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Payroll Processing

Do you need assistance with processing payroll?

Here’s a step-by-step guide to help you through the payroll process.

How do I change the weekly hours per pay period on the Employee Card Information?

1. Go to the Card File Command Centre, click Card File then click Employees.
2. Click the arrow next to the first active employee.
3. Click Payroll Details. The following window appears:











Buttons for different sections of employee information appear along the left side of this screen.

4. Click Wages.  Your window now looks like this:











5. Enter the standard number of hours worked by the employee each week into the Hours in  Weekly Pay Period field.

By default, the value that appears here is the same as what had been entered into the Number of Hours in a Full-Time Work Week field of the General Payroll Information window. To access this window go to Setup and choose General Payroll Information.


How do I update the employee’s standard payroll details?

Click Standard Pay along the left of the above screen. Your window now looks like this:










A figure is automatically calculated and displayed for the Base Salary/Hourly pay category. This calculation is based upon the value entered into the Hours in Weekly Pay Period field of the Wages tab shown on page 1 and the Annual Salary/Hourly Rate information found in the same section.

Where required, this value can be overwritten within the standard pay information. It can also be overwritten on an individual paycheque when processing a pay batch. This is discussed in more detail further below.

Once you have updated this information on all active employees, you are ready to perform a pay run.

How do I process ordinary pays?

This Process Payroll sequence of windows guides you through the process.  The first step is to select the pay period or pay frequency you wish to process. For example, employees that are paid weekly or employees that are paid monthly.











1. Go to the Payroll Command Centre and click Process Payroll. Once you click OK to the Payroll Enhancements message, the following window appears:

2. To select the pay frequency to process, click the frequency selection field to the right of the Process all employees paid button and select the relevant option.







3. MYOB will automatically generate Paycheques for employees paid under the selected frequency based upon the standard pay information entered in their card as shown page 2. The dates in the Pay period start and Pay period end fields will print on the employee’s pay advice accordingly.











4. Once the correct pay frequency and Pay Period dates appear, click Next.
You now proceed to the Select & Edit Employee’s Pay section of the process shown here.

If required, individual pay cheque details can be changed prior to recording the batch of standard pay cheques.  To display and modify the details of an employee’s paycheque, click the arrow next to their name. Click OK to save any changes.

Once you are satisfied that all details are correct, click Record. The following message appears:












If you want to prevent this message from appearing in future, mark the box labelled In the future, do not show this message prior to clicking continue.

Click Continue to proceed.

A message confirming the number of cheques recorded will appear. Click OK.

You have now come to the Process Payments section of the sequence and the following window appears:










Your MYOB Software allows for employees to be paid by three methods:

  • Cheque
  • Electronic Payment
  • Cash

It is possible to process all three payment methods from this window by clicking the appropriate button.

You may print cheques, prepare electronic payments or record a spend money transaction to reflect that employee has been paid in cash.

Once you have completed processing payments, click Next to proceed to the Print Payroll Advice section, the last step in the sequence.

From this window you may display and print the Payroll Advice report or print any customised pay slips you may use.










Once you have printed the Payroll Advices, click Finish to conclude the process.


What is electronic banking in MYOB?

Electronic banking is a process by which your MYOB software creates a file that is known as an ABA file. The content of this file includes:

  • Your bank account details.
  • Your supplier’s / employee’s bank account details.
  • The payment amount.
  • Other ancillary information such as the payment date and the statement text.

The content of the ABA  file is usually imported into the software supplied to you by your bank. The bank software is then used to process the payments. The ABA file is named after the Australian Banking Association (ABA) who, in consultation with the major banks, developed the file’s field specifications.

How does electronic banking work?

Firstly, the journal postings of bank transactions are:

  • Withdrawal – Posts a Credit to the Cheque account.
  • Deposit – Posts a Debit to the Cheque account.

When a payment is selected to be paid electronically, the payment is withdrawn (credit) from a Chequebook clearing account. This clearing account is known as the Linked Electronic Clearing Account. As more and more payments are designated to be paid electronically, the balance of the Linked Electronic Clearing Account decreases (has a credit balance).

Once the payments are processed using Prepare Electronic Payments, MYOB records a single withdrawal from your Cheque account which will correlate with your bank statement. And, a deposit (debit) is posted to the Linked Electronic Clearing Account, offsetting the payment withdrawals. After processing all your electronic payments, the balance of the Linked Electronic Clearing Account should be zero.

How do I setup my company data file for electronic banking?

Setting up electronic banking in MYOB is simply a matter of:

  • Setting up the Linked Electronic Clearing Account.
  • Entering your business bank account details.
  • Entering your supplier and employees? bank account details.

Please note: Customers (customer refunds) cannot be paid electronically.


Step 1: Setting up a Linked Electronic Clearing Account

To create and link the Electronic Clearing Account:

Go to Accounts choose Accounts List click the Assets tab then click the New button.










Choose Detail Account in the top left and Bank in the Account Type drop-down list.

Assign a number to the Account. Make sure however that you select an Account Number that best suits your Accounts List. Name the account ‘Electronic Payments Clearing’ or another appropriate name of your choice.

Link the electronic clearing account: Go to Setup choose Linked Accounts then Accounts & Banking Accounts.

Enter the Electronic Clearing Account in the Cheque Account for Electronic Payments field.

Please note: In current MYOB programs, the Linked Electronic Clearing Account is automatically setup when a new company data file is created. You can check this: Go to Setup choose Linked Accounts then Accounts & Banking Accounts. Electronic banking will be setup if there is an account, other than your Cheque account, in the Cheque Account for Electronic Payments field.


Step 2: Entering your bank account details

Your bank account information is entered at the ledger account level. By doing this, MYOB allows you to have more than one chequebook account with electronic banking privileges.

Go to Accounts, click Accounts List then click the Assets tab.

Click the zoom arrow next to your cheque account.

Click the Banking tab of the Account Information window.










Mark the I Create Bank Files (ABA) for This Account checkbox.

The window below shows the Bank Information window.

Please note: The Direct Entry User ID is a code that is issued to you by your bank. The Self-Balancing Transaction option refers to the ABA file format. Your bank will be able to advise you which format is compatible with their system.











Step 3: Entering your supplier and employees’ bank account details

To enter a Supplier’s banking details:

  • Click Card File then Cards List then click the Supplier tab.
  • Open the Supplier’s Card, click on the Payments Detail tab then enter their bank account details.
  • The window below shows the Supplier’s Card banking details.












Employees’ banking details

Similar steps are used to enter the Employee’s banking details. Open the Employee’s Card then click the Payment Details tab. Enter the employee’s banking details then click OK to close their Card.


How are payroll payments processed electronically?

Processing payments in MYOB is a two step process: entering the payments and then processing them.

Step 1 – Entering a payment which is to be processed electronically

Payments to be processed electronically are entered using the same steps as conventional payments. The only difference is that when in Pay Bills, Pay Employees or Spend Money, select the Group With Electronic Payments option (located at the top left corner of the transaction window).

Selecting this option will withdraw the payment from the Linked Electronic Clearing Account and list the transaction in the Prepare Electronic Payments window.


Step 2 – Process the payments

Processing the payments will:

  • Withdraw the payment total from your Cheque account, and deposit it into the Linked Electronic Clearing Account.
  • Create the ABA file that is needed by the bank.


To process the payment:

Click Banking then Prepare Electronic Payments.

Enter your cheque account in the Pay From Account field.

Select the relevant payment type in the Select Payment By field.

Enter the other payment details as needed.

Place a check mark in the Remittance field against the payments to be processed.

Check all the payment details then click on Bank File.

The window below shows the Prepare Electronic Payments window with three payments selected for processing.








Please note: The Bank Processing Date is the date upon which the bank will withdraw the money from your bank account and transfer it to the payees’ bank accounts.

If the payment is post dated, MYOB will display an alert informing you to check your bank’s policy with regards to post dating electronic payments.

After clicking the Bank File button, read the displayed alert then click OK.

A standard Windows Save As dialogue box will now be displayed. Navigate to the folder on your hard drive into which you want to save the ABA bank file, and then click Save.
Please note: It’s important you know which folder the ABA bank file has been saved in.

Open your bank software and import the ABA bank file. Please contact your bank if you need assistance with this.

If you’d like any assistance with your payroll processing, please contact us!

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