Cash Management: Payment Methods

In MYOB Advanced, you can configure the payment methods that your organization uses to pay its vendors, as well as the payment methods that are used by customers to pay your organization. The settings of the payment methods describe how the particular payment is done and provide the default cash account to be used to record payments.

MYOB Advanced has predefined payment methods that can be adjusted to the business needs of an organization.

Payment Method Setup

You use the Payment Methods (CA204000) form to review the predefined payment methods and update them. (You can also define new payment methods on this form.)

On this form, you perform the following general steps to set up a payment method:

  1. In the Summary area, you specify the identifier, the means of payment (Credit Card, Cash/Check, or Direct Deposit), and the description.
  2. You use the appropriate check boxes to specify how you want the payment method to be used. If the payment method is used for customer payments, you select the Use in AR check box. If the payment method is used for payments to vendors, you select the Use in AP check box. If the payment method is used for payments to employees, select the Use in Payroll checkbox.
    Note: Payment methods used by Payroll should also have the Use in AP check box ticked, as the AP settings are also used by the Payroll module.
  3. On the Allowed Cash Accounts tab, you add rows for each of the cash accounts to be linked to this payment method, and you specify the appropriate settings for each listed account. The linked cash accounts can include regular cash accounts and clearing accounts.
  4. If necessary, you modify the settings on the Settings for Use in AR and Settings for Use in AP tabs.
  5. In the Summary area, you make sure that the Active check box is selected so that the payment method can be used.

Payment Method Deactivation

On the Payment Methods (CA204000) form, you can deactivate a payment method if you do not want it to be used for new payments.

If a payment method has been deactivated, the unreleased payments that use this payment method cannot be processed on the Process Payments / Print Checks (AP505000) form, but they can be released. You can select an inactive payment method in the Payment Method box on the Release Payments (AP505200) form to release the payments that use this payment method.