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Understanding the New Bank Deposit Report

The bank deposit report is used to track the state of income coming into and exiting the business in the form of new payments, credits, refunds and deleted transactions. The new bank deposit report is very similar to the one available with the old ledger, with the addition of the deleted payment tracking. 

While deleted payments are included, they are separated out at the bottom of the report to give you an accurate total for operational bank deposits. The bottom of the report allows you to account for deleted payments and to see how those deletions may effect program and charge category totals. More about accounting for deleted payments.

Showing How Payments are Applied:

Just like the old ledger system, to easily reference how/where a payment from a family has been applied, you would use the filter "Show Programs" when running the Bank Deposit report. This provides you not only with the payment details, but a list of Programs and Charge Categories it has been applied to.

Take into consideration the following entries, recorded for each of the families in the following reports, to help you understand how these payments are being tracked on the Bank Deposit report over time.

FAMILY NAME   

 DESCRIPTION OF EVENTS

Scenario 1:  On 10/16/2015, a payment is recorded and applied to a charge immediately from the New Payment window.
Scenario 2:  On 10/16/2015, a payment is recorded and left un-applied, then applied to a charge later in the same day.
Scenario 3:

 On 10/16/2015, a payment is recorded and accidentally applied to the wrong charge.

 Then it is immediately un-applied and re-applied it to the correct charge on the family ledger.

Scenario 4:  A payment is recorded on 10/16/2015, then not applied to a charge until three days later (10/19/2015).
Scenario 5: 

 A payment is recorded and applied on 10/16/2015 to an incorrect charge.

 Then it is un-applied and re-applied to a new charge three days later (10/19/2015).

 

BANK DEPOSIT - End of day 10/16/2015.

One payment has been received by each of the families in this report. $1 from the Scenario 1 family, $2 from the Scenario 2 family, etc.

However, for the Scenario 3 family, a $3 payment has been received, then applied to an October Swim Charge in the Swim program, then un-applied from that charge and re-applied to a Supply Fee in the Pro Shop program. Because the positive and negative entries for the Swim program October Swim charge zero each other out, the $3 is only included once in the totals for the report.

5Scenarios_BD_10-16-2015.png

NOTES: When "Show Programs" is selected, in the event that a payment has only been partially applied, it will be reported twice- once for the applied amount and once for the un-applied amount. The same type of entry system occurs if the payment is applied to multiple charges, each with its own Program and Charge Category.

BANK DEPOSIT - End of day 10/19/2015.

Because no new payments were recorded on 10/19/2015 in this example, the Bank Deposit report for just that date would be blank. The changes described in Scenario 4 and Scenario 5 would be reflected in the Program Deposit Split report for the 19th under the Adjustments Made to Payments Received Prior to 10/19/2015 section.

BANK DEPOSIT  – Date range of 10/16/2015 through 10/19/2015.

When run for the date range, the Bank Deposit report with the "Show Programs" filter ran from the time the payment was taken to the 19th when the final adjustments were made will match the information found for the same date range on the Program Deposit Split report. If an amount is applied, then un-applied, as you see with the Clothing category below, you will see a positive and negative amount for each historical point of how the payment was applied. These would cancel each other out so that the amounts do not effect the total income reported for the date range.

If you were to run this report without the "Show Programs" filter, it would give you a strict count of transactions that took place, wherein the $5 payment received from the family in Scenario 5 and the $3 payment received form the family in Scenario 3 would each only be recorded once upon receipt.

 5Scenarios_BD_10-16_to_10-19.png

Click here to view how the 5 Family Scenario would be reflected on the Program Deposit Split report.

Deleted Payments:

It is important for accountants or book keepers to be notified of deleted payments in iClassPro in the case that they have already entered the payment as income in a separate accounting software.

Because different businesses reconcile at different frequencies with their accounting software, iClassPro's day by day approach of showing payment activity must extend to deleted payments in real time. In other words, a payment recorded on Monday and deleted on Wednesday must show up as 1) a positive entry, or income, on Monday's reports and 2) a negative entry on Wednesday's reports. 

NOTE: To make reconciling these events easier, we have added information about date of the entered payment the Bank Deposit report on the date the amount is deleted. We have also enabled a similar note in the system to be added to the payment on the payment date, referring back to the date of the deletion.

Example

BANK DEPOSIT March 13, 2016 (Before Deletion)

Below is an example of a Bank Deposit report where a $39.99 cash payment is recorded as income on 03/13/2016. 

Payment_Before_Getting_Deleted_BD.png

 

BANK DEPOSIT March 13, 2016 (After Deletion)

The next day (03/14/2016), a staff member realizes that this payment was entered incorrectly and he/she deletes it. When run again, the report for the day before will move the payment to the deleted section to indicate that the payment is deleted in the future (the date of the deletion is marked as a note in the Transaction/Check# field for quick reference). However, it will remain a positive balance on the report because the deletion of the income did not occur until the following day. 

Payment_After_Getting_Deleted_BD.png

 

 BANK DEPOSIT March 14, 2016 (After Deletion)

If you run a Bank Deposit report for 03/14/2016, a negative entry for the same amount is included in the deleted payments section, as seen below. That is because the income was not deleted until 03/14/2016 and it is possible that the accountant/bookkeeper has already recorded it as income from the previous day. This negative entry would allow the accountant/bookkeeper to make the necessary adjustment if that had occurred.

Note: The negative deleted entry also includes a note in the Transaction/Check # field which references the original payment date.

Deleted_Payment_Entry_on_BD.png

 

BANK DEPOSIT - Date range of 03/13/2016 to 03/14/2016.

This Bank Deposit report, run over the full date range of the payment entry and the date of the deletion, demonstrates how the positive and negative entries for the deleted payment even out over time, reporting the correct income totals for the date range.

Balancing_Deleted_Entries_on_BD.png

Click here to see how the deleted payment is reflected in the Program Deposit Split report.

 

Accounting for Deleted Payments

Comparing Deleted Bank Deposit Totals to the Program Deposit Split Report

Under normal circumstances where no payments are deleted or payment entry mistakes are made and deleted on the same date, the Bank Deposit report's "Payments" totals will match the Program Deposit Split report's "Payments Recieved on" totals perfectly. That is because the Bank Deposit report is showing a list of transactions that took place on a specific date(s) and the Program Deposit Split report is simply displaying where the money was applied within your company's financial structure at that time.

However, when a payment is deleted one or more days after it has been reported as income, it can cause totals in the Bank Deposit report's "Payments" section to be different from the Program Deposit Split report's totals.

Below are the three possible outcomes a deleted payment can have on the totals in the Bank Deposit and Program Deposit Split reports.

  • If the payment and deletion happen on the same date or within the date range of the report, they will balance each other out in the deleted payment totals. This will result in a zero dollar balance that will not effect the totals in the Program Deposit Split report for the matching date range. (This is the case in the last example shown above.)
  • If there is a positive deleted payment amount in the deleted payments portion of the Bank Deposit report without a matching negative transaction, that means that the payment was not deleted until a date after the date range of the report. This payment will be included as a positive amount in the Bank Deposit's deleted payment totals and in the "Payments Received" table on the Program Deposit Split report.
  • If there is a negative deleted payment amount in the deleted payments portion of the Bank Deposit report without a matching positive transaction, that means a payment was deleted over this date range which was reported as income before the date range of the report. This results in a negative amount in the deleted payment totals on the Bank Deposit report and will be displayed in the "Adjustments" table on the Program Deposit Split report.
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