Payment Method Explained

Payment Method Explained (Payee Master File)

Brett Reed

Jan 13, 2024

637

🎯 Payment Method is the fifth section within Employment and Payment Details and is used to define that the Payee is either paid by Cash or EFT (including entry of the relevant bank account details).

Payment Method allows you to select Cash, EFT or FAST-Bank.

If Payment Method = EFT or FAST-Bank,

Order allows you to re-organise the Payees bank account/s.

Amount allows you to define the amount (dollar or percentage) disbursed to the selected bank account. Select Balance for an account with no defined value.

🎯 If an account exists with an amount of 100.00% and a new Bank Account is added, the amount for the existing account will be reduced.

🎯 At this stage, Bank Accounts cannot be a combination of % and $. All Bank accounts must be set to one of those options.

🎯 If all bank accounts have a set dollar amount and the TOTAL NET is LESS than what is defined in Banking, payments will be disbursed in order, ignoring any accounts that cannot be used.

Example - The Payee's Net Pay is $500.00, and there are 3 Bank Accounts established. The First Account is set to $400.00, the second account is set to $300.00, and the third account for the balance.
As $400.00 is paid to the first account, only $100.00 of the Net Pay remains.
As ONLY $100.00 remains, this is transferred into the second account, and the third account is ignored.

🎯 If all bank accounts have a set dollar amount and the TOTAL NET is MORE than what is defined in Banking, payments will be disbursed in order, with the 'overpayment' being paid into the last account.

Example - The Payee's Net Pay is $1,000.00, and there are 2 Bank Accounts established. The First Account is set to $400.00, and the second account is set to $300.00.
As $400.00 is paid to the first account, $600.00 of the Net Pay remains.
As $600.00 remains, this is paid into the second account., rather than $300.00 as defined, otherwise the payee would be underpaid.

BSB allows you the enter the Bank, State, Branch (BSB) Code for the required bank account.

Code displays the 3-letter code associated with the BSB entered.

Account Number allows you the enter the Account Number for the required bank account.

Account Name allows you the enter the Account Name for the required bank account.

Reference allows you to enter the reference to display on the Payees Bank statement.

Add allows you to add the new Bank Account.

Delete allows you to delete the selected Bank Account once Save is selected.