Banking Setup

Overview

This section guides you to further utilize the Banking Module and make it easier for you to perform banking transactions. This section also discusses how to create different payment types, payment terms and payment term groups, as well as handling bank account opening balances, making your banking transactions a breeze.

 

 

 

 

 

 

 

 

 

 

 

 

 

Banking Module Preferences

Banking Preferences allows you to set up defaults to be used in banking transactions in Connected Business.

  1. From the Banking Module, click on Setup dropdown menu, and select Preferences. The Banking Preferences form will be displayed.



  2. Here are the settings in the Banking Preferences:

    Section Description
    General Section General preferences and default values for the Banking module.
    Default Bank Account You may select a default bank account to use in new bank transactions such as new bank payments and bank receipts.
    See Also: Bank and Bank Accounts

    Default Petty Cash You may select a default petty cash account to use in new petty cash transactions such as new petty cash payments and petty cash receipts.
    See Also: Petty Cash Accounts

    Check/Cheque Type You may select the check/cheque type to apply to the Bank Payment and Bank Receipt Form.
    1. Standard - when selected, you can type in the entity name in the Pay to the order of field in the Bank Payment Form and in the Receipt Form fields in the Bank Receipt Form
    1. Supplier Search - When selected, a pulldown button will appear in the Pay to the order of field of the Bank Payment Form that you can use to select from the Supplier list. While in the Bank Receipt form, a pulldown arrow button appears in the Receipt from field that you can use to select from the Customer list.

    Default Expense (Payments) Section Default values for bank payment transactions.
    Default Expense Tax Code You may select a default tax code for bank payment transactions.
    See Also: Tax Components and Tax Schemes

    Default Expense Code You may select a default expense account for new bank payments.

    Default Revenue (Receipts) Section Default values for bank receipt transactions.
    Default Revenue Tax Code You may select a default tax code for bank receipt transactions.

    Default Revenue Code You may select a default expense account for new bank receipts.
    See Also: Tax Components and Tax Schemes



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Bank Account Opening Balances

Opening Balances allows you to enter opening balance bank receipts and payments instead of entering the whole lump sum.



RECORDING BANK ACCOUNT OPENING BALANCES


Connected Business' intuitive design helps users create Bank Account Opening Balances easily.
To know more about this, see more: Bank Account Opening Balances



VIEWING HISTORY OF OPENING BALANCES


To view history of opening balances, select Opening Balance under the Setup drop down list to display the Opening Balance form. Clicking on the History tab will enable you to view recent opening balances.



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Payment Types

Payment Types are used to set up defaults for payments such as default payment method, bank account and credit card gateways to use. Here you can assign plug-in payment gateways to use for other payment methods such as Money Order and Wire Transfers.

Connected Business includes a default payment type for each default payment method. You can use this defaults to setup your payment terms. You can modify or add to the payment types later by double-clicking on the payment type you want to modify.


  1. From the Banking Module, click the Setup button, highlight the Payment menu and select Payment Type. The Payment Type form will be displayed.



  2. Click on the New button from the menu.

  3. In the Payment Type column of the List tab, select under the payment tupe column by double-clicking the payment type on the list. You will then be directed to the Details tab.

  4. On the Details tab, specify the payment type, payment description, payment method and the default bank account

  5. Add the Merchant Login by selecting on the dropdown list. The Credit Card Gateway will automatically be filled out.

Connected Business has full Credit Card Gateway functionality support.
To know more about this, see more: Credit Card Gateways.





  1. Check the Active checkbox to include the new payment type in the pulldown list.

  2. Save the details before closing the Payment Type setup form.

To edit and maintain existing Payment Types, select the payment type from the Payment Type form to display the Payment Type Setup form. Edit the details as necessary and save your inputs before closing the form.

 

To delete existing Payment Types, select the payment type to bring out the Payment Type Setup form. From the toolbar, select delete and click on Yes to confirm action.



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Payment Terms

Payment Terms are the agreed upon terms of payment between a buyer and seller. In Connected Business, the payment terms are used both in selling and purchasing processes and may be assigned to each of your customers and suppliers.


  1. From the Banking Module, click on the Setup dropdown menu, highlight the Payment option and select Term.

  2. You may create payment terms using the following due types.

    • Net Days from Invoice Date - Payment must be made in the specified number of days following the invoice date.

    • End of Month - Payment must be made after a month following the invoice date. Specify the net days for this due type.

    • Calendar Monthly - The system will calculate the number of days in a month following the invoice date.

    • Seasonal - The term will be applied limited to the season it is applicable. Specify the net days for this due type.

  3. Click on the Active checkbox to include the Payment Term in pulldown lists.



  4. Save the details before closing the Payment Term Setup form.


To edit and maintain existing Payment Terms, select the payment term from the Payment Term form to display the Payment Term Setup form. Edit the details as necessary and save your inputs before closing the form.

 

To delete existing Payment Terms, select the payment term to bring out the Payment Type Setup form. From the toolbar, select delete and click on Yes to confirm action.

Note that only payment terms that have not been assigned to class templates or used in any transaction may be deleted.



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CREATING A NET TERM (WITHOUT DISCOUNT)

  1. Specify the Payment Term Code and Description e.g. NET30 – Terms 30 Days from Document Date.

  2. Select “Net Days from Invoice Date” as Due Type.

  3. In the Terms Days field, enter the net days to pay following the invoice date.

  4. Select the Payment Type that would determine the default payment method, bank account and payment gateway to use.




CREATING A NET TERM (WITH DISCOUNT)

  1. Specify the Payment Term Code and Description e.g. NET 30 2% 7 – Terms 30 Days from Document Date – 2% Discount if Paid within 7 Days.

  2. Select “Net Days from Invoice Date” as Due Type.

  3. In the Term Days field, enter the net days to pay following the invoice date.

  4. To add settlement discount, select the discount type in the Discount Type field.

    1. If Percent, enter the discountable days following the invoice date and enter the discount percent.

    2. If Amount, enter the discountable days following the invoice date and the discount amount.

  5. Select the Payment Type that would determine the default payment method, bank account and payment gateway to use.


CREATING AN END OF MONTH TERM

  1. Specify the Payment Term Code and Description e.g. EOM – End of Month

  2. Select “End of Month” as Due Type.

  3. In the Term Days field, you may enter the net days to pay following the invoice date.

  4. To add a settlement discount, select the discount type in the Discount Type field.

    1. If Percent, enter the discountable days following the invoice date and enter the discount percent.

    2. If Amount, enter the discountable days following the invoice date and enter the discount amount.

  5. Select a Payment Type that would determine the default payment method, bank account and payment gateway to use.


CREATING A CALENDAR MONTHLY TERM

  1. Specify the Payment Term Code and Description e.g. Calendar Monthly

  2. Select “Calendar Monthly” as Due Type. The system will calculate the end of month following the invoice date according to the system calendar.

  3. To add a settlement discount, select the discount type in the Discount Type field.

  4. If Percent, enter the discountable days following the invoice date and enter the discount percent.

    1. If Amount, enter the discountable days following the invoice date and enter the discount percent.

  5. Select a Payment Type that will determine the default payment method, bank account and payment gateway to use.


CREATING A SEASONAL TERM

  1. Specify the Payment Term Code and Description e.g. Seasonal

  2. Select “Seasonal” as the Due Type.

  3. In the Start Date field, select the date that the seasonal term will take effect.

  4. In the Term Days field, you may enter the net days to pay following the invoice date.

  5. To add a settlement discount, select the discount type in the Discount Type field.

    1. If Percent, enter the discountable days following the invoice date and enter the discount percent.

    2. If Amount, enter the discountable days following the invoice date and enter the discount percent.

  6. Select the Payment Type that will determine the default payment method, bank account and payment gateway to use.

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Payment Term Groups

Payment Term Group is used to group like payment terms for a particular class of customers e.g. a group of payment terms for payment terms such as credit cards.

  1. From the Banking Module, click on Setup dropdown menu, highlight the Payment option and select Group.

  2. Specify the Payment Term Group Code e.g. NET Terms.

  3. Check the Active checkbox to include the Payment Term Group in the pulldown lists.

  4. In the Existing Payment Term list, select the payment terms to group. Click on the > button to move the selected payment term to the Selected Payment Term list. Alternatively, you can use the >> button to move all items.

  5. Save the details before closing the Payment Term Group Setup form.

To edit and maintain existing Payment Term Groups, select the payment term from the Payment Term Group form to display the Payment Term Group Setup form. Edit the details as necessary and save your inputs before closing the form.

 

To delete existing Payment Term Groups, select the payment term to bring out the Payment Term Group Setup form. From the toolbar, select delete and click on Yes to confirm action.

Note that only payment terms that have not been assigned to class templates or used in any transaction may be deleted.



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  • Thursday, 25 October 2012