Recording Deposits

Recording Deposits

Offline Transactions - Deposits Connected to an Order


If there is an order in your Membership Toolkit account with a balance due and you receive cash or check as payment, you need to edit the order and record the payment. Until the payment is recorded, the cash or check is entered into your Undeposited Funds account.

Once you record that payment has been received at the order, the appropriate income accounts are also recorded.
 
To make a deposit for funds that have been recorded as part of an order in your Membership Toolkit account:
  1. Go to Accounting / Summary / Select "bank deposit" button.


  1. On the deposit screen, select a deposit account (checking or savings)
  2. enter the date of the deposit.
  3. If there is cash in the deposit, enter the amount of cash being deposited.
  4. Checks that have been recorded into Undeposited Funds will be presented in a list. Select the checks that are included in the deposit.
  5. Hit record deposit.

Notes:  When you enter the deposit, it will be moving money collected and entered into your Undeposited Funds into your checking or savings account.  Your Undeposited Funds account will be decreased and your Checking Account will be increased.


Offline Transactions - Deposits NOT Connected to an Order - Recording Miscellaneous Payments


For deposits of checks or cash that are NOT associated with Membership Toolkit orders there are two ways you can record the deposit.  

Miscellaneous Payments are for miscellaneous receipts of check and cash deposits, NOT connected to an order.

There are two ways you can Record a Miscellaneous Payment:

Option #1 – Recording a Misc. Payment into Undeposited Funds

Receipt of checks or cash from an Offline Transaction is first recorded as a Misc. Payment and entered into your Undeposited Funds to be deposited later into your checking account. Some treasurers choose to do this as soon as they receive a Misc. Payment versus waiting to record the money when the funds are actually deposited into the checking account.

Step 1: Upon Receipt of Misc. Check or Cash - Record the Misc. Payment into Undeposited Funds
  1. Go to Accounting / Summary.
  2. Choose the “Receive Misc Payment” button.
  3. At the selection of “Receive Funds Into”, Select the Undeposited Funds Account.
  4. Complete the information on the form for the check or cash received.
  5. Hit Save.


Step 2: Once funds are actually deposited, Record the Deposit in your Checking Account
  1. Go to Accounting / Summary.
  2. Select "bank deposit” button.
  3. Select the appropriate bank account for “Deposit to Account.”
  4. Enter the date of the deposit.
  5. If there is cash in the deposit, enter the amount of cash being deposited.
  6. Checks that have previously been recorded into Undeposited Funds will be presented in a list. Select the checks that are included in the deposit.
  7. Click "record deposit."




Option #2 – Recording a Misc. Payment directly into Your Checking Account

This allows you to skip the steps of first recording the receipt of these funds into Undeposited Funds.
  1. Go to Accounting / Summary.
  2. Select “Receive Misc Payment” button
  3. Select the Checking Account for “Receive Funds Into.”
  4. Enter the information for your deposit.
  5. Save.


Returned Checks Due to Not Sufficient Funds


Not Sufficient Funds or NSF is the term used to describe a check that has been returned by the bank on which it was drawn because the checking account balance was less than the amount of the check.

This can cause problems in your accounting. One way that you could enter the transaction is:

1. Make a journal entry for the funds that were withdrawn from your account.
  1. Go to Accounting / Accounts and select the "journal entry" button.
  2. Decrease the checking account.
  3. Decrease the appropriate income account that the funds were for.
  4. Increase the expense account for the bank fees.
2. Enter a second journal entry or make a deposit to record the money order.

Recording Deposits for Mobile Card Readers


To record deposits for swiped transactions, we recommend the following steps. These instructions are for deposits that are recorded in your checking account and the transaction fees have already been reflected in the deposit.  (examples, PayPal or Square deposits)

Two Transactions Will Be Recorded
#1 - Record the sale as a deposit of funds into the asset account for the swipe merchant.
#2 - Record the deposit of funds into the checking account and the expense fees.


Mobile Card Readers
If you are using the PayPal, TransFirst, Swipe or PaySimple mobile card readers, you will need to enter these transactions into your financials. These sales are not automatically recorded.
 
PayPal Swiped Transactions 
  1. Record individual orders for contacts (if you choose to do so.)
  2. Go to Accounting /  Summary and select "receive misc payment" button to create a miscellaneous receipt for transactions that are not entered as an individual order. 
  3. Add a deposit to your PayPal account.
  4. Record an expense to your PayPal account for transaction fees. 
TransFirst Swiped Transactions 
  1. Record individual orders for contacts (if you choose to do so.)
  2. Go to Accounting /  Summary and select "receive misc payment" button to create a miscellaneous receipt for transactions that are not entered as an individual order.
  3. Add a deposit to your checking or savings account that you are using for TransFirst deposits.
TransFirst Transaction Fees
You will also need to record the transaction fees associated with the TransFirst swiped transactions. Choose either to estimate and record them now or record them when they are withdrawn from your account.

Record a journal entry adjustment increasing the Credit Card Transaction Fees Expense account and the Transaction Fees Due Liability account.

Stripe Swiped Transactions 
  1. Record individual orders for contacts (if you choose to do so.)
  2. Go to Accounting /  Summary and select "receive misc payment" button to create a miscellaneous receipt for transactions that are not entered as an individual order. 
  3. Add a deposit to your Stripe account.
  4. Record an expense to your Stripe account for transaction fees. 

PaySimple Swiped Transactions 
  1. Record individual orders for contacts (if you choose to do so.)
  2. Go to Accounting /  Summary and select "receive misc payment" button to create a miscellaneous receipt for transactions that are not entered as an individual order.
  3. Add a deposit to your PaySimple Asset account that you are using for PaySimple deposits.
PaySimple Transaction Fees
You will also need to record the transaction fees associated with the PaySimple swiped transactions. Choose either to estimate and record them now or record them when they are withdrawn from your account.
 
Record a journal entry adjustment increasing the Credit Card Transaction Fees Expense account and the Transaction fees Due Liability account.

 
Steps to Record Transactions:

Example: 
  1. $400 collected in swiped transactions at onsite event for spirit wear
  2. $10 in transaction fees
  3. $390 deposited into your checking account
Step 1 - Create an asset account for the PayPal or Square account if needed.
 
Step 2 -  Transaction #1 should be recorded as:
  1. From the Accounting / Summary screen choose "receive misc payment" button.
  2. Change the received funds into - to the PayPal or Square asset account that you created.
  3. Change the receipt type to swipe if you want to record as swiped transaction
  4. Ledger income for Spirit Wear - $400
  5. You are recording that $400 was received into your asset account for the spirit wear sales.
Step 3 - Transaction #2 will record the deposit into your checking and recognize the fees.
  1. From the Accounting / Summary tab, select "journal entry" button.
  2. Decrease the PayPal / Square account by $400
  3. Increase Checking by $390.00
  4. Increase Expense Fees for credit card transactions by $10.00


Recording a Deposit from PayPal to Checking Account


When you transfer money from your PayPal Account into your Checking Account, you will need to record the transaction in your Membership Toolkit Accounting.
  1. Go to Accounting / Accounts.
  2. Select the "journal entry" button.
  3. Transaction Type - Select Decrease.
  4. Originating Account - Select your PayPal Asset Account.
  5. Distribution Accounts & Amounts for Transaction - Select your Checking Account and enter the amount.


Recording a Deposit from Stripe to Checking


When money is transferred from Stripe into your Checking Account, based on the payout schedule you've chosen, you will need to record the transaction in your Membership Toolkit Accounting.
  1. Go to Accounting / Accounts.
  2. Select the "journal entry" button.
  3. Transaction Type - Select Decrease.
  4. Originating Account - Select your Stripe Asset Account.
  5. Distribution Accounts & Amounts for Transaction - Select your Checking Account and enter the amount.


Recording a Deposit from PaySimple to Checking


When money is transferred from PaySimple into your Checking Account, based on the payout schedule you've chosen, you will need to record the transaction in your Membership Toolkit Accounting.
  1. Go to Accounting / Accounts.
  2. Select the "journal entry" button.
  3. Transaction Type - Select Decrease.
  4. Originating Account - Select your PaySimple Asset Account.
  5. Distribution Accounts & Amounts for Transaction - Select your Checking Account and enter the amount.

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