EFT Setup

Overview

This section explains the process of generating an EFT/ACH file (instead of a paper check) for AP payments. EFT must follow standards of a clearing house, needing routing and NACHA standard format whereas EPayables follow a bank's own guidelines.

The APOHPPPA process will produce an AP EFT file and/or print paper checks for BusinessPlus AP. Whether a vendor receives a paper check or an EFT file is designated within the vendor's record within the PE Information (PEUPPE) page, Vendor tab, Payment Method section.

EFTs are written to the CKDB or BKDB with a status of CX. These types of checks are considered cancelled as soon as they are processed because they clear the bank as soon as they are received.

File Layout

The BusinessPlus AP EFT file confirms to NACHA specifications. Each file will contain the following records:

A single record "1": File Header.
A single record "5": Batch Header.
Multiple record "6" types: Detail Record. One record 6 will be produced per bank account paid. Currently BusinessPlus allows one bank account per vendor, so one record 6 will be produced per vendor.
A single record "8": Batch Control.
A single record "9": File Control (Multiple record 9s may be produced if the file needs to be "padded").

General System Setup

EFT CKIDs

For each BusinessPlus standard Bank ID (formerly known as a check stock ID) the client will need a corresponding electronic EFT ID. If no EFTs are needed for a given check stock, a corresponding EFT ID does not need to be set up.

Bank IDs are defined using common code CKID/EP where EP is the code for that bank. The most common check stock ID name is AP. It is suggested the corresponding EFT ID be called EP.

In common codes, browse to CKID/AP. In Assoc. Code (4), enter EP.

Create a CKID/EP common code for the new EFT IDs. In Assoc. Code (4), enter EFT.

Assoc. Codes (1) & (2) may be configured to post to an alternate account other than the corresponding "paper" CKID account. These are the key and object for the GL cash account associated with the two IDs. To configure automatic processing, develop posting strategies with use of CKKEY and/or CKOBJ settings (optional). This is an advanced setup; consult with an advanced user or accountant before modifying or designing new strategies.

Note: Data entry is still done with the original Check ID (e.g., AP). The corresponding EFT ID (EP) is used by the system when storing EFT information. For EFT payments, the "AP" is replaced with "EP" in the AP, GL, and CK databases during the Check/EFT run. This is done because paper check payments receive a check number (the number printed on the paper check) and EFT payments use their own sequence number. 

The EFT check number common code is SYNO/APEFT.xx. The value in the first Associated Numeric Value is the starting seed number.

Should one see the following tail sheet error, review this common code and verify that the word EFT is within Associated Codes (4).

**ERROR - No EFT Bank ID on Check Stock ID
Program Terminating

EFT File Bank Information

Record Type 1

For record type 1, there are four fields that are assigned by the client's bank. The client will add this information to the appropriate common code, and it will be retrieved for record type 1.

Record 1 has the following four bank-specific fields:

1. Immediate Destination Code
2. Immediate Origin Code
3. Immediate Destination Name
4. Immediate Origin Name

After getting these four pieces of information from your bank, create common code OHEF/CONTROL1. Place the four values in Associated Descriptions 1-4, respectively.

Record Type 5

For record type 5, there are three fields assigned by the client or client's bank:

1. Company Name
2. Company Identification
3. Originating DFI ID

These are entered on common code OHEF/CONTROL5 in descriptions 1, 2, & 3, respectively.

Some banks may specify a unique header record "$$ADD…." This is accomplished by defining common code OHEF/TAPE07 (which works exactly like PYEF/TAPE07).

EFT File Name

The file is created in the user's data group. The file name is defined on common code OHEF/CONTROL. Place the word "FILE" in the first Associated Code box, and the file name in the first Associated Description box to the right.

Each run of APOHPPPA (that produces EFTs) will overwrite the last EFT file.

Vendor-Specific Setup

The Pay Selected Open Hold Entries (APOHPPPA) will process EFT transactions if the Payment Method on Person/Entity Information (PEUPPE) page, Vendor tab, is set up for this type of check processing.

Payment Method EFT

• Select the EFT Type code ID under Payment Options.
• Select Acct Type "Checking" or "Savings."
• Enter the Bank Account and Transit Routing Numbers.

Pre-Notification Transactions

"Pre-notification" denotes special transactions are in the EFT file. This "test" run ensures the file is in proper format before funds are actually transferred.

The PRENOTE process may be set up for a specific vendor or for the entire file:

• Use the Person/Entity Information (PEUPPE) page, Association tab, to set up a PRENOTE for a specific vendor. Place the word "PRENOTE" in a Code ID. Note that the vendor should already have EFT set up in another code ID. To process a PRENOTE transaction, the vendor must have a real transaction to pay in the database. When either the vendor or file is flagged as PRENOTE, the EFT file will be created for $0 dollars.
• To set up PRENOTE for the entire file, place the word PRENOTE in Associated Codes 2, 3, 4 or 5 of common code OHEF/CONTROL.
• Common code OHEF/AMTGROUP is used to specify Bank Info for EFTs above a certain dollar amount.

Paper Remit Forms

Paper remit form can be produced to mail to the vendor. Remit forms are either "on" or "off" for all vendors.

To print forms, place "PAPER REMIT" in one of the five Associated Code values of common code OHEF/CONTROL. This requires a form definition (SYSPUB).

Force one-time paper check for an EFT Vendor

A vendor configured to receive EFT disbursements may be sent a one-time check by defining "SEPCHECK" in the Associations' Code ID field within the vendors PEUPPE setup.

The feature requires the following common codes to be defined: PEAS/SEPCHECK, PEAS/SEPCKINV, and SYNO/SEPCHECK.

Before posting the invoice, add "NE" to the Sep Check field on the given AP page, then post and process the payment.

Miscellaneous Processing Notes

• Note that after APOHPPPA, the check stock ID will change to the EFT check stock ID. I.e., if the paper and electronic IDs are "AP" and "EP," data entry will be done with "AP," but after APOHPPPA, the ID will be "EP" throughout all databases.
• The "reversal" process does not apply to EFT.
• If for some reason, the APOHPPPA process must be redone, "undo" the process, and then reprocess with APOHPPPA.
• When using APOHPPSP as part of the "undo" and/or "reprocessing" of a run, the electronic check ID will need to be used. E.g., when needing to undo a check run that involves E-Payables or EFTs, you will need to add the step to update the Bank ID on the involved Invoices from "EP" or "BP" back to "AP." Then, to fix the E-Payables and EFTs numbers you will correct common codes SYNO/APEFT.EP and SYNO/APEPY.BP. The value in the first Associated Numeric Value is the starting seed number. When the need arises to change the value of the seed, this will need to be reset to the last used EP or BP number in the system. I.e., if you undid a check run and need to reissue EP00006000-EP00006010, the SYNO/APEFT.EP 1st Associated Numeric Value will be set to 0.06010, so you will need to change it to 0.05999. (The same concept applies to SYNO/APEPY.BP for EPayable.) The second Associated Numeric value is the counter of how many times the seed has been used. Therefore, if desired, that value can be changed to match the first Associated Number Value as well.