Consolidation of Online Banking Payroll transactions on Bank Reconciliation

  • 3
  • Question
  • Updated 4 years ago
  • Answered

Hi,

Currently the Online Banking transactions for paycheques show at an individual employee level in the Bank Reconciliation function.

On the actual bank statement, this shows as one lump amount.

Is it possible to get the transactions to be consolidated?

At the minute, I'm not able to hand over bank reconciliation as they can see what individual employees are paid.

It would be good if the same applied to Supplier payments that are processed via Online Banking - would make it easier to reconcile and be a true reflection of what's occurred.

This is what I'm used to in other software I have utilised.

Thanks in advance.

Susan Murray.

Photo of Susan

Susan

  • 492 Points 250 badge 2x thumb

Posted 5 years ago

  • 3
Photo of Charles van Rotterdam

Charles van Rotterdam

  • 9,734 Points 5k badge 2x thumb
Hi Sue, if you are paying via ABA file then you should be running your payroll through the "bank (online) suspense account and then transferring total from operating account to there. If you don't use ABA file then create a Payroll Clearing account (Bank) and again transfer total amount from Operating to the clearing account. That way the Payroll clearing account will return to zero each time and the Operating account will show the total payroll amount which is then reflected on the Bank Statement 
Photo of John Graetz

John Graetz

  • 23,728 Points 20k badge 2x thumb
Hi Sue.  Apart from the situations which you have referred to, there are other occasions on which another "type" of bank account is helpful, such as instances where a direct credit might cover the payment for more than one Accounts Receivables customer account.  I have set up a Bank Account called Internet and Internal Transfers, which is effectively a suspense account, but is used like a bank account.  For online transactions, this account is enabled with the same bank details as the account to which the transactions will eventually be transacted with.  So for Payroll, nominate this "Internet Transfers" account as the bank to use.  Individual net staff transactions will appear in this account instead of the main bank account.  Then simply create a cheque from the main account with the payee being "Payroll" and allocate the cost to the "Internet and Internal Transfers" bank account.  The account will end up with a zero balance at that point, so no reconciliation is required.  Then when you go to reconcile the real bank account, you will only have one entry to reconcile which will be the same as the one in your bank account.  The same approach will work for online bank payments that you might make in bulk.  This makes life very simple.  On various occasions I do receive payments which cover more than one customer.  To cater for this, for each payment that I record, I again use the "Internet and Internal Transfers" account to receive the values.  The initial receipt into the real Bank Account for the bulk amount is coded to "Internet and Internal Transfers" and is therefore cleared when processing the individual components using the "Internet and Internal Transfers" account.  This system works far better than having to use traditional Asset or Liability Suspense accounts. 
Photo of Maria

Maria

  • 148 Points 100 badge 2x thumb
Why do all these processes have to be so convoluted? 
Photo of Kay Laws Accredited

Kay Laws Accredited, Accredited Partner

  • 3,454 Points 3k badge 2x thumb
A simply process is to set up a Bank Account called Payroll Clearing
Payroll is processed using the payroll clearing rather than the physical Bank this will show all the individual pay cheques.
A write cheque transaction is then process from the Physical bank to pay the payroll clearing account, this brings the payroll clearing account back to zero unless there is a discrepancy & leaves only one transaction to be reconciled in the bank account rather than multiple entries.
The payroll clearing account should also be reconciled
Photo of Buddhika Perera

Buddhika Perera

  • 60 Points
Hi all, currently I'm using this method for payroll (using a wages clearing bank account). The issue is this account has the same bank account details as the company main cheque account as we need to upload the ABA file into the bank to pay employees.
Therefore I have 2 bank accounts in Reckon Hosted 2015 with same BSB and Account number.When I try to upload a webconnect file (QBO) to do bank reconciliations, I'm getting an error message as there are 2 bank accounts with same BSB and AC number. The only way to get around this problem is to change the Wages clearing account bank account number to something else (i.e 111111) each time i upload a QBO file.Once I completed the reconciliation i have to go back and amend the wages clearing account number back to the correct one.I needed to do this process everytime i upload a bank file.Does any one has this problem?
Photo of John Graetz

John Graetz

  • 23,728 Points 20k badge 2x thumb
Hi Buddhika.  I use the a wages clearing account, set up as a bank account and use the same details as those of my Westpac bank account.  However, I don't use the Westpac account to make the payment, but use and entirely different bank and account..  Because I use the import file function, as far as I am concerned, based on experience, the bank account details have absolutely no relevance.  It is years since I experimented to get this to work correctly.  Based on what I am saying, it would seem logical that you could use a different account number for the clearing account, because those details aren't used by the ABA file, unless they are somehow linked to the real account. Another option you might like to look at, if that doesn't work, is to temporarily remove the Payroll Clearing Account from having online access by editing that "bank" account by going to the "Online Bank Details" tab and unticking "Online Account Access".  This will involve a lot more mucking around, having to tick and untick, so I would be hoping that the first option, changing the bank account number to something different, will work.  It it does, you should never have to alter it back to the "correct" account number.  John G.
Photo of Marina

Marina

  • 528 Points 500 badge 2x thumb
Hello John,

I have the same problem as  Buddhika, so I will be trying your method 1 with fingers crossed. 

Regards,
Marina
Photo of John Graetz

John Graetz

  • 23,728 Points 20k badge 2x thumb
Hi Marina.  Good luck.  This works perfectly for me these days.  If you have any issues by all means come back to me.  The important thing to know though is this.  When you go to the Online Banking Module, every bank account that you have enabled will show up at the top of the page and possibly your main one will be the ONLY one ticked.  Make sure that you tick the special bank account, through which you are processing your pays, or else nothing will appear in the details section at the bottom of the page.  This can be a bit disconcerting the first time that you encounter this issue, because you might think that you have lost all of the details.  Generally I find that I do not have to untick any other bank account, as long as I have ticked that special bank account through which the pays are being processed.  John G

This conversation is no longer open for comments or replies.