How to correct a bank deposit error

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bayparktreasurer
Posts: 30
Joined: Sun Jan 23, 2011 5:35 pm

How to correct a bank deposit error

Post by bayparktreasurer »

While doing last month's books I discovered that our bank accidentally deposited one of our weekly deposits into the wrong account and I'm wondering how I go about fixing this.

Our deposits always go into our chequing account but one of our deposits went into one of our savings accounts instead. The contributions module automatically posts the income to our chequing account.

The bank reconciliation for the chequing account shows the deposit which I just leave unchecked which balances the account. The reconciliation for the savings account however does not show any deposit and so is out the amount of the deposit.

I'm trying to wrap my head around this but just can't quite get it straight.

F12Mahon
Posts: 79
Joined: Mon Mar 28, 2011 7:35 pm

Re: How to correct a bank deposit error

Post by F12Mahon »

That has to be frustrating. First question I have to ask is 'Was the wrong deposit slip used?' If not I would contact the bank to have them correct the deposit.

If doing any of the following, do a backup of accounting. Then if things go haywire, you can restore your backup and try again.

If the wrong deposit slip was used you could leave the deposits alone and know you have more in savings, assuming it wouldn't put your church in financial straits.

If the wrong deposit slip was used and the funds must be in chequing I would do a transfer at the bank. My inclination would then be to reverse the deposit in contributions. Then create a new one depositing it in savings. Then do a transfer.
Eugene

NeilZ
Posts: 10209
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
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Re: How to correct a bank deposit error

Post by NeilZ »

bayparktreasurer wrote:While doing last month's books I discovered that our bank accidentally deposited one of our weekly deposits into the wrong account and I'm wondering how I go about fixing this.

Our deposits always go into our chequing account but one of our deposits went into one of our savings accounts instead. The contributions module automatically posts the income to our chequing account.

The bank reconciliation for the chequing account shows the deposit which I just leave unchecked which balances the account. The reconciliation for the savings account however does not show any deposit and so is out the amount of the deposit.

I'm trying to wrap my head around this but just can't quite get it straight.
Just to clarify something .. the system will create the transaction based on how the Contribution Fund is setup. Whatever account is setup as the bank account in the Contribution Fund will show the deposit.

The fix is to reverse the original deposit transaction in Funds Accounting, and recreate that transaction but use the savings account instead of the checking account. The reverse (void) will clear the original transaction on the checking account reconciliation, and the new transaction will allow you to reconcile with the savings account statement.

However, this still leaves the funds showing in the income account used in that transaction. Not knowing if you have the savings account listed under the same Accounting Fund, I can't advise any further. However, if the savings account and checking account are in the same fund (both are in the 01 fund for example), then the only thing you need to do is a simple transfer at the bank, and an transaction in Funds Accounting.
Neil Zampella

Using PC+ since 1999.

bayparktreasurer
Posts: 30
Joined: Sun Jan 23, 2011 5:35 pm

Re: How to correct a bank deposit error

Post by bayparktreasurer »

Thank you.

We only have one deposit slip and all deposits previous and since that one have gone/are going into the proper account so I suspect it was just a bank error.

Ok, so just to make sure that I have this correct:

Currently I have the following:
Debit - Chequing
Credit - Tithes & Offerings

I will reverse that transaction and manually enter the following transaction in Fund Accounting:
Debit - Savings
Credit - Tithes & Offerings

I have already done a transfer of the funds back into the chequing account so all that's left to do is a transfer transaction in Fund Accounting.

Do I have that correct?

NeilZ
Posts: 10209
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
Contact:

Re: How to correct a bank deposit error

Post by NeilZ »

bayparktreasurer wrote:Thank you.

We only have one deposit slip and all deposits previous and since that one have gone/are going into the proper account so I suspect it was just a bank error.

Ok, so just to make sure that I have this correct:

Currently I have the following:
Debit - Chequing
Credit - Tithes & Offerings

I will reverse that transaction and manually enter the following transaction in Fund Accounting:
Debit - Savings
Credit - Tithes & Offerings

I have already done a transfer of the funds back into the chequing account so all that's left to do is a transfer transaction in Fund Accounting.

Do I have that correct?
That is correct, I'm assuming you mean the funds were transferred at the bank, then the last thing is to create a transfer in Fund Accounting. Again, assuming that both accounts are in the same accounting fund (01 for example) then all is needed is a simple debit/credit transaction.
Neil Zampella

Using PC+ since 1999.

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