Forum Discussion

matt786's avatar
matt786
Contributing User
2 years ago
Solved

Bank Feeds - clearing purchases payments

Hi,   Accountant here trying to get the recs process running for a business which has never completed this process previously. I am using bank feeds for the first time and trying to match off purch...
  • Tracey_H's avatar
    Tracey_H
    2 years ago

    matt786 

     

    Hi Matt

     

    Bank feeds is a tool to make reconciliations easier. How it works is, the bank transactions are brought into the file by the bank and matched with the AccountRight transactions. When an AccountRight transaction is matched and approved it is automatically ticked in the Reconcile accounts window. You would then go to the Reconcile accounts window and complete the reconciliation. Manually reconciling a transaction just means that you tick the AccountRight transaction instead of the software automatically ticking it. 

     

    When you record a Prepare electronic payment transaction two things happen. One is the bank file is created. The other is an electronic payment transaction is recorded, the electronic clearing account is debited and the bank account is credited the Total Payment Amount. You then match the electronic payment transaction with the bank feed transaction.

     

    If your client is choosing to have the payments displayed as separate transactions on the bank statement you will need to hide and manually reconcile the electronic payment transaction. If you don't use electronic payments the payments will have to be manually transferred in internet banking.

     

    Please let me know if you need further help.

matt786's avatar
matt786
Contributing User

Thanks Lisa for the response.

 

I have looked at the screen shots you have sent and they look consistent. 

 

The first screen shot i do see both side of the entries when looking at the reconcile accounts for the elec pymt account.

The 2nd screen shot your showing "Spend Money" but my is showing as a "Pay Bills" screen where both are showing as under the Pay from account being Electronic clearing account.

 

As for the third screen when i hit the "Prepare Electronic Payments" button it shows it coming up with the correct 1-0100 Cheque Account which represents the BNZ current account (this i have asked the client to confirm that this isnt changed on further processing)

Tracey_H's avatar
Tracey_H
Former Staff
2 years ago

Hi matt786 

 

I just wanted to jump in and add to the great assistance Lisa ( LRBooks61 ) has been giving you. You mention in your first post, all the payments are showing as separate individual line items (as per the bank statement) and If i widen the search I can see the overall Electronic total of the full payment for all creditors. If I understand that correctly you've got one lump sum payment transaction in AccountRight but individual payments on the bank statement.

 

That sounds like your client isn't uploading the bank file to make the bulk payment, but is transferring the payments manually. If the bank file was uploaded to the bank you'd see one lump sum withdrawal on the bank statement which could be matched with the AccountRight transaction.

 

In this situation you'd need to hide the bank feeds transactions by right clicking on the transaction and selecting hide. Then manually reconcile the AccountRight transaction in the Reconcile accounts window by ticking it.

 

Going forward, the options would be to upload the bank file so there's one bulk payment. Or not using the electronic payments function, when processing Pay bills transactions untick the Electronic payment option and select the bank account as the Pay from account.

Please let me know if I've completely misunderstood your issue or you need further help.

  • matt786's avatar
    matt786
    Contributing User
    2 years ago

    Thanks Tracey that is very useful information.

     

    I think my client preferred to see the individual transations within the bank statement for audit purposes (i believe there is an option within BNZ to display these as separate transactions)

     

    If I go with your suggestion of hiding the bank feeds transactions and manually reconciling the AccountRight transaction in the Reconcile accounts window, will this allow me to correctly reconcile the bank account on the bank feeds screen or is the Reconcile accounts window the main underlying place where it needs to be done? Sorry I have yet to journal a correction balance to tie up the bank account.

     

    The going forward option of "not using the electronic payments function, when processing Pay bills transactions untick the Electronic payment option and select the bank account as the Pay from account." Is this still possible to create an electronic payment for this? I just tried this option on a test file and when i select "Prepare Electronic payments" there is no option to select the customer and corresponding amount? I assume this is only useful for cheque payments? If this isn't a viable option I think the one above should be ok.

     

    Again thanks for your help

    Cheers

    Matt

     

     

     

    • Tracey_H's avatar
      Tracey_H
      Former Staff
      2 years ago

      matt786 

       

      Hi Matt

       

      Bank feeds is a tool to make reconciliations easier. How it works is, the bank transactions are brought into the file by the bank and matched with the AccountRight transactions. When an AccountRight transaction is matched and approved it is automatically ticked in the Reconcile accounts window. You would then go to the Reconcile accounts window and complete the reconciliation. Manually reconciling a transaction just means that you tick the AccountRight transaction instead of the software automatically ticking it. 

       

      When you record a Prepare electronic payment transaction two things happen. One is the bank file is created. The other is an electronic payment transaction is recorded, the electronic clearing account is debited and the bank account is credited the Total Payment Amount. You then match the electronic payment transaction with the bank feed transaction.

       

      If your client is choosing to have the payments displayed as separate transactions on the bank statement you will need to hide and manually reconcile the electronic payment transaction. If you don't use electronic payments the payments will have to be manually transferred in internet banking.

       

      Please let me know if you need further help.

      • matt786's avatar
        matt786
        Contributing User
        2 years ago

        Hi Tracey and Lisa,

         

        Huge thanks in helping solve and understand the issue, much appreciated.

         

        Cheers

        Matt