In this how-to we will explore the payment means function and
take a look at the detail on each of the tabs for both incoming and outgoing payments. Incoming payments are received in from your
customers as payment for supplies or services rendered. Outgoing payments are to send out to vendors for
supplies or services that were provided to you, or other payments.
A/R Incoming Payments, Deposits and Credit
Card Management
Incoming Payment
Go To > Banking > Incoming
Payments
Enter required Information
and Click on Payment Means.
Check Tab
Enter required Information. When recording the Incoming Payment on Check tab the Journal Entry
Debits Checking Account Clearing and Credits AR Trade account. You must then record a Deposit.
Bank Transfer Tab
Enter required Information. When recording the Incoming Payment on Bank Transfer tab the Journal
Entry Debits Cash Account and Credits AR Trade account. This goes directly to Bank Reconciliation.
Credit Card Tab
Enter required Information. When recording the Incoming Payment on Credit Card tab the Journal Entry
Debits Credit Card Clearing Account and Credits AR Trade account. You must then go to Credit Card Management
to move it to Cash Account.
Deposits for Checks
Go To > Banking > Deposits
> Deposits. Enter Required
Information and Click Add. When recording the Deposit the Journal Entry
Debits Cash and Credits Checking Account Clearing.
Credit Card Management
Go To > Banking > Incoming Payments > Credit Card
Management
Enter Selection Criteria and Click OK. (Optionally you can Check the Box Display
Undeposited Vouchers Only)
Select Credit Card Payment and Click Endorsement
Journal Entry Window opens, Enter offsetting GL Accounts. Example
Cash and Credit Card Fees. Click Add.
A/P Outgoing Payments and Checks for
Payment
The main difference between incoming and outgoing payments is the need
to define an account for the different payment means. For example if you create
an outgoing payment with cash, you must select the outgoing cash account for
the transaction. In this case, it can be your house bank account or a petty
cash account.
Outgoing Payments
Go To > Banking >
Outgoing Payments > Outgoing Payments
Enter required Information
and Click on Payment Means.
Check Tab
Enter required Information. When recording the Outgoing Payment on Check tab, the Journal Entry
Debits AP Trade account and Credits Cash.
Bank Transfer Tab
Enter required Information. When recording the Outgoing Payment on Bank Transfer tab the Journal
Entry Debits AP Trade account and Credits Cash. This goes directly to Bank Reconciliation.
Credit Card Tab
Enter required Information. When recording the Outgoing Payment on Credit Card tab the Journal Entry
Debits AP Trade account and Credits Credit Card Clearing. When the AP Invoice comes in from the Credit
Card company, you will record the AP invoice and on the expense lines,
reference the Credit card clearing.
