Setting up EFT for Payables Management in Dynamics GP 2013 and Later – Part 1
This is Part 1 of 3 for Setting up Electronic Funds Transfer (EFT) for Accounts Payable/Payables Management in Dynamics GP 2013 and Later.
Starting with Dynamics GP 2013 and the Perpetual Licensing model, Electronic Funds Transfer for AP is included in the Starter Pack, which means this module is available to anyone using Dynamics GP 2013 and later!
This document will cover EFT for AP in the US. To get started, you first need to contact your bank and ask them for the AP Automated Clearing House (ACH) file format specifications. Some banks require unique information in the resulting NACHA file that is generated. Dynamics GP has the US NACHA-PPD, US NACHA-PPD+, US NACHA-CCD, and US NACHA-CCD+ file formats already available. These can be modified as needed, based on the requirements from your bank.
Start by ensuring your GP system has EFT Payables turned on.
Administration Page | Setup | System | Registration
If EFT Payables is not selected, go ahead and select it. The module info and tables should already be created, as this is part of the base system. This will turn on some buttons and menu items so that you can setup AP EFT.
Setup the EFT File Format
Financial Page | Cards | EFT File Format
Here you will setup the file format and requirements received from the bank. Usually a default file format will work, but this can be customized if needed. For corporate accounts, use the US NACHA-CCD or CCD+ formats (CCD+ enables additional addenda records if desired). Use the PPD or PPD+ for personal checking accounts.
If you want to see where the information is coming from, or set the value for a constant, hit the double-down arrow on the right side of the grid header. This will show you the window and field (or constant value) being used. Here you can edit any requirements from your bank.
Now that the AP EFT File Format is set, you can associate it with your checkbook in GP. Multiple File Formats can be defined, but a given checkbook can be associated with one File Format. These EFT File Formats can also be exported and imported.
Setup the GP Checkbook for AP EFT
Financial Page | Cards | Checkbook
Select the desired checkbook to work with. Click on the EFT Bank Button to open the EFT Bank Maintenance window.
In the Checkbook EFT Bank Maintenance window, enter some default bank information.
Highlighted are common fields and information required by the bank. Also, make sure the IS Currency Code matches on this form and what is setup in your GP Currency ID. Once the needed information is filled in, hit the Payables Options button.
Select file locations for the output that will be generated. This can be a local location, or a network share location. I also like to mark Use EFT Numbers instead of using a check number, as these are more easily identified in any Smartlists and Inquiries. This is where you also match the EFT File Format created earlier with the checkbook.
A Prenote can be generated from this window as well, to test the file layout with the bank. Simply hit the Generate Prenotes button and fill in the info and Process. This will create a file in the specified location that you can send to your bank for them to test.
Ok out of those windows to save the EFT Bank information for the checkbook.
Now your vendors need to be setup as EFT enabled.
Vendor EFT Setup
Purchasing Page | Cards | Vendor
By default, GP will use the Remit To Address ID as the default for where to send checks and AP EFT information. Click on the blue Remit To link to open that Address ID for the Vendor record. This is where you can specify the EFT information – per Address per Vendor.
Click on the EFT Bank button to get into the details.
The highlighted information is typically required. Make sure the Currency ID matches what is on the EFT Checkbook setup. Once this information is filled in and saved, the Vendor can be included in an EFT check run.
At this point the core setup of AP EFT is complete. However, GP 2013 and later has the ability to send a Word Template Remittance file to the vendor.
Learn how to setup Word Template Remittance in Part 2 of Setting up Electronic Funds Transfer (EFT) for Accounts Payable/Payables Management in Dynamics GP 2013 and Later. Part 3 covers processing a EFT Check Run.