Note: You must have at least one non-zero net check in the new file with a zero direct deposit deduction for each employee that you want to create a prenote file for.

1. Go to Payroll, Setup, Employees.
2. Select an employee.
3. Click Deducts.
4. Place the cursor in the grid line containing a direct deposit deduction ID (DD) and click the Direct Deposit button.
5. Enter the employee's bank routing and bank account information then select the Prenote only checkbox and click OK.
   Note: If there is a date in the Prenote date field on the Employee Deductions - Direct Deposit Info window, use Audit Setup Activity to remove this date before you produce the next prenote ASCII direct deposit file. This field updates when you post your payroll after you generate direct deposit prenotes.
6. Repeat steps 3 and 4 for each direct deposit deduction.
7. Repeat steps 2-5 for each employee.
8. Verify that the Net Direct Deposit shows on the check and is a zero amount after processing.
9. Prior to printing any payroll checks, generate the direct deposit.
   Note: The Direct Deposit Register shows the number of prenotes that were generated. If only prenotes were generated, expect to see the background task bar flashing with "No information to print." This is normal. Since there are no direct deposit deduction amounts to generate, there is no information to print on a Direct Deposit Notification.
10. Print the paper checks as normal through Tasks, Print Checks. (see article How do I print checks in Payroll?)
11. Send the NACHA file to your bank
12. If your bank does not approve the prenote, regenerate the direct deposit prenote. If there is a date in the Prenote date field on the Employee Deductions - Direct Deposit Info window, use Audit Setup Activity to remove this date before you produce the next prenote ASCII direct deposit file. This field updates when you post your payroll after you generate direct deposit prenotes.
13. If your bank approves the prenote, then you are ready to generate actual direct deposits. Be sure to clear the Prenote only check box on each direct deposit employee once the bank approves the prenote to avoid problems when generating actual direct deposits. If you do encounter problems, refer to the PR Help topic Correcting errors when generating direct deposits. Remember to post your checks, the prenote date will populate on to the master file record.

Note: For a partial direct deposit you must manually enter a zero value for this Deduct ID if a value is not set up to automatically populate (i.e. under Setup > Employees > Deducts the amount is blank for Partial Direct Deposit)

1. Go to Payroll, Tasks, Enter Checks.
2. Click List and choose a time entry view, enter a period begin date (optional), and click OK.
3. Click List and select the employee ID and then click OK.
4. Type the Period End Date and select a check sequence.
5. Press the TAB key twice.
6. Enter the appropriate time information.
7. Click the Deduct button.
8. Click List and select the appropriate Deduction ID.
9. Click Process and confirm all the values are accurate by clicking Chk Info.
10. If a Net Direct Deposit is already setup then generate the direct deposits as normal otherwise prior to printing any payroll checks, generate the direct deposit.
11. Confirm that the Direct Deposit Register shows the correct number of prenotes were generated.

How do I set up direct deposits?