Payroll processed from wrong bank how do I reconcile the bank feed

Question

recently opened another bank account different BANK to the one normally paying payroll.  yesterday paid funds for staff from the new bank but hadnt changed the payroll account on MYOB so shows as coming out of the original account and now cant match the bank feed.

Suggestion and help please

Anne

Tracey_H · Answer

Hi @Anne1

The accounts in AccountRight are general ledger accounts, they are how a business keeps track of its financial transactions and prepares financial reports. Transferring amounts between general ledger bank accounts only impacts how the amounts are reported in the software.

Transfer money transactions is a common method of recording transfers between actual bank accounts, for example, when you pay the company credit card you can record a transfer money to reflect that in the software.

Please let me know if you need further help, I'm happy to help.

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

Anne1 · Answer

Sorry to be a pest. will this work for two different banks - ie - ANZ and CBA ?

Tracey_H · Answer

Hi @Anne1

No need to apologise, I'm happy to go through it with you.

When you process a pay run a transaction journal is posted that allocates the amounts to the applicable AccountRight accounts. This is an example of how the transaction journal looks, only the net amount is allocated to the bank account:

The hours and amounts are also allocated to payroll categories and it's the payroll categories that appear in the payroll reports. STP filters the amounts allocated to the payroll categories according to the ATO reporting categories assigned to the payroll categories.

In the situation where an incorrect bank account has been selected when processing the pay run, the hours and amounts are not affected as they've been allocated to the payroll categories and reported according to the ATO reporting categories. So STP won't be impacted.

The only thing that is incorrect is the bank account, so the net amount appears as a withdrawal in the incorrect account instead of the bank account the money was actually withdrawn from.

Recording a transfer money transaction just moves the net amount from the incorrect bank account to the correct one. In the Bank feeds window you'll need a transfer money transaction for each bank feed transaction. So if the wages appear as individual withdrawals in the Bank feeds window you will need to record individual transfer money transactions.

The quickest way to do this is in the Bank feeds window click on New>>Transfer money. The From account is prefilled with the correct bank account and select the incorrect bank account in the To field. If you go into Bank register or Reconcile accounts and select the incorrect bank account you should see matching withdrawal and deposit transactions which clear each other out.

Hope that clarifies it for you, please let me know if you need further help.

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