Tagging a deposit to an invoice and a transfer

Hi, I’d really appreciate some advice on how to split tag a deposit to the current account as payment to a sales invoice AND as a transfer to a Cash On Hand account.

The deposit to the bank was a mixture of cash and cheques, the cheques were to pay off sales invoices, the cash from the till.

On another note, I have just recently migrated my whole years transactions from Clearbooks over 2 days. I have tried most of the cloud solutions - Kashflow, SageOne, Xero, Freeagent - and have found Quickfile to be the most feature rich, intuitive package yet. I’m just about to sign up for a Pro account. Absolutely love it.

Many thanks!

Steven.

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The simplest approach would be to treat the cheques as payments from customers into cash on hand, then the deposit is a straight transfer between accounts (cash to bank).

Hi Ian, thanks for your reply. The problem is that the deposit is a lump sum which is a mixture of cash from the till and cheques from those sales invoices - i’m not sure how to mark those sales invoices as paid.

I normally enter in the weeks takings into the cash on hand account, then when the cash hits the bank, do a transfer from the cash to current account. Its the inclusion of those cheques in the deposit that is throwing me - can I allocate a portion of the deposit to those invoices so that they are marked as paid?

Thanks.

@StevenG I will send you a PM just so I can get a handle on what you’ve done so far.

Thank you also for your positive feedback!

My suggestion was to effectively “treat the cheques as cash” - pay down the invoices with a payment (for the value of the cheques) into your “cash on hand” account. This marks the invoices as paid, and gives you a balance on the “cash on hand” account equal to the total amount of real cash plus the value of the cheques. Now when you deposit the cash plus cheques into your current account you account for it on QuickFile as a transfer from “cash on hand” to “current account”.

An alternative would be to enter the deposit into QuickFile as two (or more) separate transactions on your current account, one for the cash (transferred from “cash on hand”) and the other(s) for the cheque payment(s) from customers. Your QuickFile view of the bank account will have more transactions in it than the statement you receive from the bank, but as long as the balance at the end of each day lines up that’s fine from an accounting perspective.

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