Understand the Deposit Reconciliation Process

An automated deposit reconciliation process is available and is controlled by settings on the System Options table. The deposit reconciliation process allows you to reconcile deposit records with the information returned to you from your bank. The process also allows you to view a list of deposits, sort the information by field name, and drill down to varying levels of detail.

If the deposit reconciliation process is available at your site, when a deposit ticket is printed, or a cash receipt that bypasses the print deposit ticket process is processed, the Deposit Reconciliation table is updated with the deposit ticket number, the deposit ticket date, and the deposit ticket amount. Additional detailed cash receipt information is also updated to the Deposit Detail table. Before the deposit reconciliation process is run, records on the Deposit Reconciliation table have a status of Outstanding.

The automated reconciliation process compares deposit records received from your bank with records on the Deposit Reconciliation table. When the deposit ticket number, the deposit date, and the amount on the Deposit Reconciliation table match the bank record, Advantage Financial changes the status of the deposit ticket on the Deposit Reconciliation table from Outstanding to Confirmed and moves the record to the Confirmed Deposits table. The system moves any unmatched items from the Deposit Reconciliation table to the Deposit Exception table from where you can research and correct such records according to your internal procedures.

From the Confirmed Deposits table, you can select the reference data for a particular record to view the transaction details for the selected record from the Deposit Detail table. There are also links available from this table to view the associated Cash Receipt (CR) transaction itself.

All deposit records that cannot be matched in the automated deposit reconciliation process will be viewable on the Deposit Exception table. Each record on this table includes information about the deposit, a corresponding exception code indicating why this record failed during the reconciliation process, and a Delete check box. After you have adequately researched and resolved the situation that caused the record to be written to the Deposit Exception table, you can indicate that the record should be deleted by selecting the Delete check box.

Deposit reconciliation for money that has been deposited electronically works much the same way as the automated deposit reconciliation process. However, there are some differences.

When your entity receives money by way of electronic payment (electronic funds transfer – EFT), the money has been deposited at the bank without a corresponding Cash Receipt (CR) transaction in Advantage Financial. Because there is no Cash Receipt and no deposit slip printing transactions, there is no corresponding record on the Deposit Reconciliation table.

When the automated deposit reconciliation process compares the bank’s data to the Deposit Reconciliation table, it will find no corresponding deposit numbers on the Deposit Reconciliation table for deposits that were received by the bank electronically. All of the records that were received as electronic deposits will, therefore, be written to the Deposit Exception table.

You must then complete a Cash Receipt transaction to account for funds that were deposited electronically. Once the Cash Receipt is accepted, it will update the Deposit Reconciliation table with deposit date, deposit number, and deposit amount. During the next automated reconciliation process, these records will have their status changed to Confirmed and the records will be deleted from the Deposit Exception table and moved to the Confirmed Deposits table.

If necessary, you can use the Deposit Reconciliation table to perform manual deposit reconciliation. You can change only the Status and Comments fields on this table. Records cannot be added or deleted. If you do change the Status field from Outstanding to Confirmed on this table, the system will update the Last Action Date field. However, note that changing the status will not initiate any other action, including the posting of accounting entries. If you need accounting entries to be posted, you must process the appropriate accounting transaction(s) to record them. The system will move any records on this table which have had their status changed to Confirmed to the Confirmed Deposits table during the next automated deposit reconciliation process.