Deposits

Deposits represent funds received into the bank account from entities that owe money to the business.

Normally deposit lines are positive, but in some cases negative amounts need to be added to represent amounts that were deducted before the payment was received. For example a 3rd party agent may collect payments for you and deduct a 1% fee. In this case there may be a payment of +$100 and a -$1 fee entered as a deposit.

In order to correctly track available funds, $1 or the +ve amount is automatically allocated to pay out the -$1, leaving available funds on the deposit of $99. This remaining $99 represents the actual total amount in the bank account and it is this amount that can be allocated to pay invoices that are registered in the system.