The Batch Payment functionality gives the user the ability to prepare a batch which will create a file to import into their banking software. Saving time on entering transactions into the bank. These files can be used to pay creditors, direct debits for client payments, and for payroll payments.
You first need to create a special account (in the assets section of your chart of accounts), called an Electronic Payment Account (EPA) where payments can be held temporarily between marking items as paid and uploading the file to the bank.
So if you are paying creditors you will credit EPA and debit accounts payable.
When you upload the batch to the bank the system will debit EPA and credit the bank.
(And vice-versa for direct debits)
You only need one electronic payments account in your chart of accounts
Creating an Electronic Payment Account (EPA)
- Go to your Master accounts list
- Add in a bank account
- Name it something obvious - like "Electronic Payments" or "Electronic Batch" .
Then link the account to the division accounts list and specify that it is for Electronic Payments by ticking the box and saving.
Your accounts list will now show the account as an Electronic Payment Account
Set up Bank Account details in the Contact records of the people you will be paying
- The bank account details will need to be added to the required contacts. Contact > Accounting Settings
- This information is held at a divisional level, so if you are part of a divisionalised database the contact record bank details are only for the use of that contact when used in your division.
- Payroll information is related to the Employee record rather than the Contact record.
- If you do not update the contact record and no Bank Account number is available for the Electronic payment it can be updated in your batch and this will back-fill to the contact record - this is particularly useful when you start using the Electronic Payments as it means to accounts can all be loaded in one hit.