This article covers how MarginEdge uses "Payment Accounts" and how they translate to your accounting system and [me] Bill Pay.
This article's sections are listed and linked for quick access:
- Payment Accounts in [me]
- Can I have Additional Payment Accounts?
- How Do I Create New Payment Accounts?
- Ensuring your Invoices are Closed to the Right Payment Account
- Removing Payment Accounts
Payment Accounts in [me]
Their Primary Role: To record and communicate how an invoice is paid.
Knowing how an invoice was paid impacts what information is sent to your accounting system and whether the invoice appears in [me] Bill Pay as an unpaid bill.
Your Default Payment Account: Accounts Payable (or "A/P")
Every MarginEdge account has one accounts payable payment account by default. By using this, your invoices will be closed and recorded to your A/P account. This means they will show as being unpaid and when exported, will be sent over to your accounting system as a bill to be paid with the invoice total crediting your A/P account.
The default Accounts Payable in the MarginEdge should not be mapped (i.e. you don't need to do anything!) because our software will automatically find the default accounts payable in your accounting system. Most restaurants only need one accounts payable type payment account.
Can I have Additional Payment Accounts?
Yes! You can have as many Payment Accounts as needed. We recommend only one Accounts Payable, but we often see multiple Credit Cards and Checking accounts.
If invoices are paid upon receipt, that payment information can be communicated to [me] on the invoice and recorded through the use of additional Payment Accounts.
For every payment type you might use to pay any invoices and receipts - like check, ACH/EFT, credit card - you should have a corresponding Payment Account in MarginEdge. Even if it's only used infrequently, it's best to set up any payment accounts that might be needed.
For [me] Bill Pay users: Any invoice closed to any other Payment Account other than A/P will be automatically marked as "Paid Externally", and by default, will not appear in Bill Pay > Invoices. (Note that while payment accounts influence [me] Bill Pay, choosing "Check" as your Payment Account does not mean MarginEdge will send that vendor a check!)
How does this look in my Accounting System?
- Accounts Payable will be posted as an invoice/bill in your accounting system
- Anything with “Other” or “Credit Card” as the the account type will be a journal entry (see below for more explanation)
How Do I Create New Payment Accounts?
Go to Accounting > Payment Accounts from the main menu to view, add or edit your payment accounts. Once created, these new Payment Accounts must also be "mapped" in order to export correctly.
Click here to follow the detailed instructions:
Article: Creating Additional Payment Accounts
Below is a quick video on setting up Payment Accounts.
Ensuring your Invoices are Closed to the Right Payment Account
When uploading invoices, our default is to mark them as unpaid by closing them to the Accounts Payable payment account. If you want our team to correctly record the method by which they were paid when the invoice is processed, there are two ways you can help ensure that this happens.
- You can adjust the vendor settings to define a default payment account or
- You can write the payment used on the invoice itself
Full instructions are here: Ensuring your invoices are closed to the right payment accounts
Removing Payment Accounts
If you no longer need a Payment Account, but it was in use at one time and thus may still be linked to some invoices, you will need to deactivate the account as it cannot be deleted. Simply click into the final column under "Active" for the appropriate account and change it from "Yes" to "No".
Looking for more details?
Creating Additional Payment Accounts
Setting Up Payment Accounts for Commissary and Internal Transfers
Ensuring your invoices are closed to the right payment accounts