ACH and other Electronic Payments to Vendors

Fund Accounting, Accounts Payable, Accounts Receivable, Payroll

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SusanG
Posts: 27
Joined: Thu Mar 26, 2009 12:01 pm

ACH and other Electronic Payments to Vendors

Post by SusanG »

We have some payments that are automatically withdrawn from out checking account to pay contracts with service providers and some vendors we've paid via direct withdrawal from our bank account to theirs.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

NeilZ
Posts: 10209
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
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Re: ACH and other Electronic Payments to Vendors

Post by NeilZ »

SusanG wrote:We have some payments that are automatically withdrawn from out checking account to pay contracts with service providers and some vendors we've paid via direct withdrawal from our bank account to theirs.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
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.

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.

SusanG
Posts: 27
Joined: Thu Mar 26, 2009 12:01 pm

Re: ACH and other Electronic Payments to Vendors

Post by SusanG »

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.

TonyL222
Posts: 47
Joined: Wed Feb 10, 2016 10:55 am

Re: ACH and other Electronic Payments to Vendors

Post by TonyL222 »

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.

NeilZ
Posts: 10209
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
Contact:

Re: ACH and other Electronic Payments to Vendors

Post by NeilZ »

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.
That works also ... if you have that number use it ... whatever works. If you don't, use something you develop locally.
Neil Zampella

Using PC+ since 1999.

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