- Specify company and processing options for Bank Services. (Click Options.)
- Create distribution codes for the general ledger accounts you use in bank entries. (Click Distribution Codes.)
- Select options for creating batches of G/L transactions, and specify the Bank Services information that you want to include with G/L transaction details. (Click G/L Integration.)
After you select options and add records for credit cards and distribution codes, you use the Banks window (Payroll Setup) to add a record for each bank account.
Before Setting up Bank Services
- Gather all your current bank records. You should have ready:
- A list of the bank accounts used in your general ledger, including addresses, phone numbers, contact persons, bank account numbers, and transit numbers.
- A list of the types of transactions that you process for each of your bank accounts for example, service charges, transfers of funds between accounts, interest income, and so on.
- Records of your most recent bank reconciliation for each bank account (including bank statements), with each General Ledger bank account reconciled up to the end of its most recent bank statement.
- A list of outstanding transactions for each bank account.
- The physical check stocks and deposit slips you use for each bank account, or a list of the next check numbers and deposit slip numbers to use for the accounts.
- Add to your general ledger the accounts you need for bank transactions. The required general ledger accounts include:
- A general ledger account for each bank account you use.
- Income accounts to which the program posts interest earned on your bank account balance and other income that is reported on your bank statements. You can set up one or more income accounts for each bank account, or use the same income account for all bank accounts.
- Expense accounts to which the program posts amounts charged against your bank account for interest on loans, penalties on returned checks, bank service charges, and other expenses that are reported on your bank statements. You can set up one or more expense accounts for each bank account, or use the same expense account for all bank accounts.
- An error account to which the program posts minor discrepancies between the bank statement and your computerized records. You can set up an error account for each bank account, or use one error account for all bank accounts.
- An account to which to post credit card charges.
- An account to which the program posts exchange gains and losses, if you use multicurrency accounting. You can set up a separate gain account and loss account (or a combined gain and loss account) for each bank account, or use one account or pair of accounts for all bank accounts.
Do not set the Post To Account field to Prohibited for any of these accounts.