Australian Payroll requires EFT (Electronic Funds Transfer) to be setup in COINS OA for employee wages.
Organisations may use a single bank account for wage payments or a select number of bank accounts for payments. This document will outline details concerning what is required to set up each method successfully and implement EFT payments for Australian Payroll.
Single Bank Account
The following parameters are when only one wages bank file is to be generated via payroll.
Parameters
| Full Path | ID | Description | Example Value |
CB | Configuration > CB Parameters | EFTCODE | Bank code to be output on EFT file | ANZ |
PR | [pay frequency] Payroll > Setup > Parameters | BACSMED | The medium for EFT files | 6 |
PR | [pay frequency] Payroll > Setup > Parameters | BACSUER | Banks customer ID and company name (comma separated) | 123456,COINS TEST |
PR | [pay frequency] Payroll > Setup > Parameters | BACSFILE | The full pathname for the EFT file | $BASE/var/home/[USER]/[KCO]_[DATE=YYYYMMDD]-eft.aba |
PR | Global Setup > Parameters | CASHBACS | Cashbook posting for pay type EFT | One |
PR | Global Setup > Parameters | CASHBANK | use bank account 01 in company bank accounts for EFT | 01 |
PR | Global Setup > Parameters | CASHBOOK | Post net pay to cash bank | Y |
SY | Company Setup > Configuration >Company Parameter | BACSDBLN | Whether to create a debit line in the EFT file to offset the credits | Y |
NOTE: EFT processing needs to be generated prior to printing payslips. Otherwise, the extra bank accounts for employees’ details will not show on payslip
2. Bank Account Setup
All company bank accounts used in COINS defined here. They identify the actual account with your bank and the General Ledger account codes which relate to those accounts.
Cash Book > Setup Maintenance > Bank Accounts
On opening the account, extra EFT details can be stored against each bank. For standard payroll EFT processing these should be blank for payroll.
3. EFT Output and Print
This will allow you to output EFT transactions processed in payroll.
4. Report Status
Report output will display for one company one Bank account all employee transactions processed in EFT file
5. File Output
Details on the aba file come from the parameter setting defined in 2.1.
Multiply Bank Accounts
Parameters
Before making any changes to Payroll parameters, be sure to make them Company Specific by selecting the parameter and using the ‘Choose Action > Create Company Specific.’
| Full Path | ID | Description | Value |
PR | [pay frequency] Payroll > Setup > Parameters | BACSMED | The medium for EFT files | 6 |
PR | [pay frequency] Payroll > Setup > Parameters | BACSFILE | The full pathname of the EFT file | $BASE/var/home/[USER]/[IBANBANK]-[KCO]_[DATE=YYYYMMDD]-eft.aba |
PR | Global Setup > Parameters | BNKONCHK | A comma-separated list of banks allowed to be entered for timesheets with a Pay Method of EFT | 01,02,03 |
PR | Global Setup > Parameters | CASHBACS | Cashbook posting for pay type EFT
| One |
PR | Global Setup > Parameters | CASHBANK | use bank account 01 in company bank accounts for EFT | 01 |
PR | Global Setup > Parameters | CASHBOOK | Post net pay to cash bank | Y |
SY | Company Setup > Configuration >Company Parameter | BACSDBLN | Whether to create a debit line in the EFT file to offset the credits | C |
NOTE: BACSFILE must include [IBANBANK] in path name for multiple banks.
NOTE: CASHBANK must have a default bank account, as this is used if the employee default is not set on ‘Employee Maintenance’
2. Bank Account Setup
All company bank accounts used in COINS defined here. They identify the actual account with your bank and the General Ledger account codes which relate to those accounts.
Cash Book > Setup Maintenance > Bank Accounts
Bank accounts used for EFT files will need to have ‘EFT details’ updated against each bank. If the same Bank User ID is used across all modules the select ‘Same User ID for All Modules’. This will allow a single field to be updated. Otherwise set Bank User ID for each module. For Australia ‘EFT Forms’ must be set to use media file ‘6’.
NOTE: SY/BACSDBLN must be set to ‘C’ which will use Cash Book EFT details when EFT files are generated.
3. Employee Default
Each employee is to be assigned a default payroll bank on ‘Employee Maintenance’ form.
Payroll > Employee Maintenance > Payment Tab
4. Timesheets
When a timesheet is entered for an employee, the ‘Payroll Bank’ will default from the ‘Employee Maintenance’ form. These can be overridden on timesheets; banks available from list are defined in the parameter BNKONCHK.
5. EFT Output and Print
This will allow you to output EFT transactions processed in payroll. Available with multiply bank account setup is a tick box ‘Use Bank Accounts on Timesheets’. By default, this box is selected. If not selected, new combo box of ‘Accounts’ defined on parameter BNKONCHK is opened.
When ‘From Bank Account’ is nominated the EFT process will update all timesheet bank accounts to use the account selected here.
6. Report Status
Report output will display for one company all the account transactions processed in EFT file for all banks processed.
7. File Output
The files generated by the EFT process will appear in the file path nominated on the parameter BACSFILE.
The aba file will use the parameters defined in Cash Book for EFT details.
PAYG processed via EFT
PAYG may be paid at the same time as wages otherwise COINS SureStart process will generate an Accounts Payable invoice for ATO supplier for PAYG payments to be process separately.
Payroll Parameters
Before making any changes to Payroll parameters, be sure to make them Company Specific by selecting the parameter and using the ‘Choose Action > Create Company Specific.’
| Full Path | ID | Description | Value |
PR | [pay frequency] Payroll > Setup > Parameters | PAYGByEFT | Send PAYG to be paid via EFT (yes/No) Blank means No | Yes |
PR | [pay frequency] Payroll > Setup > Parameters | PR-PREPAID-PL-TYPE | PrePaid InvoiceType created when PAYGByEFT is on | PPAY |
PR | Global Setup > Parameters | CASHBANK | use bank account 01 in company bank accounts for EFT | 01 |
NOTE: PAYG will always use CASHBANK parameter.
2. Accounts Payable
Before making any changes to Payroll parameters, be sure to make them Company Specific by selecting the parameter and using the ‘Choose Action > Create Company Specific.’
| Full Path | ID | Description | Value to be Added |
AP | Accounts Payable > Configuration > Parameters | INVPAY | List of T/Types for Invoice Prepayment | PPAY |
AP | Accounts Payable > Configuration > Parameters | NOMATYPS | Transaction Types that do not invoke Invoice Matching | PPAY |
3. Supplier Reference ID and Bank Account
The pre-defined payee reference ID can be stored against the ATO supplier. When the EFT file is generated for payment of PAYG for the supplier, the payee reference field will be assigned with the pre-defined payee reference.
The Bank account details on the supplier will be used in the aba file for payment.
Accounts Payable > Suppliers > Suppliers
For ATO supplier drill into the account and on Payment Method there is a field ‘EFT Payment Reference (Override)’ this will be used on the aba file.
ABA file will insert the payment reference ID into the ABA file.
4. Transaction Types
Add new Transaction type for PPAY to identify the PR prepaid invoices.
5. Linking Supplier to Payroll Pay Calculations for Termination Tax
Payroll > global Setup > Australian Specific > Pay Calculations
COINS SureStart will have already pre-defined Tax codes; LTAX, RTAX, TPT, TTAX, TTXS
All payroll related pay calculations for taxes must hold the ATO supplier code against each code.
6. Linking Supplier to Payroll PAYG Tax
Payroll > Company Setup > Oncost % Configuration
Tax Authority Type = FED (Federal) assign the ATO supplier.
EFT Output and Print
This will allow you to output EFT transactions processed in payroll.
7. Report Status
Report output will display for the company all employee transactions processed in EFT file including ATO supplier for PAYG.
8. File Output
ATO will be included in the wages file along with all employee wages for Bank 01.
9. Posting Payroll Costing Workbench
When PAYG has been processed along with wages in the EFT file, on posting the payroll costing workbench an Account Payable Invoice batch will be automatically created and posted. The payroll costing workbench will have a link for ‘AP Prepaid Invoice Batch’
Clicking on the link will redirect user to the batch in Account Payable where the ATO is automatically posted as it has been paid via payroll EFT process.