In Pt 2 we covered setting up supplier and employee bank accounts on their cards. Here we look at the last steps.
Note for employees – you need to change their pay method to Bank (Online).
Third – Process Transactions and Create Online Banking File
This involves processing transactions as normal. QuickBooks will identify payments set up for banking online and have those ready to include when creating an online banking file.
Create an online banking file:
- Go to the Online Banking Centre. Go to Banking menu and click Online Banking Centre.
- Scroll to the section To Bank
- Choose the date you want the payment to be made, using the calendar from the Date to be Processed field.
- Enter a payment description. If no payment description is entered, a description of “payment” will display in the ABA file by default.
- Select payees from the list. Each payee must have a bank account defined for them under their employee or supplier record. This includes details for Bank Account Name, Number and Branch Code. In addition, employees must have an employee number.
- Click Preview ABA File if you wish to review the ABA file before creating it.
- Click Create ABA File. QuickBooks displays the standard Windows Save As dialog box with *.ABA entered in the file name.
- Enter a name for the online banking file (leaving the .ABA) and choose a location to save it. QuickBooks provides a default folder within the installation directory called Export Files/ ABA Files. You may choose to save the ABA file in this directory, or in any other directory of your choice.
- Click Save.
- Your ABA file is now ready for upload to the relevant financial institution.
TIP: This will upload Quickbooks ABA files directly from the cheque account. The downside is that the bank account in QB shows every transaction in the ABA file and not just the total. as appears on the bank statement.
Instead you can use a clearing account and it works well. I set it up in the chart of accounts as a bank account using the “actual” bank account number.
When I pay bills I select “online” and select my eft account to pay the bills out of.
Then, I create an aba file, etc.
Then, in QB, transfer funds from your “actual account” into your eft account. So, when you do your bank rec, only one credit will show up in QB (to match with the one debit on your bank statement).