Accounts Payable ACH Setup Process

General Information

Function: The Accounts Payable ACH process generates an ACH-formatted payment file, known as an AP EFT file, for each AP check paid. The file can then be saved and uploaded to your bank for payment processing.

This process includes vendor ACH data, the ACH Data Setup rule, checking account settings, and an email template.

Payment File Menu Location: Transactions > Accounts Payable > Generate AP EFT File

Common Uses

• Set Up a Vendor for ACH Payments - Add the Vendor ACH/EFT Data attribute and enter the vendor's EFT/ACH information.
• Set Up a Checking Account for ACH Payments - Configure the ACH Data Setup rule and the corresponding System Cash/Checking Account.
• Generate an ACH Payment File - After creating an AP check and obtaining payment approval, generate an EFT file for upload to your bank.

Before You Begin

• Identify the vendor and the checking account that will be used for ACH payments.
• Have the vendor's EFT/ACH information available.
• Confirm the appropriate file format with your consultant. The ACH Data Setup rule supports a Standard Entry Class (SEC) code or the AMEGY format.
• Complete the initial setup below before generating a payment file.
• Before generating the EFT file, the AP check must have been created and approved for payment.

Fields / Options

ACH Data Setup Rule

These fields are maintained in the ACH Data Setup rule.

Field / Option	Description	When to Use
GL Account	Specifies the checking account from which payments will be made.	Set this to the checking account being configured for ACH payments.
File Name	Specifies the name of the generated file.	Set this when configuring the payment file for the checking account.
Format	Specifies the Standard Entry Class (SEC) code used by the GL account. An AMEGY format is also available.	Use the format confirmed by your consultant. See the Nacha ACH File Details for information about SEC codes.
Batch Number	Identifies a group of transactions that the system processes and balances as a unit.	Set this as part of the ACH Data Setup rule.

Checking Account Settings

These settings are maintained in System Cash/Checking Accounts.

Field / Option	Description	When to Use
ACH Information	Stores the ACH information for the checking account referenced in the ACH Data Setup rule.	Complete this when setting up the account for ACH payments.
Check Forms	Specifies the check forms used for payments from the account.	Select the forms when configuring the checking account.
Check Numbers	Defines the check numbers used for generated checks. By default, check numbers increase by 1 with each ACH transaction processed in Adjutant.	Configure the check numbering before processing ACH transactions from the account.

Generate AP EFT File

Field / Option	Description	When to Use
Account	Selects the account from which payment will be made.	Select the checking account configured for the ACH payment.
Transaction Date	Automatically populates with today's date.	Review this before generating the payment file.
First Check Number	Automatically populates from the check counter on the selected checking account.	Review this before generating the payment file.
Vendor Information	Identifies the vendor for the AP invoice to be paid.	Enter this when preparing the vendor's payment file.
Generate EFT	Generates the EFT file that can be saved and uploaded to your bank.	Use after selecting the account and entering the vendor information.

How to Use

1. Add the Vendor's ACH Data

1. Open the Organizations screen and select the vendor.
2. If the vendor does not already have the Vendor ACH/EFT Data attribute, click the plus sign in the green box on the right and add the attribute to the record.
3. Save the newly added attribute.
4. Click the underlined Vendor ACH/EFT Data attribute to open the EFT Data screen.
5. Enter the vendor's EFT/ACH data and click Save.

2. Configure the ACH Data Setup Rule

1. Open Rule Maintenance.
2. Select ACH Data Setup - ACHDATA from the dropdown.
3. Select New Rule Details to add a checking account to the rule.
4. Complete the GL Account, File Name, Format, and Batch Number fields using the descriptions above.

See ACH Data Setup Rule for related setup information.

3. Configure the ACH Checking Account

1. Open System Cash/Checking Accounts.
2. Add the ACH information to the GL Account referenced in the ACH Data Setup rule.
3. Select the check forms to be used for payments from this account.
4. Define the check numbers to be used for generated checks from this account.

By default, check numbers increase by 1 with each ACH transaction processed in Adjutant.

4. Set Up the Email Template

The following screenshot shows the EFT email template setup.

5. Generate the AP EFT File

1. Confirm that the AP check has been created and approved for payment.
2. Open Transactions > Accounts Payable > Generate AP EFT File.
3. Select the account from which payment will be made.
4. Review the Transaction Date and First Check Number. These automatically populate with today's date and the check counter from the selected checking account.
5. Enter the vendor information for the AP invoice to be paid.
6. Click Generate EFT.
7. Save the generated file for upload to your bank.

Expected Results

After Initial Setup

• The vendor has a Vendor ACH/EFT Data attribute containing the vendor's EFT/ACH information.
• The ACH Data Setup - ACHDATA rule contains the checking account and payment file settings.
• The corresponding System Cash/Checking Account contains the ACH information, check forms, and check numbering settings.

After Generating the File

An AP EFT file is generated that can be saved and uploaded to your bank.

File generation and upload to the bank are separate steps. Generating the file in Adjutant does not, by itself, confirm that the bank has received or processed the payment.

Related Topics

• Organizations
• EFT Data
• ACH Data Setup Rule
• Rule Maintenance
• System Cash/Checking Accounts
• Generate AP EFT File