I am on the committee for a not for profit flower society which has a working bank account and 2 term deposit accounts, which are never touched. I have been reading all the forum posts and have not found the right answer, so let me suggest what I am thinking of doing.
Open the investment tab and add the 2 term investment accounts with 2 opening balances. These will show in the assets section, which is good.
Every 6 months when the interest is received, I just add it to interest received tab, which is also good.
If we decide to change one of the term deposits then I can just delete the current one and add the new one, which is really good.
Can anyone see anything I am missing, as it looks like the best way to treat term deposits/investments for this society
Term deposits should be created under Bank and Cash Accounts tab. Investments tab is actually for tradeable securities where the price of each security will fluctuate.
The problem then, is when you put it under bank and Cash accounts tab is some think it is liquid and it is not whereas the investment shows it is an asset and not liquid
You could create separate control accounts for the term deposits and classify them as long term assefs
As @Joe91 says, you would create different control accounts for each bank account group. So term deposits could be under Control account named Term deposits. This way it shows on balance sheet correctly and not mixed up with liquid cash.
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