Depositing a Cheque into an account

If you wish to record the cheque number of a deposited cheque then you can use the “Deposit Book” screen. This is a simple screen that creates a general journal entry for the depositing of a cheque or other money. The screen also allows the recording of the amount of tax that was included in the deposit.

If you operate a very simple business, or home finances, then you could use the deposit book facility to record all receipt of funds (e.g. Wages).

Do not use the deposit book facility to receive payment for an invoice/sale that has been entered. You must use the receipts module for this purpose.

When entering a deposited cheque remember to enter the cheque number into the "Cheque Number" field.

If sales tax, VAT, GST, etc is incurred by you as part of the deposited amount on the cheque then this can be recorded by selecting the sales tax code.

If only part of the deposit has tax applied then you can override the tax total amount with the appropriate amount of tax and the program will correctly calculate the amount of the deposit that had tax applied.

If the deposit includes a withholding component then this too can be recorded. Select the withholding account and then enter the amount of withholding that is attributable to this deposit.

The withholding amount is in addition to the deposit amount. This can be used if you are receiving wages that are paid by cheque and have had income taxes withheld from the deposit by your employer.