We have some payments that are automatically withdrawn from out checking account to pay contracts with service providers and some vendors we've paid via direct withdrawal from our bank account to theirs. What is the best way to record these transactions? If through the Accounts Payable module, there is no check number - what do you record in that field? If through Fund Accounting module, how do you account for vendors who should receive a 1099? (I have a thought about how I think we should be handling this, but want to hear how others handle this.)
Thank you!
Susan
ACH and other Electronic Payments to Vendors
Moderators: Moderators, Tech Support
Re: ACH and other Electronic Payments to Vendors
Never pay vendors thorugh the Funds Accounting, you lose any tracking history with the vendor, as well as the 1099 calculations done by the system. Do it through Accounts Payable, use a MANUAL CHECK, and I usually enter something like this which I use for Federal Taxes, EFT-IRS, as the check number, with the date of the vendor statement (or in the case of the IRS the month I'm making the deposit for) in the description block.SusanG wrote:We have some payments that are automatically withdrawn from out checking account to pay contracts with service providers and some vendors we've paid via direct withdrawal from our bank account to theirs. What is the best way to record these transactions? If through the Accounts Payable module, there is no check number - what do you record in that field? If through Fund Accounting module, how do you account for vendors who should receive a 1099? (I have a thought about how I think we should be handling this, but want to hear how others handle this.)
Thank you!
Susan
As far as the 1099, you just check the box on the VENDOR record to Print 1099, and that usually covers this requirement. To verify that you can go to the VENDOR history and it should show the Incl 1099 box checked for that date and payment.
Hope this helps.
Neil Zampella
Using PC+ since 1999.
Using PC+ since 1999.
Re: ACH and other Electronic Payments to Vendors
Many thanks!!! That is what I was thinking but I wanted to be sure. I didn't want to poison anybody's thoughts with faulty ideas if I was on the wrong track.
Re: ACH and other Electronic Payments to Vendors
We have been using more ACH and Credit Card (for points) payments than checks lately. For our bank, ACH payments have a bank generated unique tracking/payment number. We use that as the check number. It also corresponds with what gets listed on the monthly bank statement which makes reconciliation much easier. The number in our books and the number on the bank statement match up.
Re: ACH and other Electronic Payments to Vendors
That works also ... if you have that number use it ... whatever works. If you don't, use something you develop locally.TonyL222 wrote:We have been using more ACH and Credit Card (for points) payments than checks lately. For our bank, ACH payments have a bank generated unique tracking/payment number. We use that as the check number. It also corresponds with what gets listed on the monthly bank statement which makes reconciliation much easier. The number in our books and the number on the bank statement match up.
Neil Zampella
Using PC+ since 1999.
Using PC+ since 1999.