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***No matter where I go I always get asked this question, so I felt it appropriate to talk about it.

An Outstanding Deposit / Wire (Deposits-in-Transit) are funds due to your company that have not been received. In some cases these are funds that you have posted in your software program and have yet to make the physical deposit at the bank. If a deposit is made after the cut-off time from the bank on the last day of the month, the deposit may not be credited until the first business day of the next month.

For example: You take a deposit for a file down to your bank at 3:00 PM on the last day of the month. Most bank cutoffs for same day deposits are 2:00 PM, so your deposit will be credited the next business day. The next business day is now in the next month; therefore your deposit that was posted in your software is not credited and is listed as outstanding.

The Outstanding Deposit / Wire report will identify the file in which funds are due. Even though the Trial Balance Report states this file has a zero balance, in reality the file is short the funds from the earnest money deposit.

!!!Note: Although an outstanding deposit is a positive value on the “3-way” reconciliation, in reality that particular file is short and utilizes other files funds to make up for the shortage.

The Outstanding Deposits / Wires Report are a part of the Adjusted Bank Balance that makes up the second part of a “3-way” reconciliation. This report is generated after reconciling the account and printing the designated reconciliation from your software program.

!!!Note: Not all software systems use the name “Outstanding Deposits Report.” This report maybe called other names such as “Outstanding Receipts Report” or “Deposits-in-Transit”.

Information and Follow-up:

I highly recommend agents to review their Outstanding Deposits / Wires Report after reconciling the account to reveal files that need follow-up in effort to avoid monetary loss.

In addition the agent will need to review:

• All outstanding deposits greater than 72 hours should be immediately reviewed to determine why the funds remain outstanding.
• The party from which the funds are due should be contacted and documentation of this correspondence should be kept in the file.
• Any outstanding deposits greater than 30 days should be immediately funded from operating. The agent can then collect the funds from the proper party and reimburse the operating account.