How-to · Banking and cash
How to split a deposit
Record one deposit for the amount on the bank statement, and split it into lines for each source: customer payments from Undeposited Funds, plus any other lines such as interest, a vendor refund or owner cash. Fees taken out before the money lands go on their own line as an expense.
How-to guides / Split a deposit
The accounting behind it
Your bank shows one deposit of the total. If you record each payment as its own deposit, none of them will match the statement and reconciling becomes guesswork.
Customer payments and sales receipts wait in Undeposited Funds until you take them to the bank. The deposit then moves them all to the bank at once, which is exactly what the statement shows.
Anything that isn't a customer payment (interest, a refund, an owner contribution) gets its own line with its own account.
| Account | Debit | Credit |
|---|---|---|
| Bank | Statement amount | |
| Merchant fees (if deducted) | Fee | |
| Undeposited Funds | Customer payments | |
| Other accounts (interest, refund, owner cash) | Other lines |
Worked example: a $3,410 deposit
You take three customer cheques ($1,200.00, $850.00 and $1,300.00) to the bank with a $60.00 refund cheque from a supplier for returned supplies. The statement shows one deposit of $3,410.00.
| Account | Debit | Credit |
|---|---|---|
| Checking | $3,410.00 | |
| Undeposited Funds | $3,350.00 | |
| Office Supplies | $60.00 |
Common mistakes
- Recording each cheque as a separate deposit when the bank shows one.
- Receiving customer payments straight into the bank and then depositing them again from Undeposited Funds.
- Recording card batches net of fees, so sales are understated.
- Putting a loan or owner contribution on an income line.
In AcboBooks
- Open Make Deposit. Go to Banking → Make Deposit and choose Deposit to and the Date.
- Tick the payments. Under Payments to Deposit (held in Undeposited Funds) tick the payments on this deposit slip, or use Select all.
- Add other lines. Under Other deposit lines, add each extra item with Received from, From account, Memo and Amount. A new blank line appears as you fill the last one.
- Fees. If a processor took a fee, fill the Less merchant fee line with the fee expense account and amount. The total becomes Net Deposit to Bank.
- Save. Check the total matches the statement and click Save Deposit. Use Print deposit slip if you need one.
Bank Feeds also has Split… to add one imported line across several accounts.
Menu names are from AcboBooks 0.2.1. Not using it yet? Try it free for 15 days, with the sample company to practise on.
Questions
Why don't my deposits match the bank?
Usually because payments were recorded as separate deposits while the bank shows one total, or because card fees were not split out.
What is Undeposited Funds?
A holding account for payments received but not yet banked. The deposit moves them to the bank together.
Can I edit a deposit after saving it?
Yes, from Activities → Transactions with Edit, as long as its date isn't in a closed period.
Related how-to guides
Terms used here
- How to record credit card payments and fees
- Owner draws vs contributions
- Bank reconciliation in AcboBooks
Updated October 25, 2026. General bookkeeping information, not tax, legal or accounting advice. Rules differ by state and province and change over time; check with the IRS, the CRA or your accountant for your own situation.
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