Payment Account Setup

Payment Account Setup

Payment accounts in EquiBillBook are used to track and manage payment transactions for customer and supplier payments. This guide will help you understand how to set up and configure payment accounts in your system.

Understanding Payment Accounts

Payment accounts are linked to your chart of accounts and are used to:

• Track payment transactions from customers
• Record payments made to suppliers
• Monitor payment account balances
• Generate payment account reports and statements
• Link payment transactions to specific accounts in your chart of accounts

Prerequisites for Payment Account Setup

Before setting up payment accounts, ensure you have:

• Created your chart of accounts with appropriate account types
• Set up bank accounts or cash accounts where payments are received or made
• Configured account types and sub-types in your accounting setup
• Access to the Accounts module with appropriate permissions

Setting Up Payment Accounts

Payment accounts are typically created as part of your chart of accounts setup. To set up payment accounts:

1. Navigate to Accounts module from the main menu
2. Go to Chart of Accounts or Account Types
3. Create accounts that will be used for payment transactions:
   • Cash accounts (for cash payments)
   • Bank accounts (for bank transfers, cheques, online payments)
   • Payment clearing accounts (if using payment clearing mechanisms)
4. Ensure these accounts are properly categorized under appropriate account types (typically Current Assets for cash and bank accounts)
5. Set opening balances if required
6. Activate the accounts to make them available for transactions

Linking Accounts to Payment Transactions

When recording payments, you can link them to specific payment accounts:

• Customer Payments: Link to the account from which payment is received (cash, bank account, etc.)
• Supplier Payments: Link to the account from which payment is made (cash, bank account, etc.)
• Payment Accounts: These accounts track the flow of money for payment transactions

Payment Account Configuration

Configure payment accounts with the following settings:

• Account Name: Use clear, descriptive names (e.g., "Cash Account - Main Office", "Bank Account - HDFC Current")
• Account Type: Typically categorized under Current Assets
• Account Code: Assign appropriate account codes for easy identification
• Opening Balance: Set the opening balance if starting mid-period
• Branch/Location: Assign accounts to specific branches if using multi-branch setup
• Status: Ensure accounts are active to enable them for transactions

Best Practices for Payment Account Setup

• Create separate accounts for different payment methods (Cash, Bank Transfer, Cheque, Online Payment, etc.)
• Use descriptive account names that clearly indicate the purpose and payment method
• Maintain separate accounts for different bank accounts or cash registers
• Set up branch-wise payment accounts if operating multiple locations
• Regularly review and reconcile payment accounts with actual bank/cash balances
• Keep payment accounts organized under appropriate account types in your chart of accounts

Accessing Payment Account Reports

Once payment accounts are set up, you can:

• View payment account transactions through the Payment Account Report
• Generate account statements for specific payment accounts
• Track payment account balances and transaction history
• Link payment accounts to customer and supplier payment transactions

Related Topics

• Payment Account Transactions - Learn how to view and manage payment account transactions
• Payment Account Reports - Understand how to generate and analyze payment account reports
• Chart of Accounts - Learn more about setting up your chart of accounts
• Journal Entries - Understand how payment accounts are used in journal entries