Paying vendor invoices with vendor direct deposit

You can pay multiple vendor invoices partially or in full using direct deposit. These vendors must be set up to support direct deposits and the bank selected must support direct deposit.

Note:

The direct deposit file format created supports US bank NACHA format only.

To pay vendor invoices with direct deposit

Follow the steps indicated in Paying vendor invoices.

Select Direct deposit in the Pay Invoices window.

Enter and review the following information:

Field

Description

Bank account

Select a direct deposit enabled bank

Reference

This is the reference associated with the bank entry created for direct deposit

Date paid

The date of the payment

Total amount paid

View only - This amount is the total amount of all the invoices selected for payment

Prenote

Select this check box to send a pre-notification, instead of an actual direct deposit, as a test before you begin producing actual direct deposits. Only vendors with the Prenote check box selected will be included in the file.

# of prenotifications

View only - This field only appears if the Prenote check box is selected. This is the number of vendors included in the prenote generation.

# of payments

View only - The number of payments selected

Write-off date

View only - The date of a write-off

Total write-off amount

View only - The amount of a write-off

Print direct deposit / EFT file copy

Select this option to save a file copy of the payments included in this direct deposit

Click OK.

In the Direct Deposit dialog, enter the following information:

Field

Description

Direct deposit path

The location where you want to store the direct deposit information that you send to your bank for processing.

Effective date

The date you want the direct deposit to occur

Reference

The number or ID that identifies this direct deposit

File ID modifier

The file ID modifier is included as part of the header for the direct deposit file. It is used to distinguish files if your company submits more than one direct deposit file on any one day to the same bank. The file ID modifier types are:

Alpha

This default is most commonly used. The letter A is automatically assigned as part of the header for the direct deposit file. If you submit more than one file to the same bank on the same day, the next letter in the alphabet is used for subsequent direct deposit files.

Numeric

If your bank requires the file modifier to be numeric, select this option. The number 0 is automatically assigned as part of the header for the direct deposit file. If you submit more than one file to the same bank on the same day, the next number is used for subsequent direct deposit files. (0-9 are valid entries, starting with 0).

Standard Entry Class Code

Choose from the following:

CCD: Use this for non-employee vendors.
PPD: Use this for vendor payments to employees.

Click OK.

Concepts

About Vendor Direct Deposits

Tasks

Setting up a bank account

Setting up vendors

Setting up vendor direct deposits

Entering bank register transactions

Regenerate a vendor direct deposit file

Voiding a vendor direct deposit