EFT Processing for Accounts Payable

Use Electronic Funds Transfer (EFT) to pay a vendor by making a direct deposit to the vendor's account at a bank or other financial institution.

When you process EFTs for vendors, DPS does the following:

• Prints a check with a "NON-NEGOTIABLE" label
• Generates an EFT remittance advice
• Generates a text file in the NACHA or user-defined file format that you specify in Settings > Accounting > Banks. You send this file to the bank or financial institution after you process EFTs for vendors. This format is accepted by most banks.
• Generates an AP Electronic Funds Transfer report for the payment run you select. The report displays the vendor number, vendor name, Tax ID number, bank ID, bank account number, bank account type, direct deposit status, and direct deposit amount for each of the vendors in the selected payment run.

When you set up EFT for a vendor, you must pay the vendor with paper checks until you enter EFT payment information for your bank and vendor and you run an initial test direct deposit.

Processing Overview

Use Cash Management > AP Payment Processing to process and post payments. You can process EFTs in either a different run, or the same run, as check payments.

On the AP Electronic Funds Transfer form in Cash Management > AP EFT, you select the posted AP payment file to complete the EFT procedure.