Share your ideas for improving MYOB Essentials Accounting. Vote on ideas and discuss them with the MYOB product development team.

MYOB Essentials

Banking: Allocating multiple bank transfers to the one payroll transaction

1Posts

133Kudos

0Solutions

1 Post
User
Australia

Hi there,

I recently experienced an issue where my payroll was entered correctly, but the payroll officer made erroneous take home bank transfers to the staff.  As soon as she realised her mistake, she made a second transaction to those staff members that were underpaid to ensure that they received the correct take home amount. So, everything is correct - it's just that some staff were paid for one pay week in two transactions.

 

Unfortunately, the MYOB live Accounts does not allow you to allocate multiple bank transfers to the one payroll transaction.  I thought there must be a way, so I went onto online support to see if they could help.  As it turns out there is no way and the recommendation was to redo 2 payrolls to precisely match the two net amounts remitted.  I believe that this is a very poor solution.  The integrity of the payroll records should be maintained.  The payroll record is absolutely correct.  It records the hours worked, gross, tax, super and take home pay.  It's just that the take home pay was paid in 2 transactions.  I should not have to fabricate 2 payroll runs to match the two bank transfers.  I strongly believe that the accounting software should allow the allocation of multiple bank transfers to the one payroll transaction.

 

The software already allows for employees to receive pay "split" into seperate amounts within the Employee Pay setup section - but this is not the same scenario.

 

Additionally, some staff were overpaid.  In order to adjust for this, the payroll officer paid a lesser amount (by the amount of the overpayment from the previous week) in the following weeks pay to those overpaid staff members.  In this event, we have 2 payroll runs and two payments.  The individual transactions for the two weeks do not match, but they do reconcile precisely to the right payment having been remitted.

 

I think basically what needs to be able to happen is that any payment should be able to be allocated to any outstanding payroll transactions (or part there of).

 

Would be interested to hear developer thoughts on this.

 

"Allocating multiple bank transfers to the one payroll transaction"

Current Status: Open
Last Changed: October 2013

Thanks for the great idea Sinbad. I can understand how having the ability to match 2 bank feed transactions to one payroll could be a time saver as it saves you manually deleting the pay and processing a split pay to match the amounts as per our support note here. http://myobaustralia.custhelp.com/app/answers/detail/a_id/35721/kw/payroll For any users that would love to see this feature, please show your support by adding further votes and comments.

62 Comments
MYOB Moderator
36,462 Posts
MYOB Moderator

Hi @Mampsgirl

 

Welcome to the MYOB Community Forum, I hope you find it a wealth of knowledge. If you do have enquires don't hesitate to post them so the MYOB Community can assist.

 

Thank you for your feedback in regards to this idea. Along with commenting you can show your support for an idea on the MYOB Essentials Idea Exchange by voting. To vote for an idea you would select the + VOTE button to the left of the idea's name.

4 Posts
User

I am having this very problem too. Due to a misunderstanding, one employee was paid over 3 bank transfers totalling the amount due. I now have 3 bank transactions and a payroll transaction that I can't reconcile. It would seem like a simple process to match a bank transaction to a payroll amount.

 

Having to delete a payroll transaction and try  to recreate 3 seperate payruns to match the bank transactions is as unreasonable as asking the bank to amend the statement to combine 3 transactions.

 

 

This has been ongoing and passed to the development team repeatedly for nearly 2 years and still unchanged. It comes across like that is a bit of a throw away line.

MYOB Moderator
7,856 Posts
MYOB Moderator

Hi there @Magni

 

Please allow me to extend you a warm welcome to the Community Forum, I hope you find it a valuable resource. 

 

Thank you for your vote and feedback for this idea, it is definitely something our developers are considering, however unfortunately we don't have an estimated time available at this stage.

 

For your particular situation, I would suggest delete the original pay and record it as if it was a split payment. This way you only need to record 1 normal payslip, and still able to match the 3 bank feeds. For detailed instructions please follow this support note: Correcting a pay that should have been split.

 

Please feel free to post again on the forum at any time if you have more queries.

4 Posts
User

Thank you for the welcome CloverQ. I think after my post, I am feeling amused that you have passed it on to the development team.

 

Your suggestion will not work as I can only split a pay into two accounts. This pay was done in 3 transactions. Do you have another solution?

 

I also tried to follow @WayneL suggestion. I created a liability account called payroll clearing. However, on the payroll setup, I can only select a bank account. So I created a bank account called payroll clearing. Deleted the payrun. Reentered the payrun. Then to link the actual transactions from the savings account, I created a transfer for the total amount from the savings account to the payroll clearing account. My payroll transaction has now reconciled which is great. However, I have now discovered that I cannot allocate 3 transactions on the savings account to one transfer. It has to also be the exact amount. So I am back where I started.

 

Any other ways to turn 3 transactions on side into 1 transaction on the other?

 

 

MYOB Moderator
7,856 Posts
MYOB Moderator

Hi @Magni

 

You are right that using the split pay method can only split into two accounts not three, sorry my mistake.

 

The method you are using now is a great way of handling this situation, However instead of manually recording a transfer of the total amount from the savings account to the clearing account, I would suggest allocate those 3 bank transactions directly to the clearing account. By doing so Essentials will effectively create 3 Spend Money transactions to transfer the amounts across.

 

Please do let us know how you go.

4 Posts
User

Hi @CloverQ

 

I deleted the pay run, changed the bank account to the 'payroll clearing bank account', did the payrun.

 

From there I tried doing a transfer from savings to 'payroll clearing' but it will only match on exact amount.

I tried to transfer the money directly to the 'payroll clearing account' as you have suggested, but as I end up with 3 amounts, I cannot reconcile my payroll amount. Hence back to the original problem.

I then tried to do a transfer from payroll clearing account to payroll clearing account, which would record the total amount for reconciling the payroll and have no effect on the account balances, but MYOB does not allow a transfer from account to the same account.

I then did 3 transfers of money from savings to petty cash and one transfer from petty cash to payroll clearing account. That worked. Everything reconciled nicely.

I wasn't happy with the transactions going through the petty cash, so I deleted it all out and created 3 transfers from savings to the payroll clearing account. I then did a GL from payroll clearing account to same account in order to have the amount for the payroll to reconcile. This didn't work. So I deleted it all and went back the petty cash method, but this time the payroll wouldn't reconcile. 

 

Getting frustrated and spending an enourmous amount of time on this.

 

Right now I have 3 transfers from savings to payroll clearing account and the payroll amount on the payroll clearing account, but unreconciled.

MYOB Moderator
7,856 Posts
MYOB Moderator

Thank you very much for the update @Magni

 

Sorry about the frustration you've had reconciling this payroll transaction. I've done some further testing and was able to reconcile it by taking the following steps:

 

- Recording the payslip with the payroll clearing account set as the default account.

 

- Manually recorded 3 transfers from the savings account to the payroll clearing account via Banking > Transfer Funds. This shall update the balance of payroll clearing account to 0. 

 

- Banking > Bank Transactions > click on the Description field of the 3 bank transactions, and match them to the 3 transfers individually.

 

Usually you do not need to reconcile the clearing account as long as its balance is 0. However if you do wish to make the payroll transaction and the transfers to be reconciled, you can do so via Banking > Bank Transactions. 

 

Please try the method above and let us know how you go, we are happy to look into it further if there are more issues.

4 Posts
User

Hi @CloverQ

 

Thank you for your persistence in solving my problem. The first 3 steps you outlined is where I was at last time I wrote. The account balance is zero but not reconciled.

 

1. payslip with payroll clearing account set to default

2.create 3 transfers from savings to clearing account

3. match 3 transactions to the transfers

 

The bit I am missing is the reconciliation which is back the whole issue with MYOB. I can't reconcile one payroll with 3 bank transactions.

 

Cheers

MYOB Moderator
7,856 Posts
MYOB Moderator

Hi @Magni

 

Thank you very much for getting back to me. 

 

Essentially the purpose of this work around is that you won't need to match 3 bank transactions to 1 payroll transaction. The bank account will be reconciled once you have matched them to those 3 transfers.

 

When you mentioned 'The account balance is zero but not reconciled', I assume you are trying to reconcile the payroll clearing account. Since it's a made up clearing account, it doesn't necessarily need to be reconciled as long as its balance remains $0. 

 

If you do wish to reconcile the clearing account, you could do so via Banking > Bank Reconciliations (since it doesn't have bank feeds) > tick the payroll transaction and the 3 transfers together > click on Complete Reconciliation at the bottom. 

 

Hope this clarifies some more. Please do let me know if you have further queries. I'm more than happy to give you a call to discuss further if you wish.

4 Posts
Cover User

i am having this problem now. i am now going to have to go back and manipulate the payroll records!