Recording a miscellaneous cash payment
Helpful Hint!
If you are completing our software practice set,
you use the Spend Money window in the Banking Command Centre to record
cheques paid for purchases of non-inventory items or services.
Payments to inventory suppliers are recorded in the Pay Bills
window through the Purchases Command Centre. For instructions, see the
Settlement of an accounts payable
section in this learning centre.
Businesses sometimes purchase items or need to make a payment for
services to suppliers that the business does not deal with regularly. In such cases,
the business may record the miscellaneous cash payment without having set up a card for that payee.
If you are completing
our software practice set, you are asked to
enter those miscellaneous cash payments into the Spend Money window in the Banking Command Centre.
Your MYOB software will then
use the information saved in that window to record the journal
entry to the cash disbursements journal and post the transaction to
the appropriate accounts.
This topic explains where and how to
record a miscellaneous cash payment into your MYOB software.
To record the miscellaneous cash payment, open the
Banking Command Centre and click Spend Money to open the Spend Money window.
This opens the Spend Money window where you are able to enter the details of the payment.
The following screenshots and reference table show step-by-step instructions on
how to enter a miscellaneous cash payment into the Spend Money window.
Note that each step is assigned a reference number to help you identify the
appropriate field or icon in the screenshots.
The Spend Money window with reference numbers
| Step |
MYOB software field or icon |
Action |
 |
Selecting the account |
There are two options to select the general ledger account from which the payment will be recorded.
Pay from Account:
If the payment is to be made directly from a bank account, such as for a cheque or credit card payment,
select the Pay from Account option.
Then click the search icon to open the Select from List window where
you can select the general ledger account
that records payments from that
bank account.
If you are completing our software practice set,
for miscellaneous cash payments that the business pays by cheque,
you are asked to select the
Pay from Account option and then select the Cheque Account.
Group with Electronic Payments:
Select this option if you are going to include this payment with a group of electronic payments.
Once all electronic payments have been recorded in the Spend Money window, you can then use the
Prepare Electronic Payments window in the Banking Command Centre to make the electronic payment.
If you are completing our software practice set,
you are not required to make electronic payments.
|
 |
Tax Inclusive |
If the cash payment includes tax, leave this box ticked. Otherwise click the box to remove the tick.
|
 |
Cheque # |
Accept the cheque number your MYOB software
automatically assigns to this cash payment or enter the cheque
number you wish to use.
|
 |
Date
|
Enter the date of the cash payment.
|
 |
Amount |
Enter the full amount of the cash payment, including tax if applicable.
|
 |
Card |
If you have set up a card for this payee you can use the search icon to select the payee from the
list. Otherwise, leave this field blank.
|
 |
Payee |
If you selected a card in the previous step, your MYOB software automatically
populates this field with the name and address of the payee you selected. If a card has not been
set up for this payee and you left the Card field blank, you need to enter the
name and address details of the payee into the Payee field.
If you are completing our software practice set, you are not required to
enter the address of the payee into this field. You only need to enter the name of the payee.
Note that the Payee field is not displayed if you selected Group with Electronic Payments.
|
 |
Memo |
Type in a description of the transaction or any other relevant information.
|
 |
Acct # column
|
Type in the account number of the account to be debited for this transaction.
Alternately when you select this
cell, the search icon appears where you are able to select the account
using the Select from List window. Click the Use Account button once you have made your selection.
|
 |
Name column |
When you select the account number, your MYOB software automatically populates this field with the name
of the account to be debited in this transaction. Read this name to check that you have selected the correct
account.
|
 |
Amount column |
Your MYOB software automatically populates this field with the amount paid,
including tax if the Tax Inclusive box is ticked.
You can either accept this amount
or manually alter it if required.
When the transaction is recorded, your MYOB software will automatically allocate the
amount excluding tax to the account selected in the Acct # column and the tax amount to the appropriate
tax account as indicated in the Tax column.
|
 |
Tax column
|
Your MYOB software automatically populates this field with the tax code selected when the account was
set up. You can accept this tax code or manually alter it if required.
|
| Helpful Hint!
|
You can allocate the cash paid to more than one account by repeating steps 9 to 12 in a new row.
|
 |
Total Allocated
|
Your MYOB software automatically populates this field with the total amount allocated in the
Amount column.
|
 |
Tax
|
Your MYOB software automatically populates this field with the tax applicable to the payment.
Notice that this field is greyed out to indicate that the tax is already included in the
Total Allocated amount.
|
 |
Total Paid
|
Your MYOB software automatically populates this field with the amount recorded in the Amount
field toward the top of the Spend Money window.
|
 |
Out of Balance
|
This cell reports the difference between the amount shown in the Total Paid field
and the amount displayed in the Total
Allocated field. Check that the out of
balance amount is $0.00 otherwise you will not be able to record the
payment. If you have just entered an amount in the Amount column or the Amount
field, you may need to click out of these cells before your MYOB software recognises
the amount you have entered into those fields and automatically updates the Out of Balance field.
|
 |
Record
|
Check that the details entered into the Spend Money window
are correct. Then, click the Record button to journalise the cash
payment and post the transaction to the applicable accounts.
|
Helpful Hint!
If you are completing our software practice set,
you may wish to check that the payment has been recorded in the accounts. To do this,
from the Banking Command Centre:
- Select Transaction Journal.
- In the Transaction Journal window, click the Disbursements tab.
- Enter an appropriate date range in the Dated From and To fields.
- Find the transaction in the list to view the accounts debited and credited in the transaction.
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