This account is considered your cash escrow clearing account. The account is a current asset. The system will automatically post a debit to this account when reservation payments are entered. You may establish as many cash accounts as needed; however, this is the account that will be automatically debited when reservation payments are entered. This account should be checked daily (by printing the Trial Balance Report) to balance the cash received to the cash posted to the system. It is often desired to establish this account as a clearing account and not the actual cash account. This means that this account is used to determine the daily deposit and then a journal entry is made crediting the clearing account to zero and debiting the actual cash account. This method requires a daily journal entry (or a journal entry for each deposit made) but allows you to have in the actual cash account only the deposit amount entry, not all of the detail that made up the deposit. The detail is kept in the clearing account and its ending balance would always be zero. This method makes it easier to reconcile your bank account. The following demonstrates this method
In the above, four payments (labeled 1-4) were posted for a total of $1000.00. The actual deposit, the amount that will show on your bank statement, is the one amount of $1000.00 not the four individual amounts. A journal entry (labeled 5) was made, using Create Journal Entry from the General Ledger Menu, crediting the cash-clearing account and debiting the cash-escrow account. This entry makes the cash-clearing account have a zero balance, as all clearing accounts should, and the real cash account, cash-escrow, reflect the $1000.00 deposit made.