While electronic payments are the most secure and convenient way of processing payments, property managers receive checks in the mail or in the office that they want to deposit at one time in a bank account. Typically this is done either online or by going to the bank. The bank deposit will show only online in the bank register. However, that money needs to be applied to each homeowner individually to reduce the amount that they owe.
ManageCasa supports this process with the Bulk Deposit feature.
Central to this process is an internal “Clearing Account” which is used as a placeholder account similar to “ManageCasa Bank”. However, this account will always have a zero balance. It will be used only during the processing of the Bulk Deposit.
When a user creates a new Bulk Deposit, enter the persons who made a payment and much each person has paid.
After successful confirmation the system will do the following:
- Create a new Transaction Type (Internal) of “Bank Deposit”. This new type will not be editable from the transaction list. To properly record the Deposit according to standard accounting practices, each Bank Deposit has a number of accounting records. It will:
- Record the full amount as a deposit into the Bank account.
- In your Chart of Accounts, create an accounting record called “Clearing Account”. This account will hold the amount of money that needs to be applied against all the outstanding money paid by the people in the deposit.
- For each person in the deposit, it will apply the amount they paid to their outstanding balance. It will also deduct that amount from the Clearing Account entry.
- In the end the Clearing Account will be zero and all the people who paid will have that money applied to their balances.
- If the person has Zero outstanding transactions, then a credit will be created for the user.
The payment to the transaction shows as part of a Bulk Deposit and displays the bank account where the money was deposited.
In the Register under Bank Accounts the full deposit will be visible because it’s tied to the “Clearing Account” entry. Because of this, the reconciliation process will reflect what is on the bank statement.
Clearing account:
If there is any AR for a person, it will pay the oldest first.
If a person paid more than what was due, the system creates a credit on their account.
Tip:
- The Cleared Date is a manual entry: the date when a check was cleared by the bank.
- Bulk Deposits can not be edited. If you made a mistake, you need to delete the Bulk Deposit and start again!
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