Create Bank Deposits
[!NOTE] The ability to create bank deposits is new in Business Central 2022 release wave 1 for a lot of country 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: Standardized 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 Center, and other Role Centers 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 checks 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 will update the relevant ledgers. These ledgers include 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. For more information, see Create Number Series.
Also on the Sales & Receivables Setup page, if you want 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, which creates one bank ledger entry for the full amount of the deposit, 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 will be 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'll 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. For more information, see Using Journal Templates and Batches.
Dimensions on Bank Deposit Lines
The lines on the bank deposit will automatically 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 that are specified for the customer or vendor will 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 prioritized over header dimensions. To avoid conflicts, you can create rules that prioritize when to use a dimension depending on the source. If you want to change how dimensions are prioritized, 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 will 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 see 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. [!INCLUDE tooltip-inline-tip_md]
The date in the Posting Date field and the dimensions in the Department Code and Customer group Code fields will be 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.
[!TIP] Before you post the deposit you can use the Test Report action to review your data. The report will show whether there are any issues, such as missing data, that will prevent posting.
Finding 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. There you'll find all of the general ledger entries, including the entries for customers and vendors.
Reversing a Posted Bank Deposit
To reverse a posted deposit, go to 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.
See Also
--- author: edupont04