The purpose of this document is to show how using the undeposited funds concept can help speed up the bank reconciliation process in Acumatica.  As the name implies, undeposited funds are funds collected from customers but have not yet been deposited into the organization’s checking account. Acumatica uses clearing account for undeposited funds.

In real-world situations, businesses do not run to the bank to deposit a customer’s payment immediately after it is received. Businesses instead, batch customer payments for the day and deposit them at the bank physically or through scanning devices. The monthly bank statement from the bank will then show one lump sum deposit though the deposit consisted of several checks. Acumatica uses clearing account as a holding place for the undeposited funds and as when deposits are finalized, utilizes Bank deposits to move the funds from the clearing account to the designated checking account.

Acumatica Bank Deposit steps:

Acumatica uses Bank Deposits process flow to move customer payments to the designated checking accounts through the following setups:

1. Create an undeposited funds account

In the chart of account screen, create an undeposited funds account.

Create Undeposited Funds Account

2. Configure the undeposited account as a clearing account

In the Cash Account, configure the undeposited funds as a clearing account. This is a temporary holding place to hold the deposit until it is finally deposited in the bank.

Configure Undeposited Account Clearing Account

3. Assign undeposited funds account as a clearing account for the checking account

In the Cash Account screen, select the desired checking account. Under the clearing accounts tab select the undeposited funds account.

Cash Account Screen

4. Make undeposited funds default for all customers

In the cash payment method configuration, select check payment method and check AR default for the undeposited funds account. When you assign the check payment method to a customer, all payments from the customer will go to the undeposited account. Acumatica Bank Deposits is then used to transfer funds from undeposited funds account to the checking account based on how they were deposited at the bank.

Payment Methods

By using undeposited funds and Acumatica Bank Deposits to transfer funds out of undeposited funds to the checking account, Acumatica bank reconciliation deposits will match bank statement deposits. This will substantially reduce the time it will take to perform bank reconciliation in Acumatica. If undeposited funds are not used, users will have to add up several  bank reconciliation deposits amounts to determine what Acumatica deposited amount is shown in the bank statement.

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