In this example, we're posting a bank payment for your employees' net wages.

When you post the journal, certain nominal codes create a liability. You'll then post any bank payments to show the money paid and clear the liability. This also affects your bank balance correctly.

1. Click Bank accounts then click the Payments drop-down and click Bank payment.
2. Enter the relevant details on the Bank Payments window, for example:

   Bank	Date	N/C	Details	Net	T/C	Tax
   Bank nominal code	Transaction date	Net wages, for example, 2220	Wages	Net wages value	T9	0.00

   Always use the non-vatable tax code, T9 by default, to post the bank payments. This ensures that they don't appear on your VAT Return.
3. Click Save then click Close.

When required, repeat this procedure to post bank payments for PAYE, NI, attachments, pensions, and student loans.