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Rounding Deposits for cash sales and how to account for the difference

Hi,

 

I'm helping a friend handle unmatched deposits that are sitting in UNDEPOSITED FUNDS. These are cash sales that came in from Shopify and from Square in 2017 & 2018.

 

Instead of depositing the exact amounts (dollars & cents) into her bank account, she rounded each time she made a deposit so she could use the ATM and not have to deposit spare change.

 

This means there is never an exact match when attaching transactions to her actual ATM CASH DEPOSITS to her bank account.

 

I see that I can use "resolve" to make the amount correct, but I am not sure how to categorize the additional amounts I add to make the deposits match.

 

I don't want the additional amounts to show up as income or expense - they are just additional funds that she will later deposit once we get everything else matched.

 

Right now I have these amounts categorized as "Additional Amounts to Round Off Deposits to match" as an income category, but this falsely inflates total income.

 

What category should I use for these rounded amounts to make the cash deposits match the individual transactions? If not an income category, where can I route these until we get everything matched and determine what the remaining deposit should be?

 

Note that she hasn't spent the undeposited amounts - she just hasn't deposited all because she didn't want to deal with change.

 

Example:

 

There are 5 transactions from Shopify paid in cash totaling $157.24.

 

My friend would, in this case, deposit only $157.

 

How can I categorize that undeposited 24 cents so I can later have her prepare one deposit and catch all of these little amounts that she rounded instead of depositing to make the year end for each year match?

 

I am new to quickbooks online - hoping this makes sense. Thank you!

Solved
Best answer 03-05-2019

Accepted Solutions
Established Community Backer ***

Re: Rounding Deposits for cash sales and how to account for the difference

There should be a cash type bank account, deposit the change to the cash type bank account

 

3 Comments
Established Community Backer ***

Re: Rounding Deposits for cash sales and how to account for the difference

There should be a cash type bank account, deposit the change to the cash type bank account

 

Not applicable

Re: Rounding Deposits for cash sales and how to account for the difference

So simple, and so entirely helpful! This makes sense. Thanks so much!

Content Leader

Re: Rounding Deposits for cash sales and how to account for the difference

Glad to hear Rustler was able to help you out, klknott. Remember, the Community always has your back if you ever need assistance in the future. Take care.

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