Forum Discussion

mdonovan's avatar
mdonovan
Contributing User
4 years ago

Electronic clearing account - old transaction

Hi everyone

I have an old (2017) spend money transaction with no supplier name sitting in the electronic clearing account. How can I clear this?

 

 

Cheers

Mary

  • Hi mdonovan 


    There are two true ways to remove transactions from the Prepare Electronic Payments window:

    • Process the transaction i.e. tick the transaction and select Bank file. You'll need to have a supplier added to that transaction and the relevant banking information for that supplier. This would impact the bank account that the electronic payment transaction was recorded against. Although, once recorded you could record a journal entry to clear that impact on the bank account.

    • Reverse out or delete the transaction: this involves opening the transaction and selecting Edit>>Delete (or Reverse) transaction. Deleting may not be possible if the transaction is recorded in a previous financial year. Reversing out the transaction would generate a negative transaction in the Prepare Electronic Payments window which can be ticked and offset against the original transaction to record a 0.00 (or Void) transaction to the bank account. A supplier and their details would need to be entered to complete that process.

    In saying that, there is another process that can be used to clear out that Prepare Electronic Payments window and I've listed it below for you.

     

    1. Navigate to Accounts>>Accounts list.
    2. Select New.
    3. Give the account a number, name and set the account type to be Bank.
    4. Once that account has been created, navigate to Setup>>Linked Accounts>>Accounts & Banking.
    5. Update the Bank Account for Electronic Payments to be that newly created account.

    After completing the above steps, the Prepare Electronic Payments window would be cleared. 


    The above process does work as the system will look at all transactions in the electronic clearing account to see if they have been paid. As the new account would have no transactions in it the window would be blank.

  • Hi mdonovan 


    There are two true ways to remove transactions from the Prepare Electronic Payments window:

    • Process the transaction i.e. tick the transaction and select Bank file. You'll need to have a supplier added to that transaction and the relevant banking information for that supplier. This would impact the bank account that the electronic payment transaction was recorded against. Although, once recorded you could record a journal entry to clear that impact on the bank account.

    • Reverse out or delete the transaction: this involves opening the transaction and selecting Edit>>Delete (or Reverse) transaction. Deleting may not be possible if the transaction is recorded in a previous financial year. Reversing out the transaction would generate a negative transaction in the Prepare Electronic Payments window which can be ticked and offset against the original transaction to record a 0.00 (or Void) transaction to the bank account. A supplier and their details would need to be entered to complete that process.

    In saying that, there is another process that can be used to clear out that Prepare Electronic Payments window and I've listed it below for you.

     

    1. Navigate to Accounts>>Accounts list.
    2. Select New.
    3. Give the account a number, name and set the account type to be Bank.
    4. Once that account has been created, navigate to Setup>>Linked Accounts>>Accounts & Banking.
    5. Update the Bank Account for Electronic Payments to be that newly created account.

    After completing the above steps, the Prepare Electronic Payments window would be cleared. 


    The above process does work as the system will look at all transactions in the electronic clearing account to see if they have been paid. As the new account would have no transactions in it the window would be blank.

    • Hi Steven_M 

      Jusy a quick question following your awesome soutions on the electronic clearing acount issues that we all seem to be having :) - If I was to choose option 1 and "process the transaction i.e. tick the transaction and select Bank file. This would impact the bank account that the electronic payment transaction was recorded against. Although, once recorded you could record a journal entry to clear that impact on the bank account"

       

      What would the journal entry be to clear the impact? I cant figure that bit out :) 

      Many Thanks

      • Steven_M's avatar
        Steven_M
        Former Staff

        Hi KayElevate 


        The journal entry I would be doing would be a debit to the bank account used and then recording the other side to a miscellaneous or accounting clearing account - best speak to your accounting advisor about which account would be the best for that.


        Should be pointed out, if you go with the processing method we would have a withdrawal, from the electronic payment clearing that window, and the deposit, from the journal entry, in the bank account. When you next reconcile that account, tick these transactions and as these should be the same amount they would cancel each other out thus have no impact on the account.