Payments - Using Payee Option

THERE ARE TWO TYPES OF PAYMENTS WHICH ARE RECORDED WITHIN A BUSINESS - PAYMENTS TO SUPPLIERS / TRADE CREDITORS AND OTHER PAYMENTS.

 
OTHER PAYMENTS ARE PAYMENTS USING THE PAYEE OPTION WITHIN PAYMENTS ENTRY
 
FOR ANY PAYMENTS ON WHICH VAT HAS NOT BEEN PREVIOUSLY CAPTURED AND FOR ANY PAYMENTS WHICH ARE NOT SUPPLIER RELATED (I.E. BANK CHARGES ETC) THEN A PAYEE SHOULD BE SELECTED BY TYPING THE DESIRED NAME IN THE “SUPPLIER/PAYEE” BOX.
 
AFTER WHICH, WHEN YOU TAB PAST THE “SUPPLIER/PAYEE” YOU WILL BE PROMPTED TO SELECT IF THIS IS A NEW “SUPPLIER” OR “OTHER” SELECT “OTHER” (I.E. PAYEE). 
 
THIS WILL ADD THE PAYEE TO THE PAYEE LISTING FOR FUTURE USE.
 
SELECT THE NOMINAL ACCOUNT RELEVANT TO THE PAYMENT E.G BANK CHARGES.
 
 

BANK > PAYMENTS>

 
 
Payments from                  
 
Select the bank account from the drop down list from which the payment was made (bottom right hand corner of entry screen).  It is important that you ensure you are working from the correct bank account at the start.
 
 
Reference
 
This is the cheque number or the bank statement reference in the case of Direct Debits/Standing Orders
 
 
Date                                                            
 
Date as written on the actual cheque or in the case of Direct Debits/Standing Order the date of transaction per the bank statement
 
 
Supplier/Payee                  
 
Select a Payee from the existing list (F2) or type the first letter of the Payee name, use arrow down key to scroll through the existing Payee names.
 
To setup a new Payee simply type the new Payee name. The program will recognise the new name does not already exist and prompt you to specify if it is a new “Supplier” or “Other”, select “Other” to add the new name to the Payee list.
 
 
Nominal Account              
 
Select the appropriate nominal account, F2 will give a full list of the available accountswhich you have flagged for view within the Payments screen. Alternatively type the first letter of the account name and use the arrow keys to scroll through the nominal accounts.
 
 
Amount                                          
 
Enter the amount per the cheque or per bank statement in the case of Direct Debits/Standing Orders.  This will always be the GROSS amount when VAT is involved within the transaction.
 
 
VAT 
                                                            
If applicable a VAT rate can be attached to the amount entered which will record the VAT reclaimable from the Revenue through to the VAT account and VAT report.
While within the amount box use the arrow keys to scroll through the VAT rates available in order to capture the VAT on any payments for which you may reclaim VAT from the Revenue and for which the VAT was not previously captured. The VAT element will flow through to the VAT report to be included within the Normal VAT Report for the period.
 
 
An example of a non Supplier, i.e. PAYEE related payment is :
 
Dr                    Wages             350.00            Profit and Loss Account, Expense
 
 
Cr                    Bank                (350.00)          Balance Sheet, Paid reducing funds at Bank
 
 
The posting to the Trade Creditors account is omitted as the amount was paid straight away so did not need to be treated as a payable.
 
 

IT IS NOT OBLIGATORY TO SET UP A PAYEE OR TO ENTER ANYTHING INTO THE SUPPLIER / PAYEE FIELD.  IF YOU LEAVE THE FIELD BLANK THEN THE ENTRY IS RECORDED IN THE SAME MANNER AS A PAYEE PAYMENT BUT WITHOUT ATTACHING THE EXTRA NARRATIVE OF A PAYEE NAME TO THE TRANSACTION.

THE ADVANTAGE OF USING THE PAYEE OPTION IS THAT THE PAYEE GIVES ADDITIONAL NARRATIVE TO THE TRANSACTION IN ORDER TO IDENTIFY THE THE PURPOSE OF THE TRANSACTION.

ADDITIONAL, ONCE A PAYEE IS SET UP, THE PAYEE IS ADDED TO THE PAYEE LISTING AND CAN BE SELECTED AGAINST FUTURE TRANSACTIONS WHERE APPROPRIATE, THE LAST NOMINAL ACCOUNT USED FOR THE PAYEE WILL ALSO LINK TO SUBSEQUENT TRANSACTIONS AUTOMATICALLY BUT IS ALWAYS AVAILABLE TO CHANGE AT THE USERS DISCRETION.

Need help? Support is available at 01 8352074 or support@thesaurus.ie.

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