ID, so an error in entering the same deposit ticket ID on all parts of a deposit will cause this report to be off.