Electronic Clearing Account

Question

Last year, we created a manual payrun for an employee missed off the main payroll run. We then made the payment manually (payment online).

Upon checking financials, I noted an amount oustanding in our Electronic Clearing Account equal to this amount.

I've tried creating a 'Spend Money' transaction on the date of the payment (account sent to Wages and Salary) and matched the payment from my bank account to this new Spend Money Transaction.

However, this still doesn't clear the Electronic Clearing Account Balance.

I can't reverse this payrun item, and I also can't use General Ledger to clear the balance either.

Would appreciate input on how to rectify this issue.

tracey_h · Answer

Hi&nbsp;VolsteadRepeal&nbsp;
&nbsp;
Thanks for your post. You will need to process the electronic payment for that pay transaction only in Prepare electronic payments. You don't need to upload the ABA file to your bank, but, processing the electronic payment will move the amount from the electronic clearing account to the bank account.
&nbsp;
When a pay run is recorded the gross amount is allocated to the Wages &amp; Salaries expense account. If you record a Spend money transaction allocating the net amount to the&nbsp;Wages &amp; Salaries expense account you inflate the wages expense resulting in incorrect financial reports. As such, you will need to unmatch and delete the Spend money transaction.
&nbsp;
Please let me know if you need further help.
&nbsp;
If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

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Electronic Clearing Account

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