Paying Suppliers and Employees Electronically - Save Yourself Heaps of Time!
July 24, 2014
It is surprising to us how many of our clients still pay their suppliers and their employees one by one, then email individual remittances for each payment. This can take many hours to do each week … and you have much more valuable things to do.
To illustrate the benefits, we have a large manufacturer who was paying over $500K across 30 - 40 suppliers, in one electronic transfer, with total bank fees of $4.50. And with a few key strokes, emailing all of the remittance advices to the suppliers. So easy, quick and efficient!
The process looks daunting (see below) but is actually simple and quick. Just do it!
Preparation (once only):
Update your Supplier (and Employee) Cards with their bank account details;
Update the record of your own bank account in your accounting software. You will need your bank code (e.g: CBA) and Direct Entry User ID which is a six digit number. You will need to contact your bank for this Direct Entry User ID.
Payment Processing (each time):
With MYOB, pay your suppliers by selecting the option “Group with Electronic Payments” (MYOB) then “Prepare Electronic Payments”, select the payments you want to make and the date you want to make them, select the bank account to be paid from, click on “Bank File” and save this file in a new folder called “ABA Files” using the file naming convention YYYYMMDD.ABA … you could add S for Suppliers or P for Payroll.
With Xero, “Accounts – Suppliers – Make a Batch Payment – Export Batch File” and save this file as YYYYMMDD.ABA as above.
With Xero, “Send Remittance”.
With MYOB, “Print/Email Remittance Advices – To be Emailed – select the Advices to be emailed – Send Email” (a BIG hint … install ClickYes software first, which is Freeware for older operating systems and cheap for newer OS).
Open your internet banking site.
The next bit will vary depending on your bank, however for CBA …
Transfers & BPay – Transfer Groups & Import Files – Choose File – select the ABA file that you just created – Open – Import.
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The Teamrace Team hope you had a wonderful break over Christmas and New Year and we look forward to working with you in 2016.