One EFT to Many Vendor Invoices

Ever wonder how to handle a unique situation where one wire transfer is paying several vendors at once? Typically users think they have to record multiple bank entries for each vendor payment and then process another entry to record the wire fee.This can cause a bank reconciliation headache when a bank statement only shows one transaction.

Here is an easy method for recording just one EFT but applying it to many separate vendors (and it also works for customer payments as well).

Open Payment Journal
Note: Posting Date is date of wire and Doc Type is Payment for all lines…
1. First line is Type = Bank with credit amount of Wire (including wire fees!!), offset is vendor.
2. Second line is Type  = Vendor with total debit amount of invoices being paid to that vendor , select invoice(s) that were paid with wire, offset is bank.
3. Third line is Type Vendor total debit amount of invoices being paid being paid to that vendor, select invoice(s) that were paid with wire,offset is bank.
4. Fourth line, Fifth line etc… as many needed for number of vendors being paid, offset again is bank.
5. Last line is Type G/L Account with gl number for booking the wire fees and debit amount,offset is bank.
Verify your entry is in balance, then post.

Would you like to see a screen shot, have questions or need other “Tips and Tricks” specific to a unique situation? Please call us. 407-658-1874.

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