Set up and process ACH vendor payments

Set up General Ledger accounts

Create these accounts in GL, Accounts, Maintain Chart of Accounts:

Holding Account: holds payment funds before bank settlement.
Fees Expense Account: records ACH processing fees.
Fees Cash Account: credits ACH processing fees.

Establish an ACH processing account

Before processing ACH payments:

Contact a NACHA-compliant bank or credit union.
Set up an account for ACH payment processing.
Obtain the account information required to create ACH files.
Obtain instructions for transmitting ACH files.

Enter company ACH information

Use AP, Transfer, ACH Setup Parameters.

Enter setup information that applies to all ACH payments.
Verify all field values with your bank.
Use a financial institution that accepts NACHA-formatted files.

ACH Setup Parameters
Check with your bank for assistance with these fields
Bank account name	Your bank account name.
Bank account type	Checking or savings account.
Company identification	Numeric company ID.
Immediate destination	The nine-digit routing number of the institution receiving the ACH file for processing. Typically, this is your bank’s routing and transit number.
Preface Immediate Destination with a blank	Select to add a blank preceding the field.
Originating DFI identification	Routing transit number of the originating Depository Financial Institution (DFI).
DFI account number	Account number that originates the entries.
Immediate origin	The nine-digit routing transit number of the institution sending (originating) the ACH file, preceded by a blank. (Often your ODFI will have you insert your company ID in this field.)
Preface Immediate Origin with a blank	Select to add a blank preceding the field.
Immediate origin name	The name of the financial institution sending the payment file.
Receiving DFI	Routing transit number of the receiving Depository Financial Institution (DFI).
Company entry description	This must be "PAYMENT" for ACH files.
Header label record	Leave blank unless instructed by the bank.
Allow hyphens in vendor bank account #	Follow bank instructions.
Holding account	GL account to hold funds until you send the file to the bank.
ACH fees expense account	The expense account for fees charged by the bank.
ACH fees cash account	Cash account used to pay fees.

Configure vendors for ACH payments

Use AP, Vendors, Maintain Vendors, ACH.

Each vendor can use one ACH bank account.
Set the account status manually.
Account status options:
- Send Prenote: creates a prenote.
- Prenote Pending: waits for bank approval.
- Active: enables ACH payments.
Paper checks continue until you select Enable ACH and Account Status is Active.

Maintain Vendors - ACH Payment Dialog
Enable ACH	Check to enable ACH for this vendor.
Email Advices	Check to send a Remittance Statement via email to the vendor. This uses the Finance email address to email statements.
Account Status	Not selected, Send prenote, Prenote Pending, Active.
Account Type	Checking or Savings.
Routing Number	Vendor's bank account routing number.
Account Number	Vendor's bank account number.

Send prenotes

Open AP, Transfer, ACH File Preview.
Preview the Prenotes Report.
Verify vendors appear on the report.
If a vendor is missing, verify that you’ve Enable ACH and Send Prenote checked.
Open AP, Transfer, Create ACH File.
Select Only in Include Prenotes.
Verify the date, location, and filename.
Click OK to create the file.
Send the file to the bank.
Change Account Status to Prenote Pending.
Wait for bank approval.

Select invoices and print ACH payments

After approval, set vendor Account Status to Active.
Use AP, Checks, Invoice Selection.
Select invoices through Automatic or Manual Invoice Selection.
Verify ACH vendors display with an asterisk (*) on the selection report.
Open AP, Checks, Print Checks.
Select ACH Payments.
Enter the starting ACH number the first time.
Print remittance forms.
Print the Check Register.
- The Check Register displays the ACH, the ACH number, and Trace No. Pending.
- Sage BusinessWorks replaces Trace No. Pending with the trace number after file creation.

Print ACH File Preview Report

Open AP, Transfer, ACH File Preview.
Print the ACH File Preview report.
Verify vendors, ACH numbers, and payment amounts.

Create the ACH payment file

Open AP, Transfer, Create ACH File.
Review file settings.
Record the ACH payment number.
Click OK to create the file.

Verify ACH payments

Open AP, Transfer, ACH Remittance Report.
Select the ACH Pay File No.
Preview or print the report.
Verify vendor information, invoices, payment amounts, and trace numbers.
- If a payment issue occurs, provide the vendor, transmit date, and trace number to your bank.

Post ACH settlement

Open AP, Transfer, Post ACH Settlement.
Select the ACH payment file number.
Enter a reference for General Ledger and Cash Management reconciliation.
Post the settlement.
- Sage BusinessWorks automatically populates the transaction date and payment total.

Print ACH remittance statements

Open AP, Transfer, Print ACH Remittance Statements.
Select the ACH payment number.
Print or email remittance statements.
To email statements, select Email.
Verify you selected Email Advices for the vendor.
Enter an email address if the Finance Email field is blank.
Select Create one PDF file per vendor to generate separate PDFs.

More information

Existing EFT processing remains unchanged. Use AP, Checks, Enter Payments for EFT transactions.
Void ACH payments in AP, Checks, Void Payments by Vendor.
Vendor Inquiry displays ACH payments and trace numbers.
Reports such as the Check Register and Check Detail Report display ACH payments and trace numbers.

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