Banking's is the procedure where money received is 'Banked' into an account such as the current Bank account.

When you select Banking you can see each payment for each payment method that has not yet been banked.

By default it does not show the payments that are in the current batch (in the Cash Drawer since the last Close Batch). If you want to also show these you can click on the option (you may want to check if there are any large cheques worth banking early).

You can then tick the payments you are banking. Make sure the total is exactly the amount that is being banked. When it is you can select Save and a Journal is automatically created from the In-Hand accounts to the balance account you are banking the money into. It will also update the Banked Ref on each payment record with the Banking Number.

If you make a mistake after you have created the Banking you can select Accounts / Maintenance, select Cancel Banking and enter the Banking Number.

If you cannot get the amounts to balance what you are banking you will normally have to create an adjustment and re-try.

Also see Accounts / Sales / Payment Methods

Create a Banking

  1. Select Accounts, then Bankings
  2. Confirm the Account you are banking into, the banking date and a banking reference (eg: If banking card payments show Cards)
  3. You would normally select to just show transactions that have been in a completed batch (End of Day), however you could select all if you wanted to see what was currently in the Cash Drawers
  4. In the main section you should see the Payment Methods (In-Hand accounts) such as Cash, Cheques, Cards. You can click on the ‘+’ to the left of the Name to show the individual transactions for that payment method
  5. Select the items you are banking by clicking or pressing [Enter]. The total amount needs to be exact so you will need to correct any mistakes first (see below)
  6. When complete select Save from the left menu

Tip – ‘Close Batch’ (see section above) at end of day helps show up any problems. It the money is out we need to find out why and make the appropriate adjustments. EG: If a Card payment has been entered as Cash we could create a Journal from the Cash-In-Hand to the Cards-In-Hands. If the invoice was for 10.15 and we only took 10.00 we would have to create an adjustment sale (or credit in this case) for the difference (use a specific part number so we can track of all adjustments). Note: Adjustments will normally be in a different batch.

Banking a set Cash Amount

It is common to bank a rounded amount of Cash. For example we make have taken 2,003.60 in Cash Payments, but we only want to bank: 2,000.00. Normally there are not cash transactions that add up to this exactly, so we have several options.

  • We can create a Journal from the In-Hand-Cash to the same In-Hand-Cash account for the difference (for the example above this would be 3.60). This would create 2 records, one for 3.60 and one -3.60 (negative). We can then tick the Cash Payments apart from these two (2,003.60) and then tick the negative journal entry (-3.60) so that the Total will now be 2,000.00. The other journal entry represents the increase in float and can be cleared in the next Cash Banking, or could Banked into the Petty Cash nominal to be used for purchases etc.
  • We can bank all the In-Hand-Cash payments into a balance account such as the Petty Cash account. We can then create a Journal from the Petty Cash account to the Bank account (any difference will be left in Petty Cash).
  • We could automate the In-Hand-Cash payments to go into the Petty Cash account by selecting the 01-08-?? nominal account on the Payment methods table in Settings / System / Sales.

Correcting Mistakes

If an invoice amount is wrong eg: it is for 103.50 but we said to the customer give us 100.00 but we forgot to change the invoice. What we need to do here is create an adjusting invoice/credit note for -3.50 and mark it paid by the same payment method so that the total is now correct (eg 103.50 + (-3.50) = 100.00). When we go to bank it we would normally have to include money in Drawer (because we just did it) and then tick both entries.

Say you paid a sales invoice as Cash when it was actually paid by Credit card, we could then create a Journal from the Cash In-Hand account to the Cards In-Hand account.

Using Close Batch (End of Day) to help reconcile money received

Many businesses find it useful to perform an 'End of Day' routine called Close Batch to balance the money in the Drawer to the money the computer has recorded taken. This can highlight problems that can be corrected prior to Banking