Generate a prenote before going live with your direct deposit. This allows the bank to review your prenote file and advise on any changes needed for the file without holding up your payroll. Generate your prenote file, then print and post your checks as usual.

To create a prenote for an employee, you need a non-zero net check with a zero direct deposit deduction.

Employee setup

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.
6. Select the Prenote only checkbox.
7. If there's a date in the Prenote date field, clear the date.
8. Click OK.
9. Repeat steps as needed for each direct deposit and each employee.

Create a check with the prenote

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.
10. Verify the direct deposit prenote is a zero amount.
11. Click Accept Check and Finish.
12. Repeat steps for other employee prenotes.

Generate the NACHA file with the prenotes

1. Go to Payroll, Tasks, Generate Direct Deposit.
2. Select the Bank, Check format, and Effective date.
3. Specify the path for the NACHA file in the Direct Deposit Path.
4. Use Ranges to select the checks to generate as part of this NACHA file.
5. Click Start.
    NOTE: The Direct Deposit Register shows the number of prenotes you generated. If you only generated prenotes, the Background Tasks will show "No information to print." This is normal.
6. Sent the NACHA file to your bank.

Response from bank

Bank doesn't approve the file

1. Make adjustments as requested by the bank.
2. Generate a new prenote file:
   • Unposted checks: Regenerate the direct deposits prenote
   • Posted checks: Generate a new prenote file

Bank approves the file

1. Go to Payroll, Setup, Employees.
2. Select an employee.
3. Click Deducts.
4. Select the grid line containing a direct deposit deduction ID and click the Direct Deposit button.
5. Uncheck Prenote Only.
6. Click OK.
7. Save the employee setup.
8. Repeat for other employees as needed.

How do I set up direct deposits?

How do I print checks in Payroll?