Recording AR Checks to a Holding Account
KB Article #:
110132
Summary:
Recording AR Checks to a Holding Account
Description:
Recording AR Checks to a Holding Account to keep track of them sitting on the Checks Drawer in the office and to help in reconciling the bank account GL.
 
Resolution:
 
To set up the Holding account for your undeposited AR checks:
  • Go to General Ledger > General Ledger Account Maintenance.
  • Type in a new GL account to use and click Edit. Click Yes to create a new one.
  • Type in Undeposited Funds for account name, choose Asset for type and click OK to save.
To record AR Checks that go into the 'Checks Drawer' for the time being:
  • Go to Account Receivable > Enter Payments for multiple AR checks received, OR
  • Go to Accounts Receivable > Apply Payments > New button, for recording just one AR check.
  • Fill in the Customer Name, Check Number, and Check Amount.
  • Select the Undeposited Funds account and choose Holding for the account type. Click OK to save.
Don't forget to go to Accounts Receivable > Maintenance Programs > Post to General Ledger to show those AR checks received posted to the Undeposited Funds balance on your Balance Sheet and Trial Balance reports.
They will sit on the Apply Payments window until you have applied them to the AR invoices.
This delays the posting of the AR deposits into the bank account and helps in proper accounting of undeposited checks sitting on the checks drawer in the office.
 
Knowledge Base Reference Number: KBA #110132
 
Details  
 
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