How To Set Up Payment Method Ⓐ - N3 AI Accounting

Overview

A Payment Method is used to define the methods of payment that can be used when recording transactions, such as Cash, Bank Transfer, Cheque, Credit Card or E-wallet. 

Each payment method is linked to a Chart of Account (COA) to ensure that payments are posted to the correct accounting during transaction processing. 

Before using payment methods in transactions, users are required to create and configure them by assigning the appropriate Chart of Account. This setup helps maintain accurate financial records and ensures consistent accounting entries across the system. 

This guide explains how to create a new payment method and associate it with the relevant Chart of Account for use in daily business transactions.

Scenario

A business wants to add a new payment method, such as a digital wallet or bank transfer, to ensure payments are processed and recorded accurately in the system.

Solution

1. In the navigation pane, select Company > Maintenance > Payment Method
   
   
   

2. Click the ‘Add’ button to create a new option.
   
   

3. A pop-up window for Payment Method Details will appear, where the user will set up the details of the new payment option
   
   ➢ Code: Select the Payment Method code
   ➢ Description: Name of the Payment Method 
   ➢ Payment Mode: 
           01 -  Cash
           02 - Cheque
           03 - Bank Transfer
           04 - Credit Card

        05 - Debit Card
        06 - e-Wallet / Digital Wallet
        07 - Digital Bank
        08 - Others
➢ Bank / Cash Account: Choose from a selection based on what was set up  under Chart of Accounts > Current Assets > Cash at Bank
➢ Active: Set this Payment Method active
➢ Default: Set this Payment Method as default

4. After Setting up the Payment Method Details, proceed to click Submit
   
   
   

5. Next, you may check the setup payment method reflected in the account in Chart Of Accounts (COA).
   
   
   

Application

• Use the newly created payment method when recording receipts and payments in invoices, or Pay Bills modules. 

• Automate reconciliation by linking transactions to the correct payment account. 

• Standardize payment processing across departments for accurate reporting. 

• Simplify cash flow management by tracking all payment types consistently.

Done!

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