Banks

July 4, 2019 in Cash Management

Purpose

This procedure is used to enter or modify the details of Bank Accounts. At least one Bank Account must be established for use in the Accounts Payable and Accounts Receivable Ledgers so that payment and receipts transactions can be recorded on the system. You can set up as many banks as you need. Each user can have a default bank associated with their individual User login. This user default is used to ‘auto select’ the bank for the user where bank entry is required in transactions e.g. Cash Receipts.

There are a number of displays and reports that can be generated in the system to show summary and detailed cash payments, cash holdings and cash requirements once Banks have been created in the system. Additionally the Bank Reconciliation can optionally be turned on in the System Options to allow you to check the transactions in Online Advantage against the transactions that have been recorded by your bank via a Bank Statement or Bank transaction export.

Data Input

­

Step 1 – Bank Code

Bank Code

Enter a new, unique bank code, that does not already exist on the system.
You may select an existing bank code for editing.

For details on the use of “codes”, see The Role of “Codes” in Online Advantage
Return to the Top

Step 2 – Details

Bank Name

Enter the name of the bank. This is used to describe the bank itself and is used when choosing the bank in transaction entry and on report filters.

For more details on descriptions, see The Role of “Names & Descriptions” in Online Advantage

BSB Number

Enter the BSB number. The BSB number is the branch number relating to the bank account and is used/printed on the bank deposit slip and in Bank Transfers.

Bank Account Number

Enter the bank account number. This is the unique account number you bank has allocated to you account. It is also is used/printed on any bank deposit slip generated for this account and is also used in Bank Transfers.

Branch Name

Enter the branch name of the bank. This is usually the branch where the account was opened.

Name of Account

Enter the name of account. The name of the account is the name that the bank uses to identify this account.

Currency

Select the currency. The Online system supports the both “local” bank accounts in the “systems” currency as well as any bank accounts where you hold funds in another currency. This feature allows you to receive and hold foreign currency payments from customers in the currency they are made in, as well as making payment to suppliers from your foreign currency bank account rather than purchasing the currency required via your local currency bank accounts at a nominated fx rate.

Overdraft Limit

Enter the maximum overdraft facility arranged with this bank account if one exists. This is used in available cash calculations. Leave this input blank if you have no overdraft or draw-down facility.

Statement Format

If you are going to perform bank reconciliation by uploading your banking transactions, then select the electronic statement format to use for this bank. The Electronic Statement Format must exist.

See related topics: Electronic Statement Format and Bank Reconciliation for more details.

Close Account

Release SymbolSelect this if you would like to tag the bank account as being ‘closed’. With this option selected, you may not use the bank in transactions such as Cash Receipts or Supplier Payments. You may choose to set the account to closed rather than delete it so you can still access any transaction history on the bank account.
Return to the Top

Step 3 – Postings

Bank Balance Account
Account/Branch/Division

Enter the account, branch and division for bank balance. Whenever cash is received or payments made to this bank, the account entered here will be used to post to GL. Typically to the “Current Assets” section of the Balance Sheet. Note: If you want to be able to easily reconcile the Bank Balance to the GL Account Balance then you should NOT use the same account specified here for more than one Bank account. If the account is present on two or more Bank accounts the OA system generated Ledger Report will always report a variance between the ledgers as it assumes a one to one relationship.

Default Bank Charges/Fees Account
Account/Branch/Division

Enter the account, branch and division for default bank charges/fees. This is used as a default GL posting account when entering bank charges in bank reconciliation. The account posting can be varied if required during the bank rec process.

Default Interest Received Account
Account/Branch/Division

Enter the account, branch and division for default interest received. This is used as a default GL posting account when entering interest in bank reconciliation. The account posting can be varied if required during the bank rec process.
Return to the Top

Step 4 – Electronic Funds Transfer (EFT)

The entries at this step relate to generating export files for bank transfers or E-commerce payments. The entries here allow the system to create a payments file that can be exported from Online and then imported into your Bank “system”. The system provided by your bank might be in the form of a web site login over the internet or via some banking software. For instance in Australia the main banks have adopted a de-facto file format called an ABA or Direct Entry file. Online supports this file format which can be used to generate an upload file of an unlimited number of supplier or sundry payments made on the system.

The ABA payment file when uploaded to your bank will instruct the bank to debit your account with the total of the payments in the file, and to credit each suppliers account as per the individual BSB and Bank Account details you have recorded in the file. this makes it a very easy and efficient way to process multiple Accounts Payable payment transactions at one time. Using Online to create an EFT payment file means that you no longer have to maintain a list of suppliers and their banking details in your bank software. You simply record the banking details for EFT suppliers in Online and let the system create the payment file for uploading to the bank.

User ID

Enter the user ID for electronic funds transfer. This is a user ID provided by your bank.

User Name

Enter the user name for electronic funds transfer. This is the name of your account at the bank.

Bank Abbreviation

Enter bank abbreviation for electronic funds transfer. Refer to your bank for the correct abbreviation.

Remittance Name

Enter the remittance name for electronic funds transfer. This is your bank account name.

Merchant Bank ID

Enter the merchant bank id. The Merchant Bank is used in the E-commerce payment gateway.

Merchant Bank Password

Enter the merchant bank password. This password is used in E-commerce payment transaction to connect to the Merchant Bank account for payments.

Non-self balancing file

Select this option if the export file is a non-self balancing file. If unchecked, the export file will contain an additional total line that equals the sum of the transaction lines (but reverse sign) I.E. ‘self balancing’. If checked, this total line is omitted (a requirement of some banks).

Export Format

Release SymbolChoose the format the bank requires for uploading bank transfer payments.

If you are making payments via ‘Bank Transfer‘ you may wish to export the payments from Online Advantage and upload to your bank. The format of the upload file for banks varies between banks and sometimes even between countries for the same bank. If your bank format is not available on the current list, you would need to speak to your bank to get technical details about their required file format and pass that through to the Support Help Desk to request a change to accommodate the bank’s format.
Return to the Top

{ 0 comments… add one now }

Ask a Question or Leave a Comment

Previous post:

Next post: