Forum Discussion

CathVSA's avatar
CathVSA
Experienced User
5 years ago
Solved

Undeposited Funds/Clearing Payroll entries

I found another this thread that seems to be relevant to my problem, although that was answered by Steven back in August and doesn't quite answer my problem.

I am using version 2019.4.

We paid an employee cash for one pay period, instead of by the usual method of eft. I ticked the "cash" box in the payroll system which allocated the payment to Undeposited Funds. I then processed that with "prepare bank deposit" and it hit the bank account as expected.
That transaction however doesn't seem to be able to be cleared from the Undeposited Funds screen. I have tried reversing the transaction and re-entering it and it just leaves us with more entries that won't clear, even after processing the bank deposit.
Steven's reply in August said that you shouldn't process payroll transactions via undeposited funds, clearly I wish I saw that before doing it, but given that it is an allowed option, what is the issue and what can I do to clear the transaction that has been processed from the "prepare bank deposit" screen?
Thanks! Cheers Cath

  • Komal_S's avatar
    Komal_S
    5 years ago

    Hi CathVSA 


    Yes, creating a new undeposited fund accounts and linking it to Setup--> Linked Accounts--> Accounts and Banking Accounts--> Bank account for undeposited funds will clear those transactions from Prepare Bank Deposit. 

     

    You might not need to inactivate the previous linked account as it would not link to preparing bank deposits anymore and you can search by that old account if you ever want to know what transactions were posted against it. But then again, it's totally up to you if you want to inactivate the account for some other reasons.

9 Replies

Sort By
Replies have been turned off for this discussion
  • Komal_S's avatar
    Komal_S
    MYOB Moderator
    5 years ago

    Hi CathVSA 


    It seems that the linked accounts in your company file are not setup properly. Can you please confirm if the bank account for cash payments (Setup--> Linked Accounts--> Payroll Accounts--> Bank Account for Cash Payments) is same as the bank account for undeposited funds (Setup--> Accounts & Banking Accounts--> Bank account for undeposited funds) . If both the accounts are same and are setup as main cheque account, then preparing the bank deposit would not clear anything from that window. The linked account for undeposited funds should never be the main bank account. 

     

    The simplest way to resolve this would be changing the linked accounts for undeposited funds as that would clear any transactions under the "Prepare Bank Deposit" screen. However, do take a backup of your file before doing that so you can revert back in case anything goes wrong. 

    • CathVSA's avatar
      CathVSA
      Experienced User
      5 years ago

      Hi Komal, thank you for your reply.

      The bank account for cash payments is the same as the bank account for undeposited funds - both are "undeposited funds" - not the main bank account.

      I have attached screenshots in case that doesn't make sense.

      We use "undeposited funds" extensively and the transactions always clear out correctly so it works for our normal operations.  The only time it hasn't worked it for the one-off payroll transaction that won't clear out.

       

       

      • Komal_S's avatar
        Komal_S
        MYOB Moderator
        5 years ago

        Hi CathVSA 

         

        The linked account for undeposited funds is a clearing account that is just used to hold money till it is deposited into the actual bank account. In your case, if you are also specifying it as the bank account for cash payments, then ideally it should be withdrawing the money out of that account; but since it's linked for undeposited funds, the money is being deposited as well. This situation causes a conflict and the first thing you need to change is the Bank account for cash payments. It should be set to the actual bank account from which the payments are made instead of linked undeposited funds.


        Once that is done, you can either delete that payroll transaction and re-enter it correctly; or change the linked account for undeposited funds to let's say another clearing account, which would clear out everything from "Prepare Bank Deposit" screen.


        If you have any concerns about changing the linked accounts, I would recommend having a chat with your accounting advisor.