Allocating unknown deposits

[Mathilda]

Hello all - can someone please tell me how to allocate a deposit from a customer which I can not identify.  I've learned from answers to previous posts on the Forum that I should create a "suspense" or "holding" type of account, that it is supposed to be a liability and the type must be bank/credit card (to be able to show up at the "deposit to account" dropdown menu.  My first question is - Is it in fact a liability? Becasuse in that case I can only have the type as "credit card" which doesn't make sense as this has nothing to do with a credit card account.  So my logic tells me that it should be under the assets, with the type as 'bank' - but please guide me as I am really confused right now

Thanks in advance!

[Tracey_H · Accepted solution]

Hi @Mathilda 

Thanks for your post. Suspense accounts are generally set up as liability accounts but can also be set up as asset accounts. When it comes to choosing credit card as the Account Type, this is only so that you can select that account as a Paid from/Deposit to account and so that it can be reconciled back to zero. Selecting credit card won't affect your financial reports in any way.

The important thing to remember is that the suspense is a temporary account, amounts are only posted there until you find the correct transaction or account to allocate to. So if you only use the suspense account a couple of times a year it's perfectly fine to set it up as a liability account. Ideally you would have moved the payment to the correct customer before lodging your next BAS so that the income is included in that quarter.

If you're not sure or have concerns I would recommend checking with your accountant to ensure it is set up correctly for your business.

Please let me know if you need further help.

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

[Mathilda]

Hi @Tracey_H - thanks for your help!

[Tracey_H]

You're very welcome @Mathilda 

Please post again if you need help in the future.