Before describing how to add a new payment account (or "payment type"), it may be helpful to clarify what "payment account" means in the MarginEdge platform.
What are Payment Accounts?
MarginEdge uses "payment accounts" to indicate how an invoice is paid and whether payment information is sent to your accounting system. The default payment account for invoices is "Accounts Payable" - these invoices will be sent over to accounting as a bill to be paid with the invoice total crediting your A/P account.
However, sometimes invoices are paid upon receipt and payment information is uploaded to ME with the invoice. Examples include invoices paid by check, or ACH/EFT, or credit card. For each payment type you will use with invoices and receipts, you should have a corresponding "payment account" in MarginEdge. Even if used infrequently, it's best to set up any payment accounts that might be used.
How do you add payment accounts?
To view your payment accounts, or add/remove any, go to Accounting > Payment Accounts from the main menu.
If you started with us January 25, 2021 or later, your payment accounts page will come by with payment accounts for Accounts Payable, Checking, Credit Card, and Petty Cash as shown below.
No 'Accounting System Account' is needed for Accounts Payable. MarginEdge will automatically associate this with the default A/P account in your accounting system, for the others; you are required to map them to your accounting system.
If you would like to edit, disable, or delete any of these payment accounts, you can do so on the Payment Accounts screen.
Here are descriptions of the three fields on the Payment Accounts screen:
Payment Account Name
For any account other than Accounts Payable, you can create/edit the name. Common examples of this include:
- Checking BankX ####
- AMEX ####
- CCARD ####
- DEBIT CARD ####
- Petty Cash
- Paid Out
(where #### are the last digits of the account or the credit card.)
Accounting System Account
For most accounting systems, this is an account selected from a list of your g/l accounts. To select one, simply click in the field and then click again to view the dropdown list. For a few accounting systems for which MarginEdge cannot access the chart of accounts directly, this field will allow you to enter text and you will have to type in the g/l account number in this field.
Account type sets how the data will be sent to your accounting system. There are three choices of account types in MarginEdge:
Accounts Payable - used typically just once as shown above. Payment accounts set to Accounts Payable will be sent as an invoice to an accounts payable account.
Checking - Invoices closed to payment accounts set as Account Type "checking" will be sent as a bill to your accounts payable along with a check payment marking the invoice as paid by the checking account mapped under the accounting system account. Checking is the account type recommend for:
- Invoices paid with checks upon delivery
- Invoices paid with ACH/EFT
The check number used will either be the check number provided with the invoice or if no check number is given the check number will be "DRAFT + Invoice number." If no invoice number is present, the check number will be "DRAFT + Invoice Date."
Other - For payment accounts set to this category type, no invoice is sent to the accounting system, only a journal entry. Common examples include purchases with petty cash (paid-outs), debit or credit cards, and internal transfers. (Click here for information about how to book petty cash transactions with MarginEdge.). Examples:
Below is an example of a restaurant set up with additional payment accounts:
A note for Xero users
Xero accounting system does not allow manual journal entries to be posted to bank accounts. This means payment accounts set as account type "checking" or "other" cannot be mapped to a bank account in Xero. A clearing or balance sheet account must be set up and mapped for payment to be exported.