Electronic banking and PC

[debbieg]

I would be curious to hear what kind of procedures are used by those that pay bills by electronic banking (online bill pay, etc).

Do you still load them in the AP module? It seems like then you are just trading the task of printing a check with keying the info into your bank's application. If not AP, then is the only other choice to either do manual checks or just straight entry into accounting transaction?

What about those vendors that you need to pay that don't do electronic banking? Do you cut paper checks for them? how do you keep track of the mixture of the two then?

Do you maintain any kind of paper trail? When we print hard copy checks, we attach the stub to the bill or invoice.

I'm looking for the pros and cons and best procedures to make it work if we go that direction.

Thanks,
Debbie

[JohnDMeyers]

Debbie:

Our electric bill, and waste removal bill are monthly, and electronic. The amounts differ slightly, sometimes.

I set them up in Repeating entries as manual checks. All the information (vendor, account, etc.) is there, so our bookkeeper only has to modify the amount, which saves her time.

[debbieg]

Thanks for the input John. I guess I wasn't thinking so much about receiving the bills electronically as paying electronically. Suppose your standard bills still all come on paper but you are paying them through the bank (or vendor website) electronically. But I would assume there will always be other items that are done through paper checks (eg. expense check to church member).
I'm trying to understand how it would all co-ordinate together and what kind of paper trail (if any) that other churches maintain.

Our pattern right now if very straightforward....load bills in AP (using release function for repeated monthly bills), print computer checks and mail, post the AP to fund accounting.

what is a standard procedure if bills are paid electronically. I think you have several methods you could use in PC...just wondering what people have found to be the best.

Debbie

[tborgal]

I have several that happen automatically, but in most cases I still receive a paper statement form the vendor. I do not pay any bills thru electronic banking at our bank because the type of account we have will not allow it.The withholding taxes are paid using the federal and state web pages, but the end result is the same in both cases. I enter each transaction as a manual check. I do not worry about having a paper stub since the transaction is available in PC should I need it. I keep everything backed up and have a copy off site as well. In a small way I am trying to get rid of as much paper as I can by scanning things so I have a digital copy instead of all the paper. Just so much storage and trying to conserve as much as I can.

Hope this helps a little.

[NeilZ]

Debbie,

we do a few things via direct debit, such as paying withholding taxes. As John said, we have them setup as a recurring manual check in the AP module. When the bookkeeper goes on line to pay the taxes, she then enters pulls up the recurring transaction, which has all the correct accounts included. She adds the amount, and sets the description as EFT. They are then posted as normal.

[beas]

Like Neil, I pay taxes via EFT (both federal and state here in Oregon) and post as he does. I also have a credit card account that I have set alerts to let me know when the statement is ready. When it is, I print it, set the payment to be made on the due date and give the statement to the administrative assistant. She has collected the receipts and notes the posting accounts on the statement so they can be posted to PC.

What you obviously do save by electronic payments is checks and postage. However, the biggest advantage to me is that I don't have to depend on the USPS to get the check there on time (or maybe lose it) and, therefore, payment is made on time, every time...especially with those that can have the payment scheduled in advance. I still make most payments by check because most of them are local and they don't have the capability to accept direct online payments.

If you're talking about bill-pay via your bank, some offer EFT as well as a real check that is sent and will have a list of companies or businesses that will accept EFT.

[debbieg]

Thanks to all for your input. I also do some things electronically like the state and federal taxes.
what I'm not clear on is ....it sounds like you still use the AP module for things you have paid electronically. Is this necessary? Is there an advantage to this? When I pay taxes online, I just go into Fund Accounting module later and pull up the repeating transaction that I created for IRS. I change the money amounts and dates and add a reference number like "EFT-##" and save. These payments don't go through the AP module.
We also have a separate account for a debit/Visa card that certain church staff use. At the end of the month, I download a list from the bank and each of these transactions are also entered through the Fund Accoounting "Enter Transactions" screen. I know the manual/Help text mentions doing these type of transacations throught the "Maintain Manual Checks" screen but I'm not sure I see any advantage to that.

A couple of you mentioned using the AP module and handling it as a "recurring manual check". Are you referring to "release repeating items"? I don't see anything in the "Maintain Manual Checks" that lets you recall a saved transaction.

I hope I'm not being dense but if you could be a little more specific about where you are doing these recurring transactions when you are not writing a check, I would appreciate it.
Debbie

[JohnDMeyers]

I use the AP items. I use the Repeating Items and release them as a Manual Check, which is an option.

The advantage to using the AP module over Fund Accounting is that it updates your Vendor Record history. This is especially useful if you pay the same vendor for non-repeating things, as well as repeating things. All the history is in one place. If you use FA for repeating items, and AP for non-repeating items, you will not be able to reconstruct your entire payment history for that vendor.

[NeilZ]

I agree with John ... using the AP module also gives you a more detailed audit trail of where and why the funds were disbursed.

[beas]

Exactly.

[debbieg]

Well....I learned something new. I had never paid attention to the "Release as" button on the Maintain Repeating Entries screen. I tried that for this months IRS payment and it worked fine.

I don't know if I see that much benefit to the reporting aspect of having things in AP. There are so few reports in the AP module. Once the transactions have been posted, I can report on them in FA. I guess the reports that I typically run tend to be focused on budget categories as opposed to particular vendors.

Just want to say how great this forum is for sharing ideas and helping others along.
Thanks again!

Debbie