Checklist: Processing AP Checks and EFT Payments

Follow this checklist to understand the process to generate accounts payable checks and EFT payments.

Before you process checks and electronic funds transfer (EFT) payments for accounts payable vouchers in Cash Management > AP Payment Processing, you must set up the following:

  • Default payment terms for each vendor in the Firms hub.
  • Liability codes, vendor codes, discount codes, check templates, and more in Settings > Cash Management > Accounts Payable.

AP Checks and EFT Payments Processing Checklist

Step Description
1 Enter new vendors in the Firms hub. Be sure to complete the fields on the Vendor tab.
2 To pay vendors by electronic funds transfer (EFT), complete the following setup information:
  1. Set up EFT payment information on:
    • The NACHA File Format tab in Settings > Cash Management > Banks for the bank or financial institution from which the payments are made.
    • The Vendor tab in the Firms hub, for the vendors who will receive EFT payments.
  2. Run a test direct deposit, as described in the next step.
3 To run a test direct deposit for vendors to be paid by EFT:
  1. In the Firms hub, complete the appropriate fields on the Vendor tab.
  2. Run a test direct deposit. DPS changes the vendor's Status to Wait.
  3. Send the file to the bank for testing.
  4. When the bank tells you that a vendor's account information is valid, you must manually change the vendor's Status to Active before you can process an EFT payment for the vendor.
4 Enter new AP vouchers in Transaction Center > Transaction Entry that will be paid later in the AP Payment Processing application.

Alternatively, you can enter AP disbursements in Transaction Entry that allow you to enter and pay AP vouchers in one step.

5 In Cash Management > AP Payment Processing review the remaining unpaid AP vouchers in the grid on the Voucher Selection page of the Vendor Payments form. Or, view the Voucher Schedule report in My Stuff > Reporting.
6 In AP Payment Processing review the Cash Requirements report.
7 On the Vendor Review tab in AP Payment Processing, modify data for the vendor address, payment date, or bank as necessary. Release, hold, or modify any vouchers that remain unpaid.

You must complete this step before you process payments.

8 To process both check and EFT payments, select an existing run or create a new run in AP Payment Processing.
9 Process payments by either of these procedures:
  • Process Manual Select Payments
  • Process Automatic Payments
10 If vendors are set up to be paid electronically by EFT, they are included in the payment processing run with paper check payments. To put them in a different run, you must select from the EFT options on the General tab on the AP Payment Processing form.

Checks for EFT payments have "NON-NEGOTIABLE" printed on them.

11 Preview checks before printing them to verify that they are correct.
12 Print the checks.

If you create a text (.txt) file, this step is not necessary. Continue by assigning check numbers.

13 Review the checks that are printed in the run.
14 Assign check numbers.
15 If applicable, use the Export to Text option to create a .txt file.
16 Print a file copy of the checks, if necessary.
17 Post payments.
18 If a posted AP payment run includes vendors who are paid electronically, finish the EFT procedure. To do this, select Cash Management > AP EFT, and use the Process option on the Accounts Payable Electronic Funds Transfer Processing Form to:
  • Process the run for EFT payees.
  • Create the EFT .txt file in the format you specify to send to the bank or financial institution, in Settings > Cash Management > Banks.
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