When recording cash receipts, use the 'Cash On Hand account.  

What you're seeing is what happens when you use a single bank account - the deposit going out and back into the same account.  The net of the three transactions should equal the deposit.

The deposit function in Sage 50 is meant to move multiple amounts (cash and cheques) from the cash on hand / cash drawer account into the bank, so it shows just one deposit amount in the bank account.

It makes reconciliation easier, especially for deposits of multiple cheque amounts, and if you have actual cash to deposit, the bank deposit module will add up, record, and print the slip for those, too.

I've found it best to 'save' the bank deposit, then post it when I get back from the bank.  If there's an error in recording a cheque you will have an opportunity to fix it before posting the deposit.

I hope that helps, please post back, and mark any responses that you find helpful as answering your question.

Thank you for explaining how a deposit works, but that does not answer my question, as this was not a cash receipt.  The cheque receipt deposited the cheq to 1060 cheqing account. Then the Bank deposit slip also deposited the same cheque into the 1060 cheqing account as well. I need to reverse one of them, but when i void the receipt it shows the customer's invoice as not paid. I can not reverse the deposit slip. So I'm not sure how to correct this error.   in the future i will created a account 'cheqs to be deposited' so that this doesn't happen but for this deposit I'm baffled as to how to correct this and have all my accounts correct.

this sage KB 10126 in this posting should do that

http://sagecity.na.sage.com/support_communities/sage_50_accounting_ca/f/161/p/74137/218319.aspx#218319

this sage KB 10126 in this posting should do that

http://sagecity.na.sage.com/support_communities/sage_50_accounting_ca/f/161/p/74137/218319.aspx#218319