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Payroll and Electronic Clearing Account

Keay
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Payroll and Electronic Clearing Account

Due to the recent update (for MYOB Essentials Accounting + payroll) I was not aware that when you create pay run, it defaults to Electronic Clearing Account. I don't want to link my Bank details to MYOB so I have an automatic pay set up from my bank account directly. I'm trying to reconcile my everyday banking account and couldn't because all payroll was defaulted to Electronic Clearing Account since the update. 

 

Could you please advise how to change the previous payroll runs from Electronic Clearing Account to my nominated banking account. 

 

I went to 'Prepare electronic payments' and if I were to reserve the pay, it gave me a warning about the reversal will affect my STP report. Is there other way? 

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Dogzbreath
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Re: Payroll and Electronic Clearing Account

Same issue here with the electronic clearing account - can find nothing about it in the migration documentation - and now cannot reconcile my bank accounts. Can't even find a way to few the general ledger details to see how payroll transactions are constructed - all you get now is another view of a payslip when you enter via reporting. This is a FAIL for the upgrade.

Dogzbreath
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Re: Payroll and Electronic Clearing Account

Hi Keay - after digging around and reading other posts I realised that MYOB changed the default bank account to Electronic Clearing Account during the upgrade. Perhaps there was a note in the migration documentation - have not found it myself as yet, but either way it should not have been changed by MYOB in such a cavalier way.

The solution I employed to rectify this was to:

 

  1. change the default bank account through "Accounting > Managed Linked Accounts" - reset it back to your default bank account for payroll.

  2. Raise a general journal for each impacted pay run to journal between payment values between the electronic and default bank accounts.

Somehow I don't think MYOB will be able to offer any other solution than the above.

Steven_M
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Re: Payroll and Electronic Clearing Account

Hi @Keay 

 

Similar to the Original MYOB Essentials, the Newer MYOB Essentials platform allows users to pay their employees electronically via ABA/bank file. This is an optional feature of the product. If you do decide that you are not wishing to use that functionality i.e. you wish to manually process their pay through Internet Banking or another arrangement, go navigate to the employee's record, select Payment Details and update the Payment Method to be Cash or Cheque.

 

If you have processed an employee's pay and you are not wishing to pay them electronically, you do have two options:

  • Reverse out the pay, update the payment method on the employee's record, and then re-process pay. Help Article: Changing or deleting a pay would be able to assist with that process.

  • Enter fake banking information for the employee into the Payment Details. You may also need to enter fake information into the necessary bank account as well. Once that information has been entered, you would tick the employee's pay off and then generate the Bank file. What this will do is push the transactions to the desired bank account for payment and also generate an ABA/Bank file - don't upload this file to a Bank.

In theory, the workaround that @Dogzbreath has also provided would work. However, I would be setting that Bank Account for Electronic Payments to be a newly created bank account. By doing this it would ensure that the Prepare electronic payment window remains blank.

Kind regards,
Steven

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Keay
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Re: Payroll and Electronic Clearing Account

Thank you @Dogzbreath  and @Steven_M - I really appreciate your reply.

 

I've changed my payroll default settings by going to Payroll > selecting each employee name > payment details> payment method from 'Electronic Clearing Account' to 'cheque', then linked 'cheque' payments to my nominated everyday banking account  (under Accounting > Linked accounts> Payroll > change drop down list for 'bank account for cheque payments' to nominated banking account) . I've changed this before posting my enquiry. I had initial problem paying super with the new MYOB update and through other community posts - I've read that the payroll was defaulted to Electronic Clearing Account and played around changing this way. 

 

I've run another payroll today and it seems working.

 

@Dogzbreath I think your suggestion about creating general journal is great and simple.

 

I'm relieved I don't need to reverse any previous payroll runs Smiley Happy 

 

 

 

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