How to correct an explained payment in imported bank statement (to show bank charges separately)

Just another quick question:

Once I'm done explaining my bank statement do I then need to create bills for my supplier, salary and loan receivable and payable payments? And how do I do this?

Thank you for your help.

Kind regards, Elena

Thank you for your quick reply.

I'm not sure I understand what you mean by multiple-line bills? Do you mean reoccurring bills? Can you please give an example?

Hello again,

Yes, I noticed it does that and I'm constantly resubmitting it.

On a different note, I also need to explain internal transfers in the same bank, same currency accounts (i.e. how do I explain an internal transfer from Bank X Eur account No. 01 to Bank X Eur account No. 02 ?).

Thank you for your help!

Kind regards, Elena

Thank you very much.

You're welcome.

Hi Elena,

I can definitely help with that. So, the best way to deal with this is if you go to the transaction in question and edit it you can add a transaction to the explanation. If you add a transaction of £50 going under bank charges that will correct the net total of your transaction. I've attached a screenshot to show how this is done on a test transaction for you.

As for the existing transaction, you can unexplain it and reexplain the transaction in this same way. I hope this helps.

Kind regards,

Hi Elena,

I can help with that too. You don't need to make bills and so on so long as you have explained your bank statement in full and that is ok. I would say though that if you want any multi-line bills you will need to make a bill first then link your bank statement import to the bill as doing it the other way will not allow for multi-line bills as they will have PAY reference codes as opposed to the PUR reference you get from bills.

Hi Elena,

I certainly can. So by multi line bills I mean bills with more than one line item on the same invoice. Please see the below screenshot.

Kind regards,

Hi Elena,

Yes, it is one bill with multiple charges. The example I have given would be 1 payment for 5 services grouped under 1 invoice/bill, not 5 separate invoices but you do have the right idea. 1 payment for social insurance and PAYE would also be separate bills so different.

Hi Elena,

Yes, you don't need to create any bill for this as you can allocate the payment to each of the 5 individual invoices within Clear Books.

Kind regards,

Hi Elena,

You're welcome.

Kind regards,

Hi Elena,

it is just a warning to ensure you are not allocating the charge to the wrong account. If you simply resubmit the charge again it will go through no problem. Alternatively you can try to allocate it to bank charges instead and I believe you won't receive the same error.

Kind regards,

Hi Elena,

If you have both of these account created in Clear Books you can do this via the use of the money out feature. So you would make a money out transaction from Bank 1 and explain it as going to bank 2. This should solve the issue.

Kind regards,

Hi Paul,

You are correct. In this situation it is always necessary to have an invoice (or bill depending on the nature of the transaction) to allocate and split the payments to. 1 payment can still be allocated to the 5 individual bills as it is still possible that multiple bills/invoices could be paid in bulk.

Hi - just a quick query on the "So if I have a payment which covers 5 different invoices (not one invoice with different charges) then I don't need to create any bills?"

Under MTD I think businesses will have to create the individual bills, ie you can't just record a single PAY representing the 5 supplies, what do you think?

Hi

I see. Thank you for explaining this.

Kind regards, Elena

Hi

I now have a question about the prefixes on the bills: PUR, PAY and REC. How does the system know which prefix to allocate when you add a transaction. For example for most of the transactions I added with the same account code when explaining payments, the payments were allocated the PUR bill but now I got a PAY bill and I don't understand why - the payment was explained under the same account code as the previous ones.

Regards, Elena

Hi Elena,

That is exactly right! i'm sorry I didn't actually make it clear that it would be via a transfer. That is the correct way of doing this though so that is absolutely fine.

Hi

Thank you. If I do it through a transfer when explaining in an imported statement this should also be ok too right? So instead of adding it as a transaction I explained it as a transfer from one account to another (both accounts are in clearbooks).

Any complications if I do it this way?

Regards, Elena

Hi

I have another question related to bank charges. I keep getting the below message when ever I try to add the transaction for the bank charges. I don't quite understand why.

Thanks a lot for your help

Kind regards, Elena

Hi

So if I have a payment which covers 5 different invoices (not one invoice with different charges) then I don't need to create any bills?

Kind regards, Elena

Hi Ok, so its one bill but with multiple charges. But I guess if its under the same supplier then I would have explained the payment for it under the same account or I could just split the transaction as you explained above for bank charges. That should be ok right?

Would what you are saying about multiple-line bills apply in the following situations:

1 payment covering 5 invoices for various legal services 1 payment covering social insurance and paye (withholding tax) salary charges

Kind regards, Elena

Hi

Thank you very much. Your explanation was very useful. Its very clear now.

Kind regards, Elena

Hi Elena,

These prefixes are in relation to how they are created. PAY and REC are created by the import tool, while PUR are created from purchases - bills. They do not differ very much. The main difference is that PAY and REC can never have an unpaid status while PUR can. These prefixes do not relate to the account codes as they can all be allocated to the same relevant account codes so you needn't worry too much about them. I hope this helps.