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Deposits

Deposits – Cheques, Electronic payments (wire transfers, ACH), Credit Card and Debit Card payments, Cash

Funds flow into the University in a variety of ways and for a variety of purposes. The source and purpose of all funds received (cash, cheques, bank transfers, credit/debit cards) must be documented and recorded on a McGill FOAPAL by processing a “deposit” document in Banner. Cheques and cash are then deposited at the bank.

All McGill University bank accounts are held with the Royal Bank of Canada and are administered by the Banking Services area of Financial Services. Under no circumstances may a department or individual independently open a bank account in McGill University's name.

Proper accounting procedure dictates that receipts should be issued for all sales and that there should be segregation of duties in receiving, depositing and verifying receipts. Each Unit is responsible for assuring that revenues are properly recorded and posted on the ledger (by processing a “deposit” document in Banner) and that an adequate audit trail exists.

All deposits received by a Unit must be processed by creating a “deposit” document in Banner and then forwarded to the bank or to Banking Services as soon as possible.

TIP: Deposits for Donations

If deposits are donation related, contact the Donation and Record Services Help Desk in University Advancement (records.alumni [at] mcgill.ca (email) | 514-398-2787) to find out how to process the deposit.

A separate deposit document must be completed by currency:

  • Canadian dollars
  • U.S. dollars
  • Each foreign currency

Transactions reflecting deposits in other currencies will be posted to the appropriate FOAPAL(s) in the Canadian dollar equivalent.

Cheques

Only cheques made payable to McGill University or The Royal Institution for the Advancement of Learning may be deposited to McGill’s bank accounts. The faculty, department or c/o name must not appear on the first line (i.e. “Pay to the order of”), but may appear on subsequent lines in this section of the cheque or in the memo section.

Whenever possible, cheques in Canadian or US funds, drawn on a Canadian or US bank respectively, should be encouraged since the University holds bank accounts in both currencies.

Units having regular cheque deposits should contact the Banking Services staff to arrange for bank deposit slips (with a departmental identifier) so that deposits may be made at the following bank branches:

  • Main branch of the Royal Bank of Canada located at 1 Place Ville Marie (PVM)
  • Branch located at 1100 Sherbrooke (corner Peel)

Units who receive a high volume of cheques for deposit should send their deposits directly to the bank using the security company service contracted by McGill. For more information about McGill’s contracted supplier, consult the Procurement Services website (sign-in is required) and expand the section on Transportation of Valuables. Should you decide to request services, contact the supplier directly and send an email to banking [at] mcgill.ca (Banking Services) informing them of your decision.

Departments who do not have bank deposit slips, must deliver (in person or via internal mail) cheques to Financial Services. A “deposit” document must first be created in Banner.

Best Practice

Units who do not have bank deposit slips should deliver cheques to Financial Services within 48 hours of receipt.

Revenue must be recorded in the same fiscal period in which it was received.

Any individual cheque equal to or exceeding $250,000 (CDN/USD) must be deposited on the same day that it is received. If you do not have arrangements with a transportation company to deliver your deposits to the bank, or such a cheque is received on a day that you are not scheduled for a transportation company pick-up, immediately contact the Banking Services Supervisor (ext. 3353).

Cheques received in payment of invoices issued by Accounts Receivable, Financial Services, should not be deposited. Forward these cheques to Accounts Receivable, Transaction Services - 3rd Floor, 3465 Durocher for processing.

Processing a "cheque" deposit from beginning to end:

1. Make sure the cheque details are accurate/complete:

  • Cheque date - dated within the last 6 months unless otherwise specified as not being stale-dated
  • "Pay to the order of" clearly states McGill University or The Royal Institution for the Advancement of Learning
  • Amount is clearly marked
  • Cheque is signed

2. Determine if taxes are applicable (more information) and the appropriate tax group and account code (more information) to use

3. Have the FOAPAL information on hand

4. Create the Deposit document in Banner using the appropriate Banner form based on currency - FGADCSR ( Canadian | Foreign) or FGAJVCD ( US) (view the How To Use Banner page)

5. If your Unit is set-up with bank deposit slips:

  • Enter the number in the deposit slip field in Banner
  • Record the Banner document number on the back of each cheque

TIP: Deposits to Restricted Funds (i.e. Fund Type = 20) must be approved and deposited by Research Financial Management Services (RFMS). Therefore, originating Units must always leave these deposit documents "In Process" and forward these cheques to RFMS (3rd floor, 3465 Durocher Street).

Cheques in Foreign currencies must be deposited by Financial Services. Therefore, originating Units must always leave these deposit documents "In Process" and forward these cheques to Financial Services.

  • Complete the document.
  • Once completed, bring the cheque(s) to the bank or forward to Financial Services

6. If no deposit slip number is available:

  • Leave the deposit slip field blank
  • Record the Banner document number on the back of each cheque
  • Leave the document “In Process”
  • Send the cheque(s) to Financial Services for completion. Once Banking Services has deposited the cheque at the bank, the deposit slip number will be entered in Banner and the document will be completed.

7. Once the document is completed, it is posted to the ledger. The transaction will appear when querying the fund.

Cheques in non-USD foreign currencies will only appear in the desired FOAPAL once successfully converted and deposited to the university’s bank accounts. The amount of time required to process these foreign deposits depends on many factors, the least complicated will take 2-5 days, the most complicated may take several weeks.

Cheques made out in a currency other than the normal currency of the issuing bank (for example, a cheque made out in Canadian dollars and drawn on a German bank) must be sent on collection. These deposits may take two to three months for processing and are subject to large bank processing fees. It is therefore recommended that only items exceeding $300 Canadian are submitted for collection.

To avoid unnecessary fees and delays, foreign currencies should be remitted via wire transfer. Transactions reflecting deposits in other currencies will be posted to the appropriate FOAPAL(s) in the Canadian dollar equivalent.

Deposited cheques may be rejected by the bank for the following reasons:

  • Insufficient funds
  • Payment stopped
  • Post/stale dated
  • Account closed
  • Change not initialed
  • Body and figures differ
  • Funds frozen/not cleared
  • Signature(s) are irregular/required/illegible/unauthorized
  • Other (as communicated by the bank)

Should this occur, the rejected cheque, with a memo of explanation, will be returned to the originating Unit for follow-up with the payee. At the same time, the McGill FOAPAL that was originally credited with the funds will be charged the same amount. These delays can be avoided by ensuring that all cheque information is accurate before accepting a payment.

Electronic payment and Wire Transfers

Incoming wire transfers are received by Banking Services in Financial Services on a daily basis. It is important to educate payers to provide details to reduce delays of receipt and to make payments easily identifiable. The details section of the wire must include, at minimum:

  • Contact person at McGill University with their telephone number
  • Purpose of the payment

Once the wire is received, Banking Services will communicate with the identified contact person at McGill to request the following information:

  • FOAPAL to credit
  • Are there any taxes included in the payment?
  • Supporting documentation, if the payment is to be credited to a non-research grant or contract fund.

Whenever possible, payments in Canadian or U.S. funds should be encouraged, as the University holds bank accounts in both of these currencies.

Incoming wire transfers are deposited and recorded by Financial Services. Once recorded, they will appear on financial statements. Transactions reflecting deposits in other currencies will be posted to the appropriate FOAPAL(s) in the Canadian dollar equivalent.

Credit card and Debit card payments

Any Unit setting up an operation to receive payments (for goods or services rendered) must be given an approved University MERCHANT account. Financial Services is the only administrative body entitled to create merchants. In order to request a merchant account, you must complete The Merchant Questionnaire. For more information about accepting credit card and debit card payments, consult the Merchant Tool Kit.

Units set-up to receive credit card and debit card payments must routinely process deposit documents in Banner to record this revenue. Revenue must be recorded in the same fiscal period in which it was received.

  • In order to know how much to book for each card type (MasterCard, Visa, Amex), you will need to gain access to Merchant Direct, the online Moneris Solutions reporting tool. Banking Services will set you up with an account and send you the login credentials. If you need help on running the report, send a request for help to banking [at] mcgill.ca (Banking Services) to set up a telephone appointment (preferred), or call (514) 398‐8405.
  • E‐commerce: To determine who signed up for the conference/seminar/workshop, you must contact your e‐commerce store developer, who will be able to provide you with the details of each registrant (the information they filled out online when they registered) – this information is not available from Moneris.

Best Practice

Best practice is to record credit card and debit card payments on a daily or, at minimum, a weekly basis.

All merchants receive clear instructions from Financial Services on whether or not taxes are to be charged for the goods/services being sold – you must follow these instructions and you are responsible for properly remitting the appropriate taxes by indicating the appropriate Tax Group Code in the deposit document sequence.

Processing “credit card and debit card payment” deposits from beginning to end:

  1. Make sure you know the amount to book for each card type (MasterCard, Visa, Amex) and that you have registrant details on hand (if applicable)
  2. Have the FOAPAL information on hand and the appropriate tax group and account code to use
  3. Create the Deposit document in Banner using the FGADCSR Banner form (view the How To Use Banner page)
  • Be sure to select the appropriate radio button to reflect the card type
  • In the sequence description field, enter information in the following format: 1110 xxxxxxxxx [where 1110 is the date that the transactions were processed in MMDD format, and xxxxxxxxx is the last 9 digits of your Moneris (or Amex) merchant number]
  • Complete the document

4. Once the document is completed, it is posted to the ledger. The transaction will appear when querying the fund.

Cash

Cash should only be accepted by Units equipped to do so (i.e. with a safe and other security equipment). Large amounts of cash should never be accumulated. If overnight storage is unavoidable, funds should be kept in a safe. Cash should be delivered to the university’s bank by the university’s contracted secure transportation company. For more information about McGill’s contracted supplier, consult the Procurement Services website (sign-in is required) and expand the section on Transportation of Valuables. Should you decide to request services, contact the supplier directly and send an email to Banking Services informing them of your decision.

Best Practice

Best practice is to make deposits, at minimum, once a week or even twice a week depending upon the volume received.

Revenue must be recorded in the same fiscal period in which it was received.

If you have received a one time payment in cash, please contact the Banking Services Supervisor (x.3353) for instructions on how to get the money deposited. Necessary precautions should be taken with respect to personal security. No person should walk on campus or to the bank with sums of cash in excess of $1,000.

To reduce cash handling, alternate methods of payment such as cheque or credit card/debit card payment should be offered to the University's customers.

Processing “cash” deposits from beginning to end:

  1. Determine if taxes are applicable (more information) and the appropriate tax group and account code (more information) to use
  2. Have the FOAPAL information on hand
  3. Create the Deposit document in Banner using the appropriate Banner form based on currency - FGADCSR (Canadian) or FGAJVCD (US)  (view the How To Use Banner page).
  4. If your Dept. is set-up with bank deposit slips:
  • Enter the number in the deposit slip field in Banner
  • Complete the document
  • Once completed, ensure that the cash is brought to the bank as soon as possible

5. If no deposit slip number is available:

  • Leave the deposit slip field blank
  • Leave the document “In Process”
  • Contact the Banking Services Supervisor (x.3353) for instructions on how to get the money deposited. Once a bank deposit slip number has been entered in Banner, the document will be completed.

6. Once the document is completed, it is posted to the ledger. The transaction will appear when querying he fund.

Frequently Asked Questions

Question Answer
May I prepare one deposit document for multiple cheques and/or multiple payment types? Yes.
  • You may prepare one deposit document for multiple cheques as long as they are all in the same currency. A separate sequence should be completed for each cheque.
  • You may prepare one deposit document for multiple payment types as long as as they are all in the same currency. A separate sequence should be completed for each payment type (cheques, debit card, master card, visa, american express or cash).
I am preparing a deposit and it is asking me for a document total. What would it be? The document total is the total of all sequences entered within a document. For example, if you are depositing only one cheque, the document total will match the cheque amount. If you are depositing multiple cheques, the document total will be the total of all cheques entered in the document.
I am preparing a deposit document and it is asking me for a deposit slip number. Where should I get this from? If your Unit normally makes deposits to the bank, you will have deposit slips on hand in your office. Deposit slips are mandatory only when making cash and cheque deposits. If your Unit is not set-up with bank deposit slips, and you are processing a cash or cheque deposit, leave the Bank Deposit Slip field blank and leave the document "In Process".
How do I open a deposit document completed by mistake? If you have completed a Deposit document by mistake and it is missing a deposit slip number, the document will revert to the status of "In Process" automatically. If you have entered a deposit slip number or even a single digit or a character, the Document will be completed and no further changes will be allowed. The only way to correct this situation is to reverse the document by creating a new one (for each sequence, be sure to select the opposite symbol in the D/C field). If you still need to record the deposit, you will need to process a new document with the correct information.
I prepared a cheque deposit document and it was already posted to the fund. Now, I need to do a refund. How should I proceed? You need to submit a payment request to issue a refund for a cheque already deposited to a fund. Proof of the original payment and/or the calculation used to arrive at the refund amount is required as supporting documentation.
Now that I have deposited my revenue, how do I spend it? Once revenues are posted, the balance must be moved to a spendable account (6xxxxx, or 7xxxxx). Verify how the fund is setup using FTMFUND > FZMFUND (Budget for Revenue). If the Auto radio-button is selected, then a feed entry (“F” document) will be posted on your fund. If the Manual radio-button is selected, then the Fund Administrator will prepare a journal entry (if you do not see a journal entry, contact the Fund Administrator).
What do I do if a document is disapproved? If the document is disapproved, you will receive a system notification email with the document number and a brief explanation as to why and who disapproved it. The journal status will change to "In Process" - you will be able to make changes to the document using the Banner form FGAJVCQ and re-submit it.
Note: The individual who completed the document may view the disapproval message in Banner by accessing the form GUAMESG or by clicking on the link Check Banner Messages in the My Links section on the opening screen of Banner.
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