Can you please advise the correct or best method to record a bank receipt.
I collect cash from members of my club and pay it into the bank as a lump sum. Is it best to make each payment individually which will not appear on the statement or as a lump sum and then journal them off to the relevant account.
I get the same issue with receiving cash.
I need to record these payment against the individuals that make them.
I have currently set them all up as customers but I do not want to create invoice for each payment they make.
some advice most appreciated
First, understand that you cannot associate a receipt in a bank or cash account with a specific club member (customer) unless you first raise sales invoices. So-called cash receipts (as opposed to receipts for sales on credit) are not associated with individual customers, even if you put the customer’s name in as Payer. See this Guide: https://www.manager.io/guides/7321.
So you will need to create sales invoices. There are two approaches that can simply this chore:
Make a first sales invoice and clone it to others. The cloned invoices, if identical for all customers (members), can simply be edited by changing the customer name.
Set up recurring sales invoices under Settings. That way, you only have to go through the work once. Manager will tell you when recurring sales invoices need to be issued. See this Guide: https://www.manager.io/guides/9488.
Neither is the right approach. When receiving money into a bank account, enter a line item for each member’s contribution/dues. Post each to Accounts receivable => Customer name => Invoice. The receipt total will match the amount deposited, which is what you will be reconciling with the bank statement. Individual sales invoices will be properly credited. Handle cash receipts the same way.
for your use case, it will be better if you enable both Cash Accounts and Bank Accounts.
receive the individual payments in the Cash Accounts.
then make a Transfer to the Bank Account.
Bank Accounts should be enabled if receipts and payments will be made from/to a bank account. Cash accounts should be enabled if receipts and payments will be made in physical money and held in a petty cash fund. Those decisions are independent of whether transactions are individual or lumped.
Further, a receipt in the form of a cheque cannot be entered into a cash account. It must be in the form of a bank receipt.
There is no reason to be using transfers.
Finally, while I did not say so specifically in my first response, the Cash Accounts tab may not be necessary even if members pay in physical cash, as long as the receipts are directly deposited in a bank account. The purpose of a cash account is to record transactions related to cash held at the business, as opposed to being held in a financial institution.
@Gally says they receive cash from their members. the members are not paying to the bank account.
so the Cash Account is where the transactions are to be recorded.
since the cash cannot be kept at the business place the cash accumulated over a day or week is then deposited to the bank account as a lump sum. I believe in Manager we record the transaction as a transfer from the Cash Account to the Bank Account.
That is certainly one way to do it, and completely correct. If, after some time, physical money is then taken from the amount on hand and deposited to a bank account, a transfer is the way to accomplish that.
I was not clear enough with my statement about transfers. @Gally originally mentioned journaling off cash receipts to relevant accounts, and you mentioned making a transfer after receiving individual payments. Both comments implied that perhaps one or both of you was considering transferring the receipts one by one.
My focus was to try to make clear that multiple receipts from several members (customers) could be put on one receipt form, going either into a bank or cash account, with individual line items posted to customers’ subaccounts under Accounts receivable. My biggest worry was that @Gally though he could bypass sales invoices and still associate the receipts with individual members.
When I wrote about transfers, I was emphasizing that they could be avoided entirely if the physical money received was taken directly to the bank and deposited. If you are not holding physical cash at the business, there is no reason to necessarily use a cash account. When I disagreed with you, @sharpdrivetek, I did not mean to imply you were wrong. I only meant that both Bank Accounts and Cash Accounts tabs might not be necessary.
Hopefully, it goes without saying that if both bank and cash accounts are used, there is no reason whatsoever that amounts transferred between them need to match amounts received from members. From an accounting standpoint, what needs to match are the sales invoices and the members’ payments. Money can be held in either a bank or cash account according to what is convenient to support operations of the club.
So, did I make myself clearer? Or did I only confuse things more?
Between them, you should be able to see how you can allocate a receipt to a customer’s subaccount of Accounts receivable without issuing a sales invoice. But then, you only build up a contra balance in Accounts receivable. With Manager’s current capabilities, your best bet is really to issue the sales invoices. It’s not as much work as you might think when you use the tools I told you about in my first response. And you’ll be able to issue customer statements that will resolve any disputes about who has paid, etc.
You just need to make a multi-line receipt where each line represents the individual and the total represents the lump sum on the statement - then no Journal is required
The above example would apply where you have created an invoice first, but if you don’t want to create the invoices first - then replace “Accounts Receivable” with the required P&L Income and put the members name in the description field.
