Bank Flow

Complete end-to-end documentation of bank transactions in NetSuite - covering deposits, payments, transfers, and reconciliation.

---

In This Section

Page	Description
Deposits	Customer payments and bank deposits
Payments	Vendor payments and check runs
Reconciliation	Bank statement reconciliation

---

Master Flow Diagram

Bank Transaction Types
─────────────────────────────────────────────────────────────────

┌─────────────────────────────────────────────────────────────────┐
│                        Money In                                 │
├─────────────────────────────────────────────────────────────────┤
│                                                                 │
│  Customer            Undeposited                Bank            │
│  Payment             Funds                      Account         │
│  ┌─────────┐        ┌─────────┐               ┌─────────┐       │
│  │   A/R   │  ───▶  │ Holding │  ─── Deposit ▶│  Cash   │       │
│  │   ↓     │        │ Account │               │   ↑     │       │
│  └─────────┘        └─────────┘               └─────────┘       │
│                                                                 │
└─────────────────────────────────────────────────────────────────┘

┌─────────────────────────────────────────────────────────────────┐
│                        Money Out                                │
├─────────────────────────────────────────────────────────────────┤
│                                                                 │
│  Bank                                          Vendor           │
│  Account                                       Payment          │
│  ┌─────────┐                                  ┌─────────┐       │
│  │  Cash   │  ─── Check/EFT ─────────────────▶│   A/P   │       │
│  │   ↓     │                                  │   ↓     │       │
│  └─────────┘                                  └─────────┘       │
│                                                                 │
└─────────────────────────────────────────────────────────────────┘

┌─────────────────────────────────────────────────────────────────┐
│                      Bank Transfer                              │
├─────────────────────────────────────────────────────────────────┤
│                                                                 │
│  Bank A              Bank Transfer             Bank B           │
│  ┌─────────┐        ┌─────────────┐          ┌─────────┐       │
│  │  Cash   │  ───▶  │ From → To   │  ───────▶│  Cash   │       │
│  │   ↓     │        └─────────────┘          │   ↑     │       │
│  └─────────┘                                  └─────────┘       │
│                                                                 │
└─────────────────────────────────────────────────────────────────┘

---

Banking Basics

Bank Account Types

Type	Purpose	Examples
Checking	Operating funds	Main operating account
Savings	Reserve funds	Emergency fund
Payroll	Payroll processing	Salary payments
Money Market	Short-term investment	Interest-bearing

Key Transactions

Transaction	Direction	GL Impact
Customer Payment	In	A/R ↓, Undeposited Funds ↑
Deposit	In	Cash ↑, Undeposited Funds ↓
Vendor Payment	Out	A/P ↓, Cash ↓
Bank Transfer	Internal	From Bank ↓, To Bank ↑
Bank Fees	Out	Expense ↑, Cash ↓
Interest	In	Cash ↑, Income ↑

The Undeposited Funds Flow

Why Undeposited Funds?
─────────────────────────────────────────────────────────────────

Real World:
  You receive 5 checks during the day
  At end of day, you take all 5 to the bank
  Bank shows ONE deposit for all 5 checks

NetSuite:
  Payment 1: $100 → Undeposited Funds
  Payment 2: $200 → Undeposited Funds
  Payment 3: $150 → Undeposited Funds
  Payment 4: $300 → Undeposited Funds
  Payment 5: $250 → Undeposited Funds
  ─────────────────────────────────────
  Deposit: $1,000 → Bank Account

This matches your bank statement!

---

GL Flow Summary

GL Accounts Involved
─────────────────────────────────────────────────────────────────

Balance Sheet:
  Bank/Cash Accounts (Assets)
    └── Checking, Savings, Petty Cash

  Undeposited Funds (Asset)
    └── Temporary holding for payments

  Accounts Receivable (Asset)
    └── Customer balances

  Accounts Payable (Liability)
    └── Vendor balances

Income Statement:
  Bank Fees (Expense)
    └── Service charges, wire fees

  Interest Income (Revenue)
    └── Interest earned

---

Quick Reference

Transaction Summary

Transaction	Debit	Credit
Customer Payment	Undeposited Funds	A/R
Deposit	Bank Account	Undeposited Funds
Vendor Payment	A/P	Bank Account
Bank Transfer	To Bank	From Bank
Bank Fee	Expense	Bank Account
Interest Income	Bank Account	Income

Payment Methods

Method	Processing	Clearing
Check	Manual	Days to clear
ACH/EFT	Electronic	1-3 days
Wire	Electronic	Same day
Credit Card	Electronic	Batch dependent

---

Next Steps

• Deposits - Customer payments and deposits
• Payments - Vendor payments
• Reconciliation - Bank reconciliation