Perform an Initial Direct Deposit Test for Vendor Payments
Before you can make electronic ACH payments to vendors, you must complete an initial vendor payment run, which pays the vendors by paper check and also creates a file for your bank to test but not pay.
For this initial vendor payment run, you select vendors whose electronic payment method status is set to
Add in the Firms hub. The payment run will pay a vendor by paper check and generate a test file, also known as a pre-notification or pre-note. You send this test file to your bank so they can confirm that they are able to access each vendor's bank account to make future direct deposit ACH payments to the vendors. The test file does
not contain AP voucher payments for the bank to make electronically.
Prerequisites
- Configure Accounts Payable and set up your bank and vendors for electronic payments.
- For each vendor to be included in an initial payment run: Enter the following information on the Electronic Payment Method dialog box that opens from the Vendor tab in the Firms hub when you click
beside the
Electronic Payment Method field in the Banking Information section:
- In the Electronic Payment Method field, select NACHA.
- Enter information for the vendor's bank that will receive the direct deposit when the vendor is paid. This includes the bank ID, account type, account number, and so on.
- In the Status field, select Add.
To perform an initial direct deposit test for ACH vendor payments:
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