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
- (If a foreign currency bank account) 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 records, 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, deselect 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 and loss account types
- Click the Enter 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. Otherwise 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.