Reconciling Electronic Clearing Account with a payroll error

[dbarkho]

Hi MYOB community

I was hoping to get some guidance regarding the reconcilation of our electronic clearing account, from what I have read on the forums the electronic clearing accounts debits and credits should cancel each other out thus leaving the account with a balance of zero? 

Every transcation that exist in this account through the reconcilation view seems to follow this behaviour, however there is an issue with a transcation associated with our first payrun on MYOB. 

It seems that this payrun was marked as 'electronic payment', however there is no bank file associated with this (we hadn't set this up yet). As such the payrun was paid directly from the bank account (it also seems that the amount paid from bank account was incorrect - $1350.50 instead of $1378.50.

The amount reported to the ATO is in-line with the amounts recorded in MYOB. However, the amount paid to employees that week was inaccurate. How would I go about fixing this? We have already finalised this period for STP/ATO (the 2021-2022 financial year is still open though) 

I am not sure if I should reverse the pay and reinput it without "electronic payment" selected, as this will not solve the issue of underpayment of amount on MYOB vs actual bank transcation. 

I do hope we have been using the electronic clearing account correctly (for everything except this first mistake payrun):

Any advice/guidance would be greatly appreciated!

[dbarkho]

I’ve tried following other posts on the community page which recommended to:

- reverse the pay

- changing the account from "Electronic Clearing" over to our "ANZ bank account" under the Payroll Tab in "Linked Accouts (Accounting Settings)

- splitting the pay to two accounts for the affected employee (the difference is the amount overpaid)

- and then redoing the pay. 

However, when I did this twice it seems it did not seem to split the pay run into two accounts for the employee - the payrun is still $28 higher than the bank transaction despite me splitting $28 into the employees second bank account (fake details) it still generated as one payments for each employee (instead of one for employee 1 and 2 split payments for employee 2)

Should I not be settings the account payroll account to ANZ? Rather keeping it to the electronic clearing account? (When original payrun was made it was made with electronic clearing account but we didn't have bank files setup yet (it didn't generate one, was paid straight from bank instead but as mentioned was $28 short for one employee in bank transaction yet correct on MYOB payslip - cannot match to bank transaction due to discrepancy) 

I managed to reconcile the clearing account though; just can't get the split payment to work so I can match the transaction and payment in the bank feeds. 

[dbarkho]

Hello, 

I am having trouble matching a payroll payment to a bank transaction as the bank transaction seems to be underpaid (employee #2 was underpaid by $28.00)

This occurred back in April 2022 on the "Electronic Clearing Account" - we did not use this account properly when payment was made as we hadn't set up bank files; it was just set to that by default (it was paid straight from ANZ bank account - no bank file used) - as such, I've gone into "Linked Account' settings and changed it from "Electronic Clearing Account' to "ANZ Bank account" under "Payroll" tab to fix this transaction (going off what other posts have said)

I reversed the original pay and then went into the settings of the affected employee and split the payment destinations between two accounts (the main account is set as $553 ($28.00 less what was paid) and the second account is the remaining amount ($28.00).

However, when I regenerate the pay run with these details and go into the Bank Transactions page to match the bank transaction ($1,350.50) to the pay run, it seems the pay run is not showing two transactions for the affected employee (one for each of the split payments), rather just two full transactions for each employee in the reprocessed pay run. As such, when I match it to the pay run ($1,378.50) it is still short by $28.00 

I don't know what I'm doing wrong. I've read so many forum posts and tried putting this pay through so many times. The fact remains, the pay run isn't splitting into two payments which I need in order for me to match the pay run and subsequently make an additional payment on the next pay run (which will also be split) to be matched to the $28.00 overpayment

[Tracey_H]

Hi @dbarkho 

To clarify how this process works:

• you've got the MYOB Essentials accounts, these are the accounts MYOB Essentials transactions are posted to 
• in the employee card>>Payment details you've the employee's bank account details, these are used when creating the bank file and tell the bank which accounts to deposit funds to

When you record a pay transaction the journal posted will look something like this:

The net amount is posted to the bank account or electronic clearing account, depending on the Payment method selected. The employee's bank account details are not posted to in the pay run transaction.

This means that if you need two separate MYOB Essentials transactions you need to process two separate pay runs. The net amount for each pay run should match the amount withdrawn from the bank.

Please let me know how you go.

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

[dbarkho]

Hi @Tracey_H 

I'm trying my best to understand your explanation in line with what I've read in other posts. 

The MYOB pay run back in April was for $1,378.50 NET; the amount actually paid from the ANZ bank account was only $1350.50.

(Employee 1# was paid $553 NET instead of $581 NET - $28.00 less/underpayment)

(Employee 2# was paid $797.50 NET - no errors here) 

Due to this $28.00 discrepancy between the: net-pay for employee 1# stated in MYOB and the amount actually paid from ANZ, I am unable to match it to the payrun to the bank transcation in the bank feeds of MYOB.

Other posts have indicated moderators advising the following: 

• step 1: reverse the original payrun 
• step 2: reprocess the original payrun with split payment changes = go into employee bank account details, split the payment into two accounts - first transcation is the actual amount paid ($553) and the second account is the underpayment ($28.00)
• step 3: match the SEPERATE/SPLIT transcations (match employee 1#'s first split payment of $553 & employee 2#'s full payment of $797.50 to the payrun)
• step 4: process a new payrun (of $28 only) and match employee 1#'s second split payment  ($28.00) to it. 

However, when following the above process (splitting the payment to two accounts) it doesn't seem to create "two transcations" as others users/moderators have advised:

instead of: 

• employee 1: - transcation 1 ($553.00), transcation 2 ($28.00)
• employee 2: one transcation $797.50 

it creates; 

• employee 1: - one transcation $581 
• employee 2: one transcation $797.50 

From what you have said would the above process be incorrect? 

---

@Tracey_H wrote:

The net amount is posted to the bank account or electronic clearing account, depending on the Payment method selected. The employee's bank account details are not posted to in the pay run transaction.

This means that if you need two separate MYOB Essentials transactions you need to process two separate pay runs. The net amount for each pay run should match the amount withdrawn from the bank.

---

Are you saying I should do the following;

• step 1: reprocess the original payrun to reflect the actual amount paid from bank back in April 2022 ($1350.50)
• step 2: match the new, reprocessed original payrun to the original bank transcation (reprocessed payrun of $1,350.50 to $1350.50 bank transcation) 
• step 3: process a new, recent payrun, of $28.00 in the same year (2021-2022 financial year) to reflect the underpayment 
• step 4: match the new payrun to a new bank transcation that will appear after we pay the payrun via bank file

Assuming the system runs of a YTD figures, wouldn't this adjustment cause STP errors? As the 29/04/2022 payrun is now worth $28.00 less, and suddenly there is a new payrun entered for an already finalised financial year (tax-returns already completed?)

If the above steps are correct could you please let me know, that way I can adjust if necessary and if correct, proceed and fix the payroll error. 

[Tracey_H · Accepted solution]

Hi @dbarkho 

It's great to hear that you're using the Forum to find answers to your issues. Just make sure when you read a post that it matches the product you are using, processes are different in the newer MYOB Essentials platform than they were in the original MYOB Essentials platform.

The posts that I have found which advise to split the pay between two employee bank accounts relate to the original platform. This did record two pay transactions.

Due to the change in the electronic payment process in the newer platform, splitting the pay between two employee bank accounts doesn't record two pay transactions. The split between the two bank accounts happens in the bank file.

So the correct process is:

• step 1: reprocess the original payrun to reflect the actual amount paid from bank back in April 2022 ($1350.50)
• step 2: match the new, reprocessed original payrun to the original bank transaction (reprocessed payrun of $1,350.50 to $1350.50 bank transaction) 
• step 3: process a new, recent payrun, of $28.00 in the same year (2021-2022 financial year) to reflect the underpayment 
• step 4: match the new payrun to a new bank transaction that will appear after we pay the payrun via bank file

If you process the second payrun in the same financial year the gross YTD amounts shouldn't change, you're just splitting the amounts over two transactions instead of one.

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.