Many people often wonder what the difference is between the payment slips, or payment orders, used to make certain payments or transactions in a bank or post office. Although they may seem similar, each of them has its own purpose within the overall payment system in the country.
In order to transfer funds between the economic actors in society, such as people, companies, state institutions and financial institutions, methods and instruments are needed through which these payments are made. Such methods and instruments are known as payment transactions.
The main participants in the payment system are universal commercial banks, as well as the central bank. At the same time, this represents one of their basic economic functions. Efficient execution of payment transactions ensures the uninterrupted movement of the economy.
What are payment transactions?
Payment transactions represent a system of methods and instruments through which payments and transactions are carried out between participants in the economy. In practice, this means that every payment, whether made through a bank, post office, in cash or non-cash form, has its own appropriate instrument and method of execution.
The payment system in North Macedonia
The payment system in North Macedonia is based on three settlement subsystems:
| Subsystem | What it includes | When it is used |
|---|---|---|
| MIPS | Macedonian Interbank Payment System of the National Bank. | For urgent interbank payments of amounts over 1 million denars. Each individual transaction is settled in real time. |
| KIBS | Clearing Interbank System. | For payments of amounts up to 1 million denars. Settlement of orders is carried out at the end of the accounting day. |
| Internal bank payment system | Payments executed at the moment the payment order is processed. | Payments between clients of the same bank and the fastest method for executing payment orders. |
Types of payment instruments in North Macedonia
There are five payment instruments used in payment transactions in North Macedonia, commonly known as “payment slips” or “payment orders”. With these forms, transactions can be made in the national currency, which in our case is the denar.
Let us look at the difference between all of them.
Payment slip — Form PP 10
This form represents an order for cash payments in denars, when a person directly gives cash to be paid into a specific account. Through the payment slip, the bank receives a cash amount from natural or legal persons, which it then needs to pay into the recipient’s account stated in the form.
The payment slip is used for cash payment into one’s own account, as well as into another account when the payment is made by another natural person. The person making the payment must state the recipient’s name, the recipient’s bank, the payment purpose, the account and the amount to be paid.
Payment order — Form PP 30
The difference between PP 30 and PP 10 is that with PP 30, instead of a cash payment, a non-cash transfer of funds is made. In other words, the payment is made directly from one transaction account to another transaction account.
In the payment order, the payer must also enter their own transaction account. This type of payment can be made between two accounts from any bank.
This order is also used when a competent authority orders the transfer of funds from the account of a specific debtor to a creditor, based on a decision for forced collection and orders for blocking funds for non-cash payment.
Order for cash withdrawal — Form PP 40
This order is used when withdrawing cash from the transaction account of legal and natural persons.
This is done in accordance with the legal regulations for withdrawing cash, which include salary payments, meal and transport allowance, material expenses and similar payments.
Payment order for public revenues — Form PP 50
This form is used by natural and legal persons when paying obligations based on public revenues. This most often includes taxes, as well as other types of contributions, customs duties, excise duties and similar obligations.
Payment can be made non-cash through transaction accounts for natural and legal persons, or in cash only for natural persons. In that case, two asterisks ** are added in the “account” field.
Collective order for full salary payment — Form PP 53
Through Form PP 53, a collective order is made for the payment of salary from the account of one ordering party in favor of multiple recipients.
This instrument is used for payment of contributions from mandatory social insurance, personal tax and net salary. The bank receives the required data electronically from the Public Revenue Office.
| Form | Name | Main use |
|---|---|---|
| PP 10 | Payment slip | Cash payments in denars. |
| PP 30 | Payment order | Non-cash payment from one transaction account to another. |
| PP 40 | Order for cash withdrawal | Cash withdrawal from a transaction account. |
| PP 50 | Payment order for public revenues | Payment of taxes, contributions, customs duties, excise duties and similar obligations. |
| PP 53 | Collective order for full salary payment | Payment of salary, contributions, personal tax and net salary. |
Frequently asked questions about payment transactions and payment instruments
What are payment transactions?
Payment transactions are a system of methods and instruments through which payments and transactions are made between people, companies, state institutions and financial institutions.
What is the difference between a payment slip and a payment order?
In everyday use, the terms are often mixed, but the different PP forms have different purposes: cash payment, non-cash transfer, public revenue payment, cash withdrawal or collective salary payment.
What is Form PP 10 used for?
PP 10 is used for cash payments in denars, into one’s own or another account, when the payment is made by a natural person.
What is Form PP 30 used for?
PP 30 is used for non-cash payment, meaning a transfer from one transaction account to another.
What is Form PP 50 used for?
PP 50 is used for paying obligations based on public revenues, such as taxes, contributions, customs duties, excise duties and similar obligations.
Do you need support with payment transactions and administrative obligations?
Payment instruments may look similar, but their proper use is important for accurate administration, accounting records and timely fulfillment of obligations.
Aleksandar.AK helps companies and entrepreneurs with accounting, tax and administrative support in everyday business operations.