ACH (NACHA) Electronic Vendor Payments

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

Before you can process an ACH vendor payment run in Cash Management > Vendor Payments, you need to complete the following actions.

Settings

You must complete settings for banks, vendors, the vendor payment template, and automatic payment numbering for ACH EFTs.

For more information, see Setting Up Vendor Payments for ACH (NACHA) EFTs.

AP Voucher Entry

When you enter AP vouchers in Transaction Center > Transaction Entry > AP Vouchers, 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.