Payroll using Electronic Payments Method - Bank Feed to Payroll Clearing Account

[kazz06]

Hi All,

The pay run is using the Electronic Clearing Account. Payments are made by Electronic Payments. The actual bank feeds for the wages payment is going to Payroll Clearing Account. Therefore, the Electronic Clearing Account balances but the payroll clearing account is out of balance. How do I fix this?  Thank you. 

[Tracey_H]

Hi @kazz06 

Thanks for your post. So that I can assist can you please clarify the transaction that is being allocated to the Payroll Clearing account. If it is the Prepare Electronic Payments transaction what is the Pay From Account in that window? It should be the bank account the pays are withdrawn from. Generally speaking, if the Payroll Clearing account has been selected you could record a Transfer Money or General Journal transaction to move those payments to the bank account.

If you can provide more information, or screenshots, I'll be happy to assist you further.

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

[kazz06]

Hi Tracey_H

First time user and I had a little trouble working out screenshots without providing identities. Hope these attachments make sense.  

[Tracey_H]

Hi @kazz06 

Thanks for those screenshots. Can you please send me screenshots of the actual transactions? If you run those reports again you can click on a transaction to open it. I really need to see a transaction that has gone to the payroll clearing account to work out how it was allocated to that account. In the electronic clearing account report can you open and send me transaction EP000152.

[kazz06]

Hi Tracey

Attached is what you are after. Hope this makes sense as I cannot work it out as I have not seen processing done this way before.

Thanks

Karen. 

[Tracey_H · Accepted solution]

Hi @kazz06 

That is what I was after and it does explain what is causing your problem. It looks like the payments are being recorded twice:

1. as a Prepare Electronic Payments transaction, this is correct. When pays are processed the Pay from Account is the Electronic clearing account, you then process the electronic payment which transfers the payment from the electronic clearing account to the bank account. The electronic clearing account is cleared and the bank account has a withdrawal to match with the bank transaction.
2. as a Spend Money transaction, this is records a withdrawal from the bank account which creates a duplicate. It also allocates the payments to the payroll clearing account where they are sitting uncleared.

If you look at the Pay From Account in both of those screenshots it's the same bank account so I suspect that bank account will be out of balance too.

You'll need to confirm that those Spend Money transactions are duplicates of the payroll transactions. if they are then delete them. 

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.

[kazz06]

Hi Tracey

Thank you for this. I wasnt picking up the transaction to payroll clearing account as "Spend Money". I appreciate all your help.