Perform Initial Test Direct Deposit

After you configure Accounts Payable for electronic funds transfer, you must run an initial test direct deposit and send the test file to the bank.

The bank uses the test file to ensure that payment runs will post each vendor's payment to the correct bank account. This test file is also known as a pre-notification, or "pre-note."

The Status field in the Firms hub displays the vendor's current EFT status. This data changes for each step of the pre-notification process.

• When you set up the vendor for electronic funds transfer, you must specify a Status of Add.
• When you run the vendor's initial test direct deposit, the Status field displays Wait. DPS prints a non-EFT check for the vendor.
• When the bank tells you that the vendor's account information is valid, you must manually change the Status to Active before you process the next EFT payment for this vendor.

To perform the initial test direct deposit:

1. Ensure that each vendor record in the test run has a Status of Add in the Firms hub.
2. On the Navigation menu, click Cash Management > AP EFT.
3. In the AP Payment runs this period grid on the AP Electronic Funds Transfer form, select the AP payment run that you want to test.
4. In the Effective Entry Date field, specify a date.
5. With the run selected in the AP Payment runs this period grid, click Report.
6. On the report, review the vendors and amounts to be processed.
7. Click Process to generate the .txt file in the specified format. DPS blocks from the processing run those vendors with a status of Add and validates the vendors with a status of Wait.
8. On the Download EFT Files dialog box, click the link for the file to create.
9. On the File Download dialog box, click Save this file to disk to save the file to the location that you specify.
10. Click Save to save the file and then click OK.
11. Send this file to the bank or financial institution.
12. After the bank or financial institution tells you that a vendor's account information is valid, change the vendor's Status to Active before you process the next EFT payment for this vendor.