Bank Entries can be entered via:
an automated bank feed (click here for more details)
importing from a csv file (click here for more details)
To enter new manual bank transactions, go to Banking - Bank Accounts and click the ‘Enter Transactions’ button for the bank account you wish to enter transactions for.
NB the bank account should have the entry method set to manual.
Alternatively, you can also enter new manual bank transactions by clicking the Quick Links menu and then selecting the account you wish to enter transactions for.
When entering your bank transactions, you are essentially copying out your bank statements into the software. There will be a live balance on the screen so, if at any point, the balance on screen does not match the running balance on the bank statement you know there is an error. As long as the balances agree, a bank reconciliation is not needed.
Each transaction will need the following details:
Date: This is the date of the transaction on the bank/credit card statement
Type: There are four types of transactions – pick one from the drop down list. The option that you choose will determine the way that the entry is coded.
Cash Analysis based entry
Money In: This type of transaction is for amounts received directly into your bank account. This could be receipts where you are paid directly rather than issuing an invoice, direct income e.g. wayleaves.
Money Out: Any payments going out of your bank account by direct debit or cheque where you have not already entered an invoice – for example insurance, utility bills, rent etc.
The VAT is not declared until the entry of the receipt or payment in the case of Money In/Out transactions and assumes no invoices have already been entered.
If this transaction is money in/out for a single item (line). However if there is more than one item on this transaction use the split button at the end of the line – see below.
Category: Pick the category that this transaction relates to. New categories can be added from the bottom of the list.
Description: Write a brief description of what this transaction is for. This will be useful for future searches and will help your accountant at the end of the year.
Currency: It is only necessary to use this if you have opted to use multi-currencies.
Net: The figure before VAT
Tax Code: This will default to the code that you have opted to use with the selected category when you created it, providing this business is VAT registered see Company Settings > Financial Info. If no default code has been selected then it will use the Standard rate. This can be changed if applicable.
VAT: The VAT amount will be calculated but can be overwritten if necessary.
Total: This should be the gross amount that has gone through your bank account. This is calculated from the net plus VAT. Alternatively, if you do not know the net amount, you can enter the gross (total amount) and the VAT will be calculated automatically.
Multiple Lines – If this entry has more than one item on it, then use the Split button at the end of the line, rather than filling in the detail on this screen.
The detail can then be entered for each individual line – use the + sign to add more lines.
Pick one of the following transaction types if this transaction is clearing an invoice that has already been entered.
*Customer Receipt: This is for amounts received from customers that you have issued an invoice to. You will be asked to match the receipt to an outstanding invoice.
*Supplier Payment: This is for amounts paid to suppliers that have issued an invoice to you, which has already been entered. You will be asked to match the payment to the invoice.
*The VAT has normally already been taken care of when the invoice was entered unless you are on a Cash Accounting scheme.
If the transaction is a customer receipt or supplier payment, this option allows you to select the customer/supplier it relates to. You will also be able to select the invoice the amount relates to. Once the invoice is selected you can move on to the next transaction. You do not need to separate the VAT amount for customer receipts and supplier payments as this has already been done at the invoice level.
Date – Enter the date of payment from your bank statement
Category – This will now show a drop down list of all your traders. Pick the one that you are allocating this payment to.
Invoices – This green box will now be lit up. Clicking on it will give you a list of all unpaid invoices for this trader.
If the invoice is being paid in full, tick the ‘Pay in Full’ box. If only part of the invoice has been cleared then enter the amount in the Payment Total column.
Once you have entered all the necessary details simply click 'Save All' to save your bank transactions in Business Cloud.
Overpayments – (On account payments)
Please note when entering a Customer Receipt transaction for a customer who has overpaid you (i.e. paid more than the amount you invoiced them) you are able to allocate this to their account using our Overpayments feature.
Using the example below:
If the customer had accidentally paid you £60 you would enter 50.00 in the Payment Total field and 10.00 in here, like so:
This over payment would then be saved on their account for the next time an invoice is sent out where it will be automatically deducted from the new amount. You can opt to unlink the overpayment from the next invoice if required.
The Overpayments feature works in exactly the same way if you have overpaid one of your suppliers. First, select Supplier Payment as your transaction type, choose your supplier and select the invoice you have overpaid. Then enter the Payment Total followed by the Overpayment total.
The amount you have overpaid will then stay on the account and automatically offset against the next invoice you are issued from your supplier.