use a 'clearing bank'

create a sales invoice to the insurance company, paid by cheque, deposited to your real bank, instead of a sales account, use the clearing account

  db real bank

  cr clearing bank

pay expenses to consultant, by cheque from your banking account, expensing the clearing bank

  db clearing bank

  cr real bank

what s Clearing Bank I dont think I have that setup :(

you just need to create an account of type 'bank' in the 1000 range

I call it 'Clearing Bank', knowing that if it has a non-zero balance, I am missing a transaction

just a quick question, is that the same as "cheques to be deposited" account?  I was told I should set that up but I dont know how to link it without messing it up.

no, the 'clearing bank' is not the same - it is a temporary account

the 'cheques/cash to be deposited' can be used when entering customer receipts

in real life, you get a customer check, you put it in your bank bag to be deposited

when you decide to visit the bank, you fill out a deposit slip with all the cheques/coins to deposit

you go to the bank, and the teller takes the funds, stamps the slip, and that's it

so in sage, you can do the same, you record the receipt in sage, deposit to 'cheques to be deposited'

when it time to visit the bank, you 'make a deposit' (under banking), and you select all the checks/cash

  you print the deposit / save (little icon in the top bar) ***don't post it yet ***

  the printed deposit should match the physical slip

when you come back from the bank with the stamped teller slip, you recall the sage slip, adjust if necessary, and then you post

the reason for this process, Sage hasn't figured out how to undo a posted deposit slip, so if you post before being sure there are no errors, it becomes a pain to fix

setup, settings, receivables, linked accounts - allows you to use 'cheques to be deposited' as the bank account

no, the 'clearing bank' is not the same - it is a temporary account

the 'cheques/cash to be deposited' can be used when entering customer receipts

in real life, you get a customer check, you put it in your bank bag to be deposited

when you decide to visit the bank, you fill out a deposit slip with all the cheques/coins to deposit

you go to the bank, and the teller takes the funds, stamps the slip, and that's it

so in sage, you can do the same, you record the receipt in sage, deposit to 'cheques to be deposited'

when it time to visit the bank, you 'make a deposit' (under banking), and you select all the checks/cash

  you print the deposit / save (little icon in the top bar) ***don't post it yet ***

  the printed deposit should match the physical slip

when you come back from the bank with the stamped teller slip, you recall the sage slip, adjust if necessary, and then you post

the reason for this process, Sage hasn't figured out how to undo a posted deposit slip, so if you post before being sure there are no errors, it becomes a pain to fix

setup, settings, receivables, linked accounts - allows you to use 'cheques to be deposited' as the bank account

so the clearing bank account i would create it and then delete it again? im a little confused.

no, create it, use it today for this issue - it can stay in the GL forever with a 0.00 balance

and some day, you'll use it again - I've got another scenario where I'm using now

Ok I get it.  At the moment, in my 1000 accounts, I have:

1050 - Petty Cash  - Subgroup Account- Asset

1065 - Cash "Bank Account ### " - Subgroup Account -  Bank

1067 - Visa - Subgroup Account - Asset

1069 - Employee Profit Sharing Plan - Subgroup Account - Bank

I figure i can use 1055 or somehting for the account you were talking about and 1057 for my Cheque/Cash to be deposited??

I would keep that as a Subgroup Account... and what about the Class?  Would I put them as Asset?

I have both as class of bank

I call mine 'Suspense Account as it is used for same scenario above but also for other transactions not involving the bank that needs to be corrected somehow. I number it as the very first nbr on the chart of account and select the option to not show this account nbr if a zero balance.

That way when you pull up your balance sheet if it is showing a balance you will see it right away and can finish up with making the adjustment that needed to be made.