Making payments electronically
This support note explains how to set up and process electronic payments in AccountRight and AcountEdge software versions.
For non-electronic payments see our support note Recording, tracking and depositing payments.
Also see our support note Paying customer refunds electronically.
Use these quick links to access the sections in this support note:
Electronic banking is a process by which your MYOB software creates a file that has an extension approved by your bank. The content of this file includes:
- Your bank account details.
- Your supplier's / employee's bank account details.
- The payment amount.
- Other ancillary information such as the payment date and the statement text.
The content of this file is usually imported into the software supplied to you by your bank. The bank software is then used to process the payments. Contact your bank for more information on how to send electronic payment files for processing.
How does electronic banking work?
Firstly, the journal postings of bank transactions are:
- Withdrawal - posts a credit to the Cheque account
- Deposit - posts a debit to the cheque account
When a payment is selected to be paid electronically, the payment is withdrawn (credit) from a Chequebook clearing account. This clearing account is known as the Linked Electronic Clearing Account. As more and more payments are designated to be paid electronically, the balance of the Linked Electronic Clearing Account decreases (has a credit balance).
Once the payments are processed using Prepare Electronic Payments, your software records a single withdrawal from your Cheque account which will correlate with your bank statement, and a deposit (debit) is posted to the Linked Electronic Clearing Account, offsetting the payment withdrawals. After processing all your electronic payments, the balance of the Linked Electronic Clearing Account should be zero.
Before you can prepare an electronic payment file, you need to complete the following electronic payment setup tasks:
Your bank account information is entered at the ledger account level. By doing this, your MYOB software allows you to have more than one chequebook account with electronic banking privileges.
- Go to the Accounts command centre and click Accounts List. The Accounts List window appears.
- Select a bank account (that is, an account with a Bank or Credit Card account type) that you want use for electronic payments.
- Click Edit. The Account Information window appears
- Click the Banking tab.
- Enter your bank account details in the fields. Copy this information exactly as it appears on your bank statement or chequebook. See our example below.
The bank account you choose (and by default the bank that you use) defines the type of output file created in the Electronic Payment process. The first two numbers are a bank code that defines the bank that you are using and creates the file to the format the particular bank uses.
Note: HSBC and Citibank account number formats If you are setting up an HSBC bank account for electronic payments, you need to enter your 12-digit internal account number in the Particulars field to allow your bank to process direct credit files. If you are setting up a Citibank bank account for electronic payments, you need to enter your internal account number in the Reference field to allow your bank to process direct credit files.
- Click OK to return to the Accounts List window.
- Repeat from step 2 for each bank account you want to make electronic payments from.
Note: To enter bank information in earlier versions of MYOB software go to the Setup menu, choose Company Information and click the Bank Info button.
An Electronic Clearing Account may already exist in your software, but if it doesn't this is how you set it up:
- Go to the Accounts command centre and click Accounts List.
- Click the Asset tab then click New.
- Select the Detail Account option.
- Select Bank as the Account Type.
- Assign an Account Number to the account that best suits your Accounts List.
- Name the account 'Electronic Clearing Account' or similar. See our example below.
- Click OK.
- Go to the Setup menu and choose Linked Accounts then choose Accounts & Banking Accounts. The Accounts & Banking Linked Accounts window appears.
- In the
Cheque Account for Electronic Payments
field, select the account you just created, for example Electronic Clearing Account.
Note: If an Electronic Clearing Account is already specified in the Cheque Account for Electronic Payments field, this means the account already exists in your software and has been correctly linked.
To enter a Supplier's banking details:
- Go to the Card File command centre and click Cards List.
- Click the Supplier tab.
- Click the zoom arrow next to the applicable supplier.
- Click the Payments Details tab.
- Enter the supplier's bank account details as shown in the following example:
- Click OK.
Employees' banking details
Similar steps are used to enter the Employee's banking details. Open the Employee's Card then click the Payment Details tab. Select Electronic from the Payment Method list, then enter the employee's banking details. Click OK to close their Card.
Processing electronic payments is a two step process:
Payments to be processed electronically are entered using the same steps as conventional payments. The only difference is that when using Pay Bills or Spend Money select the Group With Electronic Payments option (located at the top left corner of the transaction window).
Selecting this option will:
- withdraw the payment from the Linked Electronic Clearing Account, and
- list the transaction in the Prepare Electronic Payments window.
Processing the payments will:
- Withdraw the payment total from your Cheque account, and deposit it into the Linked Electronic Clearing Account.
- Create the file that is needed by the bank.
To process the payment:
- Go to the Banking command centre and click Prepare Electronic Payments. The Prepare Electronic Payments window appears.
- In the Pay From Account field, select the bank account from which you are paying. The banking details of the account you select are included in the file that you send to the bank for processing.
Note - Bank feeds users: If you are preparing an electronic payment to match a lump sum withdrawal you've received in a bank feed, then the account you select in the Pay from Account field must be the account associated with the bank feed. For more information on bank feeds, see the AccountRight Live bank feeds support site.
- [Optional] In the Select Payment by field you can select specific types of payments to process, such as Pay Bills transactions as shown in our example below, or you can select All Payment Types.
- In the Bank Processing Date field, enter the date you want the payment to be processed.
Note: The Bank Processing Date is the date upon which the bank will withdraw the money from your bank account and transfer it to the payees' bank account(s). If the payment is post dated, the software will display an alert informing you to check your bank's policy with regards to post dating electronic payments.
- Click in the select column next to those payments you want to process.The window below shows the Prepare Electronic Payments window with one payment selected for processing.
- Click Process. A window appears informing you that the payment will be recorded before the bank file is created.
- Click OK. The Save As window appears.
- Select the destination folder for the elctronic payment file and click Save. The payment information is saved as a file that you can send to your bank for processing.
Note: Multiple payment files If you are preparing multiple electronic payment files, make sure that you do not overwrite an unprocessed electronic payment file when saving.
- If you want to prepare another electronic payment file, repeat from step 2 above.
- Click Cancel to exit the Prepare Electronic Payments window.
When making a payment, the alert shown below is displayed if the software expects the payment to be processed electronically:
This indicates that the Pay From Account option is selected and the Linked Electronic Clearing Account is entered in the adjacent Account field.
This is easily overcome by clicking the Account field dropdown arrow and selecting your cheque account. Or, if the payment is to be paid electronically, select the Group With Electronic Payments option.
Note: If this alert is being displayed and the Pay From Account option is selected and your Cheque account is entered in the adjacent Account field, check that the electronic clearing account (and not your cheque account) is linked for electronic banking. Refer to steps 8 & 9 in Setting up a linked electronic banking account above.
Providing the electronic bank file has not been submitted to your bank for processing, you can recreate this file from your MYOB software. This also allows you to change the details of an electronic payment file, such as a different date or to modify which payments are included in the file.
Once you create a grouped electronic payment, the individual payments are "locked", so you'll need to delete the grouped electronic payment as follows:
- From any command centre, click Find Transactions.
- In the Find Transactions window, click the Accounts tab.
- In the Search by Account field, select your Electronic Clearing Account.
- In the Dated From and To fields, specify a date range in which the electronic payment file was first created.
- Find the electronic payment - this will be a debit and will generally have an "EP" number unless this was overwritten when the payment was recorded. See our example below.
- Click the transaction's zoom arrow to open it.
- Go to the Edit menu and choose Delete Electronic Payment Transaction. The payment will be deleted and the individual payment transactions will once again be listed on the Prepare Electronic Payments window.
- You can now delete or modify the individual payment transactions as required, then prepare the electronic payment again.