16 Nov Make Deposit Enhancement
Receive Payment/Deposit Corrections
Q – I have created a mess that I am hoping you can help me straighten out. I entered several receive payments and the chose the make deposit option. A couple of months later I realized that I have two customers with similar names and the payment had been applied to the wrong customer. When I go to the receive payment and try to change the customer it says I need to delete the deposit. I am afraid to do that since I have already completed my bank reconciliation and I do not want to make the situation even worse. Can you point me in the right direction to get this cleaned up?
A – There are two alternatives. The most efficient answer is to create two journal entries through a “clearing” account. The first entry would be a debit to Accounts Receivable with the incorrect customer in the name column and a credit to the clearing account. The second entry would be a credit to Accounts Receivable with the correct customer in the name column and a debit to the clearing account. Confirm the clearing account balance is zero and look at the customer balances to confirm the journal entries moved the balance as appropriate.
The second alternative is to correct the original entry. To correct the original transaction is not an easy solution, but by using an organized approach, you can accomplish the correction while leaving your previous bank reconciliation intact.
1. Find the appropriate deposit and print it for future reference.
2. Choose Edit from the menu bar and then transaction history (Ctrl > H) and go to the appropriate receive payment.
3. Leave the receive payment screen open and go back to the deposit. Click on the line with the incorrect customer.
4. Choose Edit from the menu bar then delete line.
5. Click on next then previous (to record the deposit without the line then go back to it).
6. Go back to the receive payment, make the appropriate correction, and then save the changes.
7. Go back to the deposit and click on the payments button at the top of the deposit form to “pull” the corrected transaction onto the deposit slip.
8. Confirm the deposit total agrees with the report printed in step 1 then save the transaction.
This process, although many steps which can get confusing, does not delete the deposit in total so the bank reconciliation will not be changed when the correction is done.