NXT Accounts Receivable

Christine Downs

Does anyone have experience working with a “split payment”, meaning, the organization received one check to be used for two distinct purposes and the funds must be deposited into two separate bank accounts? What are the best practices in NXT FE? I appreciate your help. Thank you.

Wendy Croker

@Christine Downs I wonder if you went into your bank, they would allow you to split the deposit into the 2 accounts. Then you could just treat it as 2 separate transactions.

If not, I'd deposit it into one account and then transfer the amount needed to the other account. Then in FE, record the net of the deposit and transfer out as one transaction for the first purpose. It means you would need to check off both bank transactions in your bank rec to match the net you recorded in FE.

For example:

• Deposit $100 into the first account.
• Transfer $40 to the second account.
• Record $60 as income in AR for the first purpose and $40 for the second.
• On your bank rec you would match the $100 deposit & the $40 transfer out to the $60 deposit in FE.

It might be cleaner if you have a third bank account.

• Deposit the full amount to the third account.
• Transfer the 2 amounts to the other accounts.
• Record the income for the 2 purposes in FE as deposited into their applicable accounts, no FE entry for the third account deposit and transfers out.
• At bank rec time, ignore the deposit and transfers out on the bank statement for the third account because the cancel each other out.