Accounts Payable (AP) EFT Processing Overview
Electronic Fund Transfers (EFT) is commonly used for Direct Deposits of Accounts Payable.  It is safe, convenient and very cost effective.  This form of automated bill payment has become increasingly popular with both businesses and consumers. Applying the Accounts Payable function using an EFT is quite simple.  You debit your own account and credit your vendors' account on the due date.

Steps for AP EFT Processing
Company Setup

Vendor Setup

Prenotifications
There are two ways to send a Prenotification to the bank.  A Prenotification is a transaction record that contains the banking information for the vendor but has a zero-dollar amount.  This is used to verify that the account and routing numbers are correct.  Only vendors with a status of Prenote in the Electronic Funds Transfer group box in Maintain Vendors will be included in these processes.

Assign New Bank ID
It is suggested that a different BANK ID be used to allow EFT transactions use their own check numbering scheme. For all vendors that require checks another BANK ID will prevent using up check numbers from your own check stock that are pre-printed with check numbers.

Remit to Statement
Run the Check Remittance Statement for information about EFT transactions sent to the Vendor. If there is a different BANK ID setup then the report can be based on the BANK ID used for EFT Vendors.

EFT File Processing

Process Electronic Funds Transfer Recreate eFile
When Recreate eFile... is selected from the Electronic File Transfer submenu on the Process Menu the Recreate eFile dialog displays. This dialog is used to recreate, reverse or create a voided file.
There are cases that the EFT file will need to be created differently than the original file.  The Recreate eFile option can be accessed from the Process - Electronic Funds Transfer menu option.  The following options are available:

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What is the difference between the formats such as PPD, CCD, CTX?
You can have up to 9,999 addendum records in CTX format, whereas CCD normally supports one addendum record. These abbreviations relate to an 'application' type, and help determine the detail record format. ACH applications are classified as being either consumer or corporate payments, depending on the relationship between the parties.

Entry Class Codes are:
PPD - Prearranged Payment and Deposit Entry (Consumer)
This is used for credit transactions such as direct deposit of payroll, pension, dividends, as well as debit transactions such as payment of utility bills, mortgages, loans and other recurring payments.

CCD -Cash Concentration or Disbursement (Corporate)
Can be used to consolidate and sweep cash funds within an entity's controlled accounts, or make/collect payments to/from other corporate entities.
The format and information requirements for PPD and CCD are identical. In addition, they each can support one addendum record.

CTX - Corporate Trade Exchange (Corporate)
Supports the transfer of funds (debit or credit) with another entity in which you have an existing trading relationship. This format supports ANSI ASC X12 payment related information, which can be placed in multiple (up to 9,999) addendum records.

Note:
· The CTX format is different than the PPD and CCD.
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PROCESS SEND EMAIL VENDOR EFT PAYMENT
The process to send an email to the vendor that is being paid with the EFT File transaction can be performed in Accounts Payable (AP) module.
Follow the process below to send email to the EFT vendor:

Maintain Vendors – Vendor ID

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ACH FILE INCLUDE COMPANY BANK ROUTING AND ACCOUNT

ACH File include Company Bank Routing and Account
Open the Maintain Banks - Electronic Funds Transfer Tab then enable the checkbox for Create Balanced File. The system will automatically enter the requried numbers.

Create Balanced File
Check the Create Balanced File option if the bank requires a "balanced" file. A "balanced" file refers to an ACH formatted file with one additional detailed record line that includes the grand total dollar amount for all records in the file.

Receiving DFI
The Receiving DFI field will default to the Routing number field on the Maintain Banks - Bank tab. 

DFI Account
The DFI Account field will default to the Account field on the Maintain Banks - Bank Tab