MYOB Pay Direct payments

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Experienced Cover User Victoria2017
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MYOB Pay Direct payments

Hello - I am new to the group and uncertain if this has been previously asked.

 

Seeking some advise on your online banking payment system (Paydirect).

 

1. I understand this functionality allows our clients to pay their invoices online and immediately close off their invoices? If this is correct - how would they go about closing off the correct invoices..(We issue monthly statements  vs individual invoices (which will have a multitude of different open invoices) In some instances the client will pay part invoice/ actual invoice / in excess of balance due. (and hence a credit invoice is created)  It my understand correct in that they will allocate the amount to any of their open invoices and essentially close their own invoices?  Please will you confirm.

 

2. How do we reconcile and do we need to establish a mercant faciltity. Am I correct in thinking the merchant bank will make a lump sum deposit into our savings account every day? If so, how do I reconcile this payment against closed invoices or individual transactions. - Our current process with credit cards is we record all individual payments into a credit card account - and therefore match them against the individual transaction activity supplied by our merchant bank. The matching currently works on last four digits of the customers credit card number.  Please advise if this will be a need in the future?

 

3. I was hoping to try and do a few test runs online but it looks as though a sample file is not available? Do you have any step by step instructions in terms of processing form both a client and internal perspective.

 

Regards,

 

 

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Ultimate Partner IanChait
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Re: MYOB Pay Direct payments

Hi @Victoria2017

 

You have asked a lot of very pertinent questions. In my situation, I just registered and tested the system with a dummy invoice, which I recommend you do as well.

 

PayDirect is a merchant facility, which is set up when you register. There is nothing additional you need to do in that regard.

 

The functionality only allows invoices to be paid individually, and for the exact amount. Invoices cannot be shortpaid or overpaid and payments cannot be combined. To make the payment, the customer logs into the online invoice . This is how the system identifies the invoice being paid. It then updates and closes the invoice, Crediting the Customer, and Debiting Undeposited Funds. You will receive an email advising that the invoice has been paid. 

 

The funds are usually transferred to your account then next day. But this will vary depending on bank cut off times. So the payment may come in 2 days later. There will be one bank deposit that will include multiple payements. The biggest downfall with the system is that you do not get a list of what makes up a particular deposit, and it can be very difficult to identify payments. Once MYOB fix this and provide a daily listing of deposits, the system will work well.

 

 In my situation, I just registered and tested the system with a dummy invoice, which I recommend you do as well.

 

 

 

 


Regards
Ian Chait CA
Certified Consultant Melbourne
P/M 0417 479 585
Email ian@myfc.com.au

Experienced Cover User Victoria2017
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Re: MYOB Pay Direct payments

 HI @IanChait

 

Thank you for the very thorough explanation.

 

Have a couple more questions if you don't mind.

 

1. I think it may all "fall apart" for us based on our processes (statements vs individual invoices) and not receiving full payments. Is there any work around to this this (aside from issuing individual invoices) and requesting exact payment?

 

2.  Will there still be a need to reconcile closed invoices against lump sum payment. Currently we have to do this to close the invoice and ensure all all payments are received. In this instance will I be identifying the numerous amounts residing in the unidentifed deposits account agains the lump sum and undertaking a journal entry (DR Bank Account CR Unidentified deposits). Would this not be an easy reconciliation if all payments are made on the same day? (and hopefully all cleared). It sounds from what you are saying that it can become a ardious task especially if all payments are in the same amount and hence may be inefficient?

 

Thanks re the recommendation of a dummy invoice. I am assuming that I have to do this in our "live" system, and create a payment (I will do it with a nominal amount). Thereafter I can delete all transactions. The ideal would be to do it in a test system but assume this is not possible.

 

Whilst a novice and hence I am pleased I found the board, it appears as though it may not currently be an efficient form of payment to offer to our clients (based on our processes - multiple invoices) and likewise it is only credit cards. If you don't mind - do you find the majority of your customers pay online or prefer EFT payment.

 

Thanks so much for your assistance!

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Ultimate Partner IanChait
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Re: MYOB Pay Direct payments

Hi @Victoria2017

 

1. I am not aware of any work around to receipt part or multiple invoices. So if this is important, then at present I can't see this working for you.

 

2. The process to use the Undeposited Funds Account  does indirectly reconcile the amount received. If you have never used it before, it is a process to combine multiple receipts into one deposit that appears on the bank statement. You open the screen Prepare Bank Deposit in the Banking window and you get a list of all amounts that have been recorded to it. You tick to include the ones making up the deposit and you record it. This creates the entry Dr Bank Cr Undeposited Funds and it is easy to reconcile.

 

You cannot process a dummy invoice without registering for PayDirect first. It might be better for you to engage a Certified Consultant to review your system and show you a demonstration. There might be other areas and functionality that you aren't using that could benefit the business.

 

 

 

 


Regards
Ian Chait CA
Certified Consultant Melbourne
P/M 0417 479 585
Email ian@myfc.com.au

Experienced Cover User Victoria2017
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Re: MYOB Pay Direct payments

Thanks @IanChait

 

Appreciate all your sound advice and assisance. Mery Christmas :-)

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