Payment Methods: General Information

MYOB Advanced has predefined payment methods that you can adjust to the business needs of an organization, or you can define new payment methods. 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.

A payroll employee may receive either a printed paycheck or a direct deposit. The payment methods used for the generation of employee paychecks and the cash accounts for each of those payment methods must be set up for use in payroll.

Learning Objectives

In this chapter, you will learn how to do the following:

  • Set up predefined payment methods and cash accounts for use in payroll
  • Define a direct deposit payment method

Applicable Scenarios

You set up the payment methods and related cash accounts to be used in payroll so that you can generate paychecks and your employees can receive their payments.

Payment Method Setup

You use the Payment Methods (CA204000) form to make a payment method available for use in payroll. On this form, you need to select the necessary payment method and perform the following steps:

  • In the Summary area, select the Use in PR check box.
  • On the Allowed Cash Accounts tab, select the Use in PR check box for the cash accounts that you want to mark as available for use in payroll.
  • On the same tab, make sure that the AP/PR Default check box is selected for the cash account that will be used as default for this payment method when it is used in payroll.

For the payment method that is marked for use in payroll, the Settings for Use in PR tab appears on the Payment Methods form. On this tab, you can specify the following settings:

  • If the payment method involves printed paychecks, you select the Print Checks check box and the Pay Checks (PR641010) report in the Report box.
  • If the payment method involves direct deposit payments, you select the Create Batch Payments check box and do one of the following:
    • If the US Payroll feature is enabled on the Enable/Disable Features (CS100000) form, you select Export PR Payment to ACH or Export PR Payment to ACH Balanced (depending on whether your bank requires that your ACH files include balance lines) in the Export Scenario box.
    • If the Canadian Payroll feature is enabled on the Enable/Disable Features form, you select Export PR Payments to EFT in the Export Scenario box.