Forum Discussion

Contributing User

3 years ago

Bank Feeds - clearing purchases payments

Hi,

Accountant here trying to get the recs process running for a business which has never completed this process previously. I am using bank feeds for the first time and trying to match off purchase payments. These payments originated from electronic transfers so I am surprised that these arent matched automatically already?

When I am in the bank feeds screen, all the payments are showing as separate individual line items (as per the bank statement) but when i try and find a match for the amount, there is nothing to match it off against. If i widen the search I can see the overall Electronic total of the full payment for all creditors but it doesnt allow me to apply the amount to this total.

What is the correct order of events which a client should follow once the payments have been sent off?

So they go to reconcile accounts - select the electronic clearing account and then hit the reconcile button assuming the balances all net off (i do have situations where these do not due to what looks like pre-payments). I tried this thinking that this will then create the balances into the cheque account but still no luck.

Is someone able to offer any help?

Thanks

Tracey_H
3 years ago
matt786

Hi Matt

Bank feeds is a tool to make reconciliations easier. How it works is, the bank transactions are brought into the file by the bank and matched with the AccountRight transactions. When an AccountRight transaction is matched and approved it is automatically ticked in the Reconcile accounts window. You would then go to the Reconcile accounts window and complete the reconciliation. Manually reconciling a transaction just means that you tick the AccountRight transaction instead of the software automatically ticking it.

When you record a Prepare electronic payment transaction two things happen. One is the bank file is created. The other is an electronic payment transaction is recorded, the electronic clearing account is debited and the bank account is credited the Total Payment Amount. You then match the electronic payment transaction with the bank feed transaction.

If your client is choosing to have the payments displayed as separate transactions on the bank statement you will need to hide and manually reconcile the electronic payment transaction. If you don't use electronic payments the payments will have to be manually transferred in internet banking.

Please let me know if you need further help.

LRBooks61
Ultimate Cover User
3 years ago
Hi

If your client is using electronic payments there are a few steps to take to transfer the payment to the main bank account from the electronic clearing account

For each 'batch'ents a prepare electronic payment needs to be done to create this entry to the myob bank account and generate an aba file which is usually uploaded to the bank

I would suggest that you have a deeper look into the electronic clearing account first and see which bank account the payment entry is being allocated to

The clearing account should be reconciled to zero to ensure all payments are processed

The little blue arrow that sits on the left hand side of the transaction will open it up to display the detail.

If the entries aren't ending up in the correct account there may be an issue with linked accounts

Hope this helps

Lisa
- matt786
  Contributing User
  3 years ago
  Thanks Lisa for the response.
  
  The client is using this to make payments there is no issues with creating the equivalent ABA file for NZ payments via BNZ.
  
  I have looked at the electronic payments account under account information and this looks correct as per instructions under the Guide
  2. Set up an electronic clearing account - MYOB AccountRight - MYOB Help Centre
  Both the profile and linked accounts is ok based on the above.
  
  When I look at the transaction under the Electronic clearing account they show them with a credit against the suppliers and an opposing debit agaisnt an Electronic Payment memo. Both the GL account entries go against 1-0190 which is the Electronic clearing account.
  - LRBooks61
    Ultimate Cover User
    3 years ago
    The payment should be going to the BNZ account. I think that may be the problem
    
    there has to debit from the electronic clearing account should produce the credit (withdrawal) from the bank account
    
    if you go into the payment from the electronic clearing account the bank it is coming from should be the BNZ account
    
    Lisa