MYOB Advanced Training - Finance - Setting up Banking in MYOB Advanced

The Banking module of MYOB Advanced helps you manage cash flows and forecast your cash position at any time and in multiple currencies. By using the Banking module, you can track a wide range of cash transactions and perform bank reconciliations quickly and easily.

Banking is a dedicated module for operations that involve cash. In the Banking module, you can:

1. Maintain cash accounts.
2. Enter cash transactions as cash entry documents from which the system automatically generates the appropriate finance batches.
3. Enter funds transfers through documents from which the system automatically generates the appropriate finance batches.
4. Manage payment methods used in the Receivables and Payables modules.
5. Complete many other Banking tasks which include, obtaining cash flow forecasts, completing reconciliation of bank statements, managing bank deposits and reclassifying unknown payments. (These concepts are outside of the scope of this course.)

Setup

Cash Management Preferences

Every module in MYOB Advanced Finance, Distribution and People suites require the configuration of preferences.  Preferences are usually configured by your implementing consultant after reviews of your business processes.

You should only make changes to the Cash Management Preferences after consulting with your Business Partner.

Payment Methods

Payment Methods are linked to cash accounts. MYOB Advanced has default payment methods, some of which hold the settings used when a bank transfer file is generated.

In MYOB Advanced you can use the same Payment Method for Receivables (Customers) and Payables (Suppliers).

Entry Types

While Payment Methods record the movement of cash through the Payables and Receivables modules, Entry Types are used to record the movement of cash transactions in the Banking module.

When adding an Entry Type, you specify which module is to be updated. There are three entry types to choose from;

CA entry type is used for recording transactions that affect the balance of Finance accounts only. Transactions such as Bank Interest or Charges.
AP entry type will record a prepayment in the Payables module, if the transactions is a disbursement; or a supplier refund in the Payables module, if the transaction is a receipt.
AR entry type will record a payment in the Receivables module, if the transaction is a receipt; or a customer refund in the Receivables module, if the transaction is a disbursement.

Bank Transaction Rules

You can set rules to create new payments for imported bank transactions when matching documents are not found.  This topic is not part of the scope of our training.

Bank Reconciliation

MYOB Advanced provides functionality that you can use to easily perform reconciliation of bank and cash accounts. To facilitate reconciliation with bank statements, you can import multiple statements from Excel files or files in OFX format, and match transactions manually or automatically by using adjustable criteria. Also, while performing reconciliation, you can apply payments to the documents available in the system.