ANSWER ID:9068

In your software, a bank account typically represents an asset account (for money coming in), and a credit card account typically represents a a liability account (for money being paid out). These accounts can be used in your software for recording customer or supplier payments. This support note explains how to setup and use these accounts in your software.

Note: For older software versions not covered by this support note, see our support note Setting up cheque and credit card accounts (pre-AccountRight versions).

Creating a bank or credit card account

1. Go to the Accounts command centre and click Accounts List.
2. If the account represents a bank account, click the Assets tab. If the account represents a credit card account, click the Liabilities tab.
3. Click New.
4. Select the Detail Account option.
5. If the account is an asset, set the Account Type to Bank. If the account is a liability, set the Account Type to Credit Card.
6. Enter the Account Number and the Account Name.
7. Click the Details tab.
8. [Optional] Enter an account Description.
9. Select the

   [Australia only]

   N-T tax code in the Tax Code field.

   [New Zealand only]

   N-T GST code in the GST Code field.
10. Click the Banking tab and enter your bank account details. The window below shows the setup of an example Asset bank account.

    [Australia only]

    Note: If this account is to be used for making electronic payments through your bank's web site or banking software, select the option I Create Bank Files (ABA) for This Account. For detailed information on electronic payments, please refer to our support note Making payments electronically.

    

    [New Zealand only]

    
11. Click OK to return to the Accounts List.

Note: Spend Money and Receive Payments transactions default to the bank account that has the lowest Account Number. For example, if there are two bank accounts, numbered 1-1100 and 1-1200, when opening the Spend Money window, the account number 1-1100 will be displayed in the Account field adjacent to the Pay From Account option.

How do I use a bank or credit card account?

For money coming in (Receive Money and Receive Payments)

1. Open Receive Money or Receive Payments.
2. Click the Deposit to Account option then select the desired chequebook or credit card account in the adjacent Account field.
3. Enter the transaction details as required then click Record. The window below shows account number 1-1110 selected for an example Receive Money transaction.

   [Australia only]

   

   [New Zealand only]

   

[Australia only]

For money being paid out (Spend Money and Pay Bills)

1. Open Spend Money or Pay Bills.
2. Click the Pay From Account option, then select the desired chequebook or credit card account in the adjacent Account field.
3. The window below shows account number 1-1110 General Cheque Account selected for an example Spend Money transaction.

[New Zealand only]

For money being paid out (Spend Money and Pay Bills)

1. Open Spend Money or Pay Bills.
2. Click the Pay From Account option, then select the desired chequebook or credit card account in the adjacent Account field.
3. The window below shows account number 1-1110 Cheque Account selected for an example Spend Money transaction.

How are bank and credit card accounts reconciled?

Bank and credit card accounts are easily reconciled by using the Reconcile Accounts function.

1. Go to the Banking command centre and click Reconcile Accounts.
2. Enter your bank or credit card account number in the Account field.
3. Enter the Bank Statement Date (the bank statement's closing balance date).
4. Select the transactions that have been presented to the bank. This will place a tick next to those transactions.
5. Enter the bank statement's closing balance in the Closing Statement Balance field (called the New Statement Balance field in some versions), then press the key.
6. If the Out of Balance amount is zero, click Reconcile.
7. You will then receive a prompt to print the Reconciliation Report. Click Print, then click the Reconcile button again. The window below shows the Reconcile Accounts window.

   [Australia only]

   

   [New Zealand only]

   

Note: You won't be able to reconcile an account if the Out of Balance amount is not zero. For help in these situations, see our support note Out of balance bank reconciliations.