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What is the purpose of selecting Group With Other Undeposited Funds on Sales and Payment Receipts?


The Undeposited Funds account is an account that reports on money that is received by your company until it is deposited into your Bank account.  This account is typically setup as an Other/Current Asset account, and is used when you are ready to prepare your Bank Deposits in Total Office Manager.

It is recommended that any Customer Payment, regardless of the method of Payment (i.e Check, Cash, Credit Card, etc.) is deposited to the Group With Other Undeposited Funds on the Receive Payments and/or Sales Receipts forms. This will allow you to pick and choose which Customer Payments are included in your batch Deposits to your Bank Account.

Even if the Customer pays by Credit Card and you are using the Credit Card processing feature in Total Office Manager, it is recommended that you still group these Payments with the other Undeposited Funds.  The reason behind this is quite simple.  Some Credit Card Companies charge a fee per Credit Card payment that is processed.  Although the Customer may have paid you $100.00, the Credit Card merchant may charge you a 2% processing fee.  Subsequently, only $98.00 of the Customer Payment is then deposited to your Bank account. By grouping with other Undeposited Funds, you will be able to account for the processing fee when you enter the Deposit.