Making Vendor Payments with ACH (NACHA) EFTs
In Vendor Payments in the Cash Management application, you can process ACH/NACHA electronic payments to pay vendors for AP vouchers.
ACH payments are made through the Automated Clearing House network and use NACHA-formatted files that contain the payment information. ACH electronic payments are also referred to ACH EFTs (electronic funds transfers).
When you process ACH vendor payments in Vantagepoint, you download a NACHA-formatted text (.txt) file that you send to your bank. The bank uses the payment information in the file to make the direct deposit payments to your vendors' bank accounts.
Prerequisites
The following sections identify the settings and entries that you need to complete before you can process an ACH vendor payment run in
.Settings
The following are settings that you complete for banks, vendors, the vendor payment template, and automatic payment numbering for ACH EFTs.
Location in Vantagepoint | Setting |
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For banks that you use to make ACH payments to vendors, make these selections on the Bank Codes settings form:
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For vendor-type firms that will receive ACH payments:
In the Banking Information section of the Vendor tab: Click beside the Electronic Payment Method field. On the Electronic Payment Method dialog box that displays:
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On the Payments tab, the format that you select in the Printed Payment Format field and the template that you enter in the Template field control what the vendor payments look like when you print any type of vendor payment using the Print Payments or actions on the Payments grid on the Printing and Numbering page in Vendor Payments. The printed payments for ACH EFTs have "NON-NEGOTIABLE" printed on them. The file copies have "COPY" printed on them. | |
In the Bank Transactions section, you can specify that the payment transactions for a bank be automatically numbered and enter a starting number to use for the next payments that are processed. You specify whether the auto numbering applies for all types of payments or only electronic payments.
When auto numbering is not turned on, you assign a starting number for each bank's payments in a vendor payment run by clicking Assign Numbers on the Printing and Numbering page in Vendor Payments. |
AP Voucher Entry
When you enter AP vouchers in
, if you want a voucher to be paid by an ACH payment, you must select a bank for the voucher that has been set up to make ACH/NACHA payments, and the vendor for the voucher must be set up to receive ACH payments. Refer to the settings in the table above.ACH Direct Deposit Test
Run a test direct deposit for vendors who will receive ACH payments. See Perform Initial Test Direct Deposit.
Summary of Processing ACH Vendor Payments
The following help topics provide instructions for processing all types of vendor payments in
, including ACH payments:- Create a Vendor Payment Run (set the Payment Type field to Check/EFT for an ACH payment run).
- Manually Select Vouchers to Pay in a Vendor Payment Run or Automatically Select Vouchers to Pay in Vendor Payment Run.
- Process a Vendor Payment Run After You Select Vouchers (print payments, assign payment numbers, print and/or email remittance advices, and print a file copy of each payment)
- Post a Vendor Payment Run
- Download the NACHA-Formatted File to Send to Your Bank