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In the invoice for Banking

[Music] we continue to expand our knowledge about the bank transactions in our business and in this video I'm going to show you how to allocate and record customers money received in your businesses bank account with sites online accounting in my previous videos I've shown the various ways of getting Bank transactions into the site's accounting system we looked at automatic Bank feeds PDF conversions ofx and CSV file Imports of bank statements to site accounting in this video I'm dealing with the next step after you have imported all of those Bank transactions this step is the allocation of transactions to the correct account I'm going to show you how easy it is to deal with bank deposits or money received inside I'm going to reveal how to handle Bank payments in later videos if you follow the steps and the tips that I'm going to show you you will find that doing the important task of processing customer Bank receipts is actually easy to do with sites let's start shall we tank transfers have become the norm in business many if not most of your bank receipts are usually from customers paying you in the cashless environment we are living in now by far if not all customers make payments by some sort of a bank transfer banking checks have become basically redundant and abnormal for most businesses I came across these days receipts are instant and for that reason I prefer to do only one transaction and that is to allocate money received directly from the bank by allocating directly from the bank I skip a step of recording a receipt and seeking to match it to a bank transaction the bank deposit or transfer amounts imported from the bank is the receipt not all customers pay exactly an invoice amount as you will see in my example Sun by a portion of an invoice some by a previous month's balance some pay a rounded amount the list of amounts paid goes on and on matching the customer Bank receipts at the initial stages of processing Bank receipts which some accounting softwares require is a waste of time sites makes provision for matching any receipt to a specific invoice a balance or a group of transactions but that happens at the end of the transaction line and not at the initial stages of processing the transaction like other accounting software I came across this little distinction is important because this makes the processing directly from the bank data possible inside which definitely saves time and results in efficiency and accuracy how it works in practice will be clear later in the video when you see how I process the bank recedes insights accounting if you have a cash register in your business or cash receipt book the process will be totally different than what I'm going to show you cash registers Etc will be dealt with in future videos here I am logged into my demo sites account and I'm here in the workspace area of sage to find the bank transactions from this area you search for The View Bank transactions Widget icon and here it is Click anywhere on the widget which takes you directly to banking it is important to choose the specific bank account that you want to process click on the empty field next to bank or credit card a list of all your bank accounts will be displayed select the relevant Bank once you have selected the bank account each balance will be displayed and also the number of transactions that needs to be reviewed next to it reviewed in this context means to allocate transactions to an account the transaction rows are organized in field columns that look like a spreadsheet the layout of the banking screen with the bank transactions can be amended ing to your preferences in future videos I will show you exactly how that is done but for now we're going to roll with this layout as an example the current column headings of transactions from left to right are starting with the date of the transaction the payee the transaction description which comes directly from the description of your bank the type of transaction where you want to allocate to you have five options to choose from an account a customer A supplier transaction a transfer between bank accounts and a vat payment or receipt allocation the next heading is making a selection from a drop down list to select and categorize your transaction a transaction reference has a unique identifier of the transaction which is normally created automatically during the bank import process choosing that type for each transaction if your business is that registered then the bank amount spent or received and the RAC tick box is the shortened for reconciled or not lastly the action buttons which will be discussed later in this video while I am doing the processing for the purpose of this demo I only imported Bank receipts and not Bank payments so that we don't get confused between the payments and receipts but it is important to note that you can just as easily sort your bank transactions by the received column which will then group all your bank receipts together as I scroll down through the transactions you can see that certain transactions have an orange unallocated income description and others are typed in Black font the black font indicates that these transactions have already been allocated since I have not done any allocations yet it can only mean that I have created a bank allocation rule previously a bank rule does a number of things but most important ensures the automatic allocation of a receipt based on the identification criteria of the rule such Bank rules are a massive Time Saver that can elevate your efficiency to the next level in an ideal size world you want to create rules for each transaction by creating rules all your receipts are allocated automatically during the bank statement import phase it is really easy to create a rule and I'm going to show you how it is done later in the video and you will see exactly how Bank rules makes accounting easy I've reached the bottom of the page and you can see that there are two pages and 99 transactions that need to be dealt with you have three buttons a save button I use the save button often because I hate to redo work which can happen if the internet connection drops and I lose connection the mark selected as reviewed button this button moves selected transactions from the new transaction space where we are right now to the review transactions area Mark always reviewed which will move all the transactions to the reviewed space and it is not something you want to do when you still have unallocated transactions let me explain the new and review transactions a bit more and also give you a handy tip I use these two different tabs to organize and manage my work we are now in the new transaction screen and in my mind it means that I must look at these transactions ensure that I get allocated correctly perform certain actions on them like configuring a rule that will help me in future and once I'm done with the transaction I move it to the review transactions area where they are stored in kept and I have thus completed my work on them once all the transactions in the new transactions tab have been dealt with and moved to the reviewed I'm finished with the process as we progress through the video you will see how I apply it practically and it will make complete sense to you let's start processing these transactions in the first transaction line we received 180 Rand in our bank dated 28 June 2022 from CT tour I'm going to select customer and the type this tells the system that I will need information about customers accounts in the selection drop down list I now need to find the CT tour customer account and select it the reference given by the bank import is fine to identify the transaction a receipt from the customer should be a novat transaction because that is payable on the invoice and not also when a money is received from the customer the downward Arrow opens more options on a transaction and I use it mostly to account for discounts allowed and to allocate analysis codes if applicable in this example there are free analysis codes departments where I select the surfboards area where I select Cape Town project I'm not going to use it as there are no projects added I could have also expanded on the transaction and added comments if I wanted to the tick mock under the RAC which is the abbreviation for reconciliation means that the transaction reconciles or agrees with the bank statement as this was a bank import and not a manual entry it should be ticked the next icon with the three dots is where you can set up a bank rule year and now while you have the transaction information on hand next to the rule icon the left and right arrow is to split one receipt amount into different amounts and then allocate the separate parts to its different accounts an example of this is where a holding company pays one amount for its different branches and you have to split the receipt among the different customer accounts then you can add an attachment to this transaction line the next icon is to allocate the receipt to a customer invoice or balance in other Cloud accounting programs this function is called matching the receipt to the customer invoice the green plus icon is to add a transaction line below the one you are currently working in the red minus icon which is the last action button of the transaction line function is to delete the whole transaction entry from the bank register I hope you have noticed the description of each button appearing as a guide as I was hovering over each button I am first going to see if I can allocate this receipt to an existing invoice before I do anything else by clicking on the allocate icon which is the arrow line going up and down when I click on it invoices on this particular customer account will appear there is no invoices to allocate this receipt to not under the paid invoices or any unpaid invoices as you can see this is strange and it means it is either an error or a prepayment from a customer I'm going to save this action although I did not perform any allocations normally if I encounter an abnormality like this I quickly investigate it further which is something I can easily do in Sage for that I'm going to view this customer's Ledger account I love customer ledgers because they are packed with all the information you need I was dumb struck to find that some of Sage's competitors are unable to give you a proper customers or suppliers ledger to find a customer's Ledger you go to the top navigation bar and the customers down to reports to the right to customer transactions and down to customer transactions which is The Ledger in accounting language and click on it in the customer transactions report you can specify the day trains and select customers or a range of customers or select a particular customer that you need to detail transactions on I'm going to choose and select CD tour and view report the only transaction displayed is the receipt I've just allocated I'm going to assume that this is a prepayment for a sales order this example shows you how easy it is to deal with prepayments by customers and to have it reflected on their account I've dealt with a different Cloud accounting software where you could not record deposit from a customer without an invoice the prepayment had to be allocated to a temporary account and could only be cleared once an invoice had been created with one or two invoices it is fine but when a business requires a deposit before an order can be executed it is a nightmare to clear that temporary account those clients have since switched over to site accounting once they have seen how prepayments are easily dealt with in Sage let's go back to allocating Bank transactions and this time we use the route from the top navigation bar to banking down to transactions to the right to Banking and click on it once back at the bank transactions the first thing I want to do is to set up a bank allocation rule in order to do that click on the free bullet point icon the bank statement mapping rules menu will open in the first field the reference used by your customer when making the deposit to your bank is automatically reflected this description will be used in future by Sage as identifying and linking a bank transaction to a particular customer's account I would encourage you to see text that are repeated and used by your customer as reference over and over when making a payment to you for that reason an invoice number will not work because each invoice gets a unique invoice number and there is no set rule that can be linked to a particular customer in this example I only use a customer name as a reference a unique customer code could have worked as well the second and third fields are optional in the second field you can add the payee name for example when it is different from the customer's account name if you fill in the Third Field it will overwrite the description that appears in a bank transaction line I didn't use this function a lot but let's fill it in to show you the effect and maybe you can use it in your own environment to save the bank rule setting click on save you can see the payee field is now filled in and the description field has changed the payee and description Fields will always be applied in future when the bank rule picks up a transaction from this customer when a bank rule is activated and applied to a transaction that three bullet points icon turns orange let's see if any transaction has now been allocated via the bank rules mapping to the current bank transactions yes there it is you can see the lines font turned blue as well we have now identified and allocated all the money received in the bank from City Tour automatically by setting up the rule which will be applied in future and making our work and time spent allocating Bank transactions less what you see here is letting automation help you make accounting work quick and easy I'm going to scroll back to the top to allocate the next transaction I follow the same procedure change the type of transaction to customer search and select the customer's account complete the analysis code allocate the transaction to an outstanding invoice like with the previous transaction there are no invoices to allocate this receipt against my fifth step is to set up the bank rule as a side note be aware that Sage calls this process in the first field to enter the text to map the description in your bank statement to a customer account I'm going to fill in the bye field and the description field as well and save the bank rule mapping with the third transaction line I'm going to follow the same process the only difference is that with this receipt there are invoices against which the receipt can be allocated to for that I'm going to click on the allocate icon that can be found between the attachment and the green plus icon under the actions column heading now you can see how outstanding invoices are displayed in the allocation menu I find the invoice number that matches my receipt and click on the allocate checkbox then press save as with the previous transaction I'm going to repeat the process of setting up the bank statement mapping rules but this time I'm not going to complete the payee and the description Fields because I'm happy with the bank statement descriptions and press save I'm going to Fast Track the recording and process all the receipt transactions when I get to the section where I'm performing a new function I'm going to slow down and explain what it is all about you can follow along as I work through this foreign [Music] I'm going to change the bank statement mapping Rules by changing the payee to cash sales and the description to till 1. to split the receipt click on the icon with the left and right arrow next to the rule icon a sub highlighted screen will open in the first line the existing transaction amount is reflected complete the second line for example this amount must be split between cash and breaking wife's customer as you type the amount in the field you will see the payment total changes as well as the remainder which is there to help you to balance the amount sites will not allow a split to be saved unless it balances to the amount received in your bank I need to change the cash amount to 500 Rand cash received the reminder is zero and the payment total agrees to the split total and now I can save the split transactions you can see that the type and selection Fields Now read split and that is how you will identify any split transactions if you review your bank transactions if you ever need to add a transaction manually within your set of transactions you can do so by clicking on the Green Plus button next to the allocate transaction button sites will add an empty line below the current line which you can type and complete manually firstly I'm going to fill in the date you can also copy data from other fields I'm copying The Cast Sales from the previous page transaction line with command C and paste it with command V and I'm doing the same with copying the till 1 description as my transaction description the type is customer again select the cache customer copy and paste the reference from above and change the last numbers enter the receipt amount match the receipt to an invoice in the allocate invoice screen I'm matching a 500 Rand receipt to 287 Rand 50 invoice as I'm clicking to match Sage displays the portion of the received amount that still needs to be allocated at 212 Rand 50 in the unallocated amount field the amount received column displays how much of the receipt has been allocated to a particular invoice click on save to save the allocation after creating a few Bank mapping rules you will find that more receipts have been automatically allocated to customer accounts as revealed by the blue font transactions in my case I'm going to continue with allocations and mapping [Music] once you have completed Bank rules you are basically left with checking and matching the receipt by allocating it to outstanding invoices foreign the video I explained about the mark selected as reviewed option you can also find the same action button at the top of the section as I click on the checkbox next to the date of a transaction The View buttons above the column headings become visible I'm selecting all the transactions I've completed and want to move to the reviewed section I work my way all the way to the bottom of the page and then click on Mark selected as reviewed you can see that although I have marked all the transactions as reviewed why are there still transactions that are completed and allocated as we can see by looking under the selections column it is because as the transactions are marked as reviewed and moved over to review transactions the transaction grid is filled with transactions from other pages I carry on with allocating and matching Bank receipts until all the transactions left are unallocated income thank you foreign [Music] I'm going to carry on with the prices of allocating Bank receipts to your customer accounts [Music] foreign [Music] feature of sight is the ability to sort the banking transactions by column heading to show you the effect of that I'm sorting the data by the description column you can see that all the different receipts from a customer are grouped together based on the bank description as soon as the bank mapping rule is applied all the transactions for that particular customer are allocated have a look at the bank rule effect on inner pool customer account I'm doing the same bank rule with the next customer receipt from Jaws to show you the effect again I'm also using the top Mark as reviewed button to move the seeds that I'm finished with I'm going to repeat the process with the rest of the customer receipts [Music] foreign [Music] [Music] foreign [Music] here we are at the last group of customer transactions that I'm finishing off with you can perform an action on all the transactions in the new transaction screen by scrolling up to the top of the screen next to the date in the headings bar click on the action stick box and all the transactions are selected then I can mark all the transactions as reviewed by clicking on the button there are no Bank receipts left to process and I click on the save changes let's take a peep at the completed Bank receipts processing by clicking on the review transactions this is where you will go in future if you need to look at how transactions have been classified in the bank and in case you need to change something you can refine your search for transactions by using the date field to display the transactions for a particular period defined by you I'm going to search for all the transactions from the 1st of July to the 31st of July and click on refresh you can also refine your search by just one day and that is the easiest way to find a bank transaction when you know on which day it occurred my work here is done and so will be yours after completing the processing of customer Bank receipts and clearing all the bank receipts under the new transactions Tab In Site accounting if you have not worked with site accountant before I hope that this video has given you a fair idea of what processing customer Bank receipts in such accounting is all about and if you are an existing site user maybe you have picked up a few shortcuts and tips to improve your efficiency and making admin tasks please thank you for watching and if you like the information please subscribe to our channel to be notified of our next video