About suspense accounts

Suppose your company receives a corporate tax refund, and you want to deposit the check, but you do not know how to correctly post the transaction. The correct approach is to deposit the check and credit it to a suspense account in the Cash Accounts range. The amount remains in the suspense account until you determine where to post the credit.

Suspense accounts provide a temporary location where you can post a transaction until you determine the proper accounts. Similar in function to a clearing account, suspense accounts allow transactions to pass through the account. When you post transactions to a suspense account, however, the transactions can remain for an extended time until you determine the proper accounts.

It is a good idea to use a suspense account in the account range to which you will eventually post the transactions. For example, you are not sure how to post a transaction related to equipment. You can use a suspense account in the Equipment range of ledger accounts.