You can generate payments to Creditors (e.g. Health Funds, Unions) as a file that can be uploaded to your bank in the same manner as your bank file for wages. The creditor file contains one record per Creditor detailing the total contributions payable.
Only values calculated after the Creditor record has been created will be included in the Creditor bank file. Likewise, when you attach a deduction to the Creditor record, the file will only include values from pay periods processed after you added it.
Set up Creditors
There are three steps to complete:
Define the Company Bank - this is the bank account you pay from. You can use the same record for multiple companies or create different records if paying from different bank accounts.
Attach the Company Bank to the Payroll Company.
Create the Creditor Record.
Skip to step three if the Creditor EFT has already been defined and attached to your Payroll Company.
Step One - Define the Company Bank
Go to Payroll, Maintenance, General, Company Banks, Company Banks.
Click Add if using a different bank account or right-click and Copy on an existing Company Bank, if the Creditor payments are made from the same account.
Enter a unique Code and Institution Name.
Select the Country.
Tick Creditor Payments.
Confirm or enter the company bank account details in Identification Information.
Select the File Layout. If you need to set up a separate file layout for your creditor payments, right-click and select Add New.
Enter a description in General Description of Entries.
Type in a unique file name in Name of Output File.
Enter the file extension (e.g. CSV, AFI) in Extention of Output File.
Define where the file will be created in the Path of Output File.
Click OK to save.
Step Two - Assign Creditor Company Bank to Payroll Company
For each Payroll Company, you must nominate which bank account will be used to make Creditor payments.
Go to Payroll, Maintenance, General, Payroll Companies.
Edit the Payroll Company.
Select the Company Bank in Creditor Details. (Only Company Banks with the Creditor Payments ticked are available.)
Click OK to save.
Step Three - Set up the Creditor Record (except IRD or superannuation)
Go to Payroll, Maintenance, General, Creditors.
Click Add.
Enter a Code, Description and IRD.
Enter the Bank Details for the Creditor, i.e. the Creditor's Bank Account.
Enter the Lodgement Reference supplied by the Creditor (if applicable).
On the Contact Details tab, complete the Contact and Address details. This is optional.
Select the Payroll Companies tab.
Click Select to choose which Payroll Company to include in the Creditor setup.
On the Deductions tab, use Select to choose existing deductions that are used to deduct the amounts for the Creditor. If the deduction doesn't already exist, you can use the Add button to create it.
Click OK to save.
Note: If the BSB Number is not available, you can add it by right-clicking in the field and selecting Add New. Complete the relevant bank details and click OK to update the BSB list.
Generate Creditor Payments
Deduction from processed pays will be included in the bank file. Don't include IRD and Superannuation when you produce the creditor bank file for all other creditors. Before processing each of your creditor EFT files, check whether there is an existing bank file in the file location. If you still need this file, rename or move the file.
Go to Payroll, Transactions, Import and Export, Generate Creditor Payments.
Select the Creditor(s) you wish to pay.
Payroll Company and Location default to All. Select if required.
For all Creditors except Super, Company Bank will be greyed out.
The Process To lists all processed pay periods that can be included that have not already been paid. When you select a period, outstanding amounts for periods up to and including the chosen one will be included.
Enter the required dates in Batch Creation Date and Batch Due Date. These will default to today's date.
Overwrite File if Exists is used when you want to overwrite any existing file in the destination path. If this is not selected, the transactions will be appended to the existing file.
To check the amounts to be paid, click Print or Preview to generate the Creditor Payment Audit Report. The values can be checked against the Payroll or Additions and Deductions Reports.
To create the file, click File.
Move or rename the EFT file if you are going to process another creditor.
Click the Close button.
Check how much is owed to the Creditor
The Creditor Reconciliation Report lists values for all periods within the date range and whether the Creditor has been generated by including a date in Date EFT Generated.
Go to Payroll, Reports, End of Pay, Creditor Reconciliation.
Payroll Company and Location default to All. Select particular records from the drop-down lists if required.
From the Creditor dropdown list, select the Creditor(s) you wish to include.
You may produce this report using values from only one Pay Frequency or accept the default for All.
Tick Include Previous Tax Years, to include payments from previous years.
The From Period End and To Period End dropdown fields list all closed pay periods, based on the Pay Frequency. Select the date range required.
Click Print or Preview to generate the Report.