Paying Employees Electronically

Robert_

Hi

I think I may have used the wrong account setup for paying employees electronically

 

Today I processed the employee payments using electronic payments systems via ABA download however I entered the bank account details on the main cheque account.There were no error messages but have noticed the accounting entry for the cheque account is part processed ie no entry has been created in the electronic clearing account but only in the cheque account.

 

Should I have entered the bank acc details (BSB etc) in the Electronic Clearing Acc instead and can I assume the employees will get paid using the ABA download completed? 

 

Thankyou

 

 

 

Tracey_H

Hi @Robert_ 

 

Thanks for your post. When you record an electronic payment transaction there's two separate processes that occur:

 

1. the bank file is created to be uploaded to your bank. In Accounting>>Chart of accounts, the account that payments are to be made from should be set up for ABA bank files, including the bank details. In your case this would be the main cheque account.
2. a transaction is recorded which transfers the amounts from the electronic clearing account to the main cheque account. You can then match the electronic payment transaction with the bank feed transaction.

Looking at the Journal entries report the payroll and electronic payment transactions are posted like this-

 

Pay transaction the electronic clearing account is credited:

 

 

Electronic payment transaction the electronic clearing account is debited and the bank account credited:

 

 

When looking at reports or the Find transactions window only amounts posted to the filtered account will display. So if you're searching the bank account you'll only see what has been posted to the bank account, not the full transaction.

 

If you still have issues with this please feel free to send me screenshots and I'll be happy to assist further. Make sure sensitive information is removed from screenshots prior to posting on the Forum.

 

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.