The bank payment process can be used for money you pay out that does not relate to a purchase or supplier account. This type of payment will only record the necessary accounting entries, it won't generate any physical documents. Some examples for when to use a Bank Payment are:
- Paying wages and salaries
- Paying expenses
- Cash withdrawals
- Paying HM Revenue & Customs
- Bank loan repayments
- Miscellaneous, sundry items or one-off payments
Payments relating to purchases should have a purchase order/invoice from your supplier. These payments should be processed through the purchases module and not as a bank payment.
How to enter a bank payment (bank withdrawal)
- Go to Accounting > Bank payment.
- Select the bank account you want to make the payment from. The transaction will be recorded in the currency of the bank account.
- Select the account code relevant for the expenses you are paying.
- Enter the date the payment was made.
- (With MC on) The system exchange rate for the transaction date is displayed. Amend the exchange rate as required.
- Enter the details of the payment. This is for your own record, so that you know what the payment is should you need to investigate it later.
- Select the tax code and check the box to automatically calculate tax. To enter your own net and tax values, uncheck the box.
- Enter the amount of the payment.
- (Optional) Use the Channel, Project and Lead Source fields to relate the payment for reporting purposes (these will only be assigned to profit & loss account types).
- Click the Enter bank payment button.
An accounting journal is created and the journal ID is displayed.
Ad-hoc check printing (US only)
With ad-hoc check printing a single check can be printed from a bank payment. When entering the bank payment specify whether a printed check is required. If the check number is known it can be entered manually, however, the check printing process is capable of auto-assigning the check number.
Once the bank payment has been entered, the check can be printed from the list of vendor payments at Vendors > Vendor payments.