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  • Writer's pictureEH Lim

Unknown fund received

An unknown receipt occurred could be some time due to invoices are generated by an isolated invoicing system and not yet recorded in the accounting system when payment received, or due to payment made by third parties which you need to clarify.

You may park the fund received temporarily in a clearing account (the transit account) so to proceed with the bank reconciliation and month-end closing while waiting for clarification or locating the missing invoice.

To use the account as a paying or receiving bank in payment or receipt transaction and show it in the current liabilities section of the Balance Sheet report, you have to set the Clearing account as a Bank account type with the bank account as a Credit Card.

Use the Transfer Funds (from the Command menu) feature in MoneyWorks to transfer the fund from Clearing account to the Bank account when unknown fund received. This debit the Bank and credit Clearing account.

Do a receipt into the Clearing account once you have located and recorded the missing invoice. The receipt debit the Clearing account and credit Accounts Receivable. The Clearing account is a transit account and should not have any balances once it has offset with the outstanding invoices. You can counter-check the entry by making an account enquiry of the Clearing account from the Enquiries menu.

MoneyWorks® by Cognito Software has the simplicity and features you want, and the power and flexibility you need. Download a trial to test drive MoneyWorks accounting system.

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