Receiving payments and making deposits

by Daleen
(North Hollywood)

I need some advice on how to adjust or fix the bank register that has a wrong deposit amount entered through undeposited funds. This is a non-profit academy. Entries made are as followed.

1) An estimate was set up for each students tuition and added fees.

2) An invoice was generated from the estimate at the end of each month. (I guess this was set up for tracking the accurals??)

3)Payments were applied to each students invoice (Using a statement of ACH deposits from a third party). For example, students are set up on a payment plan and funds are collected by this 3rd party collector of tuition via ACH. In turn funds are deposited in to the School Academy Bank Account.

The bookkeeper entered all payments and deposited funds greater than what the bank statement shows. The reason the bank is different from what Quickbook entries reflect is due to ACH returns/NSF’s.

The Bookkeper entered individual ACH checks, (reflecting in the bank register) for each student’s account receivable. The deposit in QB’s is left overstated compared to the bank statement and the ACH checks in QB’s do not appear on the bank statement. How do I show in receivables the ACH returns and change the actual deposit received by the bank in to quickbooks. Is there a journal entry that can be done to clear the bank register discrepancy? And how do I show this with the individual students AR accounts????

Much help needed here. I hope this makes since to you. Any advise would be So Great!

Thank You
Darleen

Reply:

First go to the Make Deposits window and delete the deposit. This will place all of the money back into Undeposited Funds.

Then go to the Receive Payments window and delete any erroneous entries. The only entries that appear here should be actual money that was received. After that go back to Make Deposits and re-record the deposit so that it shows only the correct activity as per the bank statement.

Comments for Receiving payments and making deposits

Sep 01, 2011 Follow up

by: Anonymous

What could one do if the ACH deposits were already reconciled from the check register? Would one be able to do a general journal entry?
I really appreciate your help on this.

Return to QuickBooks Q&A.


Leave a Reply

Your email address will not be published. Required fields are marked *