ACH Direct Deposit™ creates a NACHA file for the transfer of funds from the company's bank account to the bank accounts of employees and vendors. The NACHA file must be submitted to a vendor that processes such transactions.
Preliminary Setup
Complete the information in the Setup>Company Information>Nacha tab. Get the values for these fields from your Direct Deposit vendor or bank.
Complete the information on the Setup>Accounts>Banktab. If checks are currently printed for the client using blank check stock, then this information is already complete.
Create direct deposit payroll deduction items using Setup>Payroll Items. See the Payroll Reference Manual for specific instructions.
Click the Pay box to select a payee for payment, or right-click in the grid area and click Select All to pay all in the list.
Select the following options as required:
Suppress Bank Entry—Select this option to create an unbalanced file. (This setting is required by some private banks.)
Print origin ACH company Name—Select this option to display the Name from the Company tab in record position 64.
Print Transmitter Name—Select this option to display the Transmitter Info from the Nacha tab in record 1 position 64.
Check Summarize net if desired and select the desired Cash Type Account as the Net Offset Account (Cash Type).
Check Use escrow account to create the records to transfer the payroll funds from the client's bank to an escrow account and pay the employee from the escrow account. Select the appropriate account in the Escrow Account field and enter an Effective Date at least one day prior to the payroll date.
Check ACH.com Prefund and enter the desired prefund date if using ACH.com
Batch Hdr Svc Code 220—Select this option for Service code 220 in record 5 position 2. (This setting is required by some private banks.)
Batch Ctrl Svc Code 220—Select this option for Service code 220 in record 8 position 2. (This setting is required by some private banks.)
Use routing check digit—Select this option if the bank requires a check digit using the Routing Modulus 10 formula in record 6 position 12. (This setting is required by some private banks.)
After the file is created, a dialog box will open asking if the file was created properly. This gives you the opportunity to review the file. If No is selected, the EFT payees will remain in the list and the amounts will remain in the Liability Account. If Yes is selected the entries will be posted as follows:
If Summarize net is NOT selected, each individual EFT transaction will be posted as a debit to the account selected in the direct deposit payroll item. It will be posted as a credit to the selected bank account after the NACHA file is created.
If Summarize net is selected, each individual EFT transaction will be posted as a debit to the account selected in the direct deposit payroll item. It will be posted as a credit to the selected Net Offset Account. An additional transaction will be created to credit the bank account and debit the Net Offset Account for the total amount of the transaction.
Prefunded or Escrow Account
If an escrow or prefund account is used, enter all checks in the client's Bank Account.
Select Use escrow account.
Select the Escrow Account from the drop-down list.
Enter the Effective Date for the transfer to the escrow account.
Select OK.
The program will create two separate files. One file will have the word Escrow appended to the end of the file name. This file will have one transaction which will deposit the total amount selected from the checking to the escrow account using the Effective Date entered at the bottom of the window. The second file will have the words Dir Dep appended to the end of the entered file name. This file will transfer amounts from the escrow account to the individual employee bank accounts using the Effective Date entered at the top of the window. In the following screenshot, the File Name that was entered in the ACH Export window is 2015 0515 payroll. The two files the program created are named 2015 0515 payrollDir Dep and 2015 0515 payrollEscrow.
Undo NACHA file
If the payroll needs to be changed after the NACHA file has been created, but BEFORE it has been accepted and finalized, Undo the NACHA file.
Select Activities>ACH Direct Deposit.
Select the desired batch from Undoby batch drop-down list and click Undo. Only the last file created will be available to Undo.
All EFT transactions associated with the selected batch will become available again for selection to create a NACHA file. Edit the payroll as necessary and create a new NACHA file to be transmitted.
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