Currently, each employee EFT is posted to Bank Rec separately, but our bank posts the EFT withdrawal as a lump sum. Reconciling to the individual entries Payroll posts is arduous for large payrolls. If Payroll posted EFT similar to AR deposits, as a total but with the ability to drill into detail/reverse individual items, it would make reconciliation much easier.
by: David G. | over a year ago | Financial Management
Comments
We have a different bank code set up for our EFT payroll which uses the same GL account as our operating bank account. To record the lump sum payroll out of our operating account I simply post it as a transfer from the operating bank to the EFT bank. Whenever I have time to do "housekeeping" I reconcile the EFT bank, which is easy since I can just clear everything in it and then post.
Yes, I have set it up this way too. It would be nice to have the feature suggested as an option.
If it was a lump sum you would need to have some way of adjusting it in cases where the funds are returned to you. It is easy now as you just don't clear that item. What I do then is I do a manual "replacement" cheque and I just note the EFT cheque number to replace it, rather than doing all the work of reversing the EFT and re-entering the info in order to do a cheque. Sometimes the cheque may not be cleared until the following month which makes it much easier the way it works now. What I do is I use a cheque number system that can only be used for payroll EFT and then I just need to do a quick clearing for all the EFT cheques by entering the first and the last cheque issued, unless the funds were returned.
We have a separate bank account as noted above. It seems to work well.
We just mergered our Administration payroll database into our funding company database and now users know what the president and all top dogs earn. lump sum posting would prevent super sensitive information from leaking out.