Sending Payables EFT payments by electronic funds transfer (EFT) is becoming increasingly popular. It’s popular for several reasons:
- Reduces opportunity for fraud
- Reduces expense for check stock and printing/mailing supplies
- Reduces the amount of time related to processing payments
- Payees generally like it better
There are three steps to take if you want to implement payables EFT in your organization:
- You need to arrange with your bank to submit payment information via EFT
- You need to get the pertinent bank account information from all your vendors who want to be paid via EFT
- You need software to get the payment information from your ERP system and format it in manner consistent with you bank’s requirements
Payables EFT with Dynamics GP allows you to easily create an EFT file from the normal check writing process in GP. You can than send the EFT file to your bank for processing through the ACH system.
The most important thing and maybe the most difficult, is to define your bank’s EFT file format in Dynamics GP. There are a variety of file formats that are provided with GP. If you’re lucky, one of these formats will work for you.
If you need to create a file format from scratch or modify an existing one, there is an easy to use configurator that comes with the system.
Once you have the EFT file format defined, the recurring process in payables is easy. These are the things that happen:
- Identify routing codes and account numbers for each vendor that wants to be paid via EFT
- Create a check batch and indicate that it includes invoices that are to be paid via EFT.
- Create the “checks”.
- Create the EFT file.
- Send the EFT file to your bank using the method you and your bank have agreed on.
Here is the EFT file Format Screen:
Here is the screen into which you enter the vendor’s EFT information:
Interested in learning more? Register now for our EFT Payables webinar on October 13th at 10am!