Process Daily Cash Deposits With Cash On-Hand Account

Any cash and check transactions received in person are entered into a cash on-hand bank account. The bank account represents any money received by the agency that has not been deposited at the bank. Any electronic funds (EFT) are automatically posted directly to the operating bank account.

This procedure outlines the day-to-day process of accepting cash and check transactions, and creating a single daily deposit in Newton. The single daily deposits will match the amounts shown on your monthly bank statement.

Any incoming financial transactions in Newton are referred to as Cash. Any outgoing transactions are referred to as checks.

Electronically received cash is referred to as EFT cash, and electronically transferred checks are referred to as wire checks.

Create A New Default Cash Bank Profile

For the example, bank profile code: 200 - Cash On-Hand will be used for all physical cash/check transactions. This bank account is a holding account until the money is physically deposited into the operating account. This account will always reflect the actual amount of money on-site waiting to be deposited.

Bank account code: 101 represents the default operating account at the bank.

Create A New Bank Profile

1. Select Profiles -> Bank.
2. Select Add.
3. Enter a unique code (From Example: 200).
4. Enter a name. (From Example: Cash On-Hand).
5. Select Save -> Exit.

Set The Default Cash Bank Code

1. Select Profiles -> Agency.
2. Select Search to load your agency profile if different than 01.
3. Select the Accounting Setups tab.
4. Enter the new bank code for Default Bank for... -> Cash Transactions. (From example: 200).
5. Select Save -> Exit.

Enter Daily Transactions

Daily transactions are entered as EFT transactions, or transactions that must be physically brought to the bank.

The Commission Download system has a different set of options for the default cash and check bank profiles. Other -> Download -> Options -> Commission tab.

Enter Daily Physical Cash and Check Transactions

When a check is received in the mail or in person, deposit the cash into the default bank. (From example: 200).

When cash is received in person for Agency Bill policies, deposit the cash into the default bank. (From example: 200).

When cash is received in person for Direct Bill policies (Transmittal), deposit the cash into the default bank. (From example: 200). When prompted, create the offset check to the default operating account (From example: 101).

Enter Daily EFT Cash and Check Transactions

When an EFT cash transaction is posted to your bank account, deposit the cash receipt into the normal operating account (From example: 101).

Remember to change the default bank code to 101 when entering the transaction(s).

When an EFT check transaction is posted to your bank account, post the check into the normal operating account (From example: 101).

Create Bank Deposit

Verify the Daily Cash Amount

1. Select AR -> Cash Reports -> Cash Deposit Report.
2. Enter the Bank Code. (From example: 200)
3. Select Preview to display the current day's physical transactions.
4. Verify the total at the bottom matches the cash and checks received.
5. Print the report if correct and if a physical report is desired.

Create The Bank Deposit Transaction

1. Verify The Daily Cash Amount in Newton matches the physical cash and check totals.
2. Select G/L -> Bank Transfer.
3. Enter Source Bank. (From example: 200).
4. Enter operating account Destination Bank. (From example: 101)
5. Enter the Amount from step 1.
6. Enter the Department.
7. Enter the deposit reference number from the deposit slip as the Description if available. This deposit description will display on the bank reconcile.
8. Enter the Bank Tranfer GL.
9. Select Ok.

For additional information see: Bank Transfer in Newton

Create Multiple Bank Deposits A Day

When the cash deposit report is completed to determine the deposit amount, select Reconcile Status -> Only unreconciled.

After the first bank deposit is created, the deposited transactions need to be marked as reconciled.

1. Select AR -> Cash Transaction.
2. Select Reconcile.
3. Enter the starting and ending cash numbers from your first cash deposit report.
4. Select Accept -> Exit.

Reconcile and Audit Bank Deposits

Reconcile Monthly Bank Deposits

During your monthly reconcile, the bank deposits will display as a single daily transaction.

EFT transactions will show as individual items.

Audit Bank Deposits

If an individual transaction is ever deleted or altered by an authorized user, a daily cash deposit report can be used to quickly identify which day has changed.

The cash on-hand bank profile (From example: 200) should never retain a daily balance. The balance sheet will quickly display a procedural error.