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#405 Direct Deposit
If Supplement #405 Accounts Payable Direct Deposit has been installed, this option will appear on your Accounts Payable Processing menu.
Function
Accounts Payable Direct Deposit enables your GMS accounts payable processing software to prepare data for your bank to automatically deposit check amounts directly to vendor's bank accounts. File data is prepared in accordance with the National Automated Clearing House Association (NACHA) procedures - the standard followed by nearly all banking institutions. These procedures permit your bank to deposit funds into vendors' bank accounts even if they bank with another institution.
Things You Should Know
This program will only be operational after all required setup forms and files are completed.
Note: Should you use this supplement for the MS Virtual Roma direct deposit payments there is a specific Standard Entry Class Code setup. Please see the Help section for Tools\Organization\AP Direct Deposit for further details.
You should contact your bank for instructions on both communication for file transmission and any special requirements for the ACH (Automated Clearing House) direct deposit file before ordering this supplement. A check list for the bank is included with these instructions.
Before You Start - Questions to Ask Your Bank
Bank procedures and requirements for direct deposit vary depending upon the bank you may be using. GMS software and procedures have been designed to be consistent with most common bank practices.
There are two basic issues that need to be worked out with your bank.
First, you will need to agree upon procedures to transmit direct deposit data to the bank, communications package, schedules, passwords, etc.
Second, it is essential that the file generated using GMS direct deposit software corresponds to your bank's direct deposit requirements. To determine this, ask your bank the following questions:
Operating Instructions
GL Code: The default GL code to be credited for the direct deposits will appear as set up in Tools, Organization, Default GL Codes, Bank Account-AP. You can change the GL code at this point by clicking on the combo box arrow and selecting the desired cash bank account.
Posting Period: Enter the posting period for the direct deposits to be posted to.
Number of Prenotes: This field is for informational purposes only. It will display the total number of direct deposit prenotes that will be included in the file.
Date: This field should contain today’s date. It represents the date the direct deposit file was created.
Number of Live Accts: This field is for informational purposes only. It will display the total number of direct deposit to be included in the file.
Bank Settlement Date: This date should represent the date that the direct deposits are to enter the vendors’ accounts. It normally would be exactly the same as the Accounts Payable check date.
Bank Account: The Bank Account number will default to the AP Bank Acct as set up under Tools, Organization, AP Direct Deposit tab. If the bank account to be used for the current direct deposit is not the default account, you will need to enter the correct bank account number into this field assuming that the same routing number and security record information applies to the changed bank account.
Include Agency Name: Check this box if you are printing your direct deposit stubs on blank stock and you want the software to print your agency's name on the top left corner of each stub.
Create Direct Deposit: Enter the file name that will be used to submit the direct deposit file to the bank and make sure that this file is saved in the proper location. The file name that you enter must exactly match the bank approved file name. Caution should be used so that you do not have a typographical error or the bank will not accept your file. Enter the extension name for the file right in the file name field, i.e. apdd06-20.txt. Click on the Save button when finished.
The Direct Deposit Stubs will automatically appear on the screen in alphabetical order by using the alpha field in the vendor field. After you have selected the printer icon and they have all printed, close the file. After closing the display of Direct Deposit Stubs, the Direct Deposit Summary will display. When the Summary is closed, you will return to the Direct Deposit screen. If you do not have a button that shows Save Check Run, that means that you will be printing some accounts payable checks and you only need to click on the Exit button.
Include Addenda in the direct deposit file: Check this box ONLY if your bank requires the Addenda record (705 line). Addenda data is for Standard Entry Class code CCD and CTX and is not recommended for PPD. It is also not to be used for Prenotes.
Include DBA: If there is a DBA setup in the vendor file and it is to be included on the direct deposit stub, put a check in the box.
Check Formats: Select the format in which you wish to print the direct deposit stubs. The choices are:
Do not select Save Check until:
After the button has been selected to Save the Check Run, you will NOT be able to reprocess the direct deposit file due to the following:
Function
Accounts Payable Direct Deposit enables your GMS accounts payable processing software to prepare data for your bank to automatically deposit check amounts directly to vendor's bank accounts. File data is prepared in accordance with the National Automated Clearing House Association (NACHA) procedures - the standard followed by nearly all banking institutions. These procedures permit your bank to deposit funds into vendors' bank accounts even if they bank with another institution.
Things You Should Know
This program will only be operational after all required setup forms and files are completed.
- The first setup is a form that is found in Tools, Organization, AP Direct Deposit tab. All required/applicable fields must be completed. Follow the detailed instructions as found in the HELP files for Tools, Organization, AP Direct Deposit.
Note: Should you use this supplement for the MS Virtual Roma direct deposit payments there is a specific Standard Entry Class Code setup. Please see the Help section for Tools\Organization\AP Direct Deposit for further details.
- The second setup is to enter the applicable information for every vendor that has some type of Accounts Payable direct deposit, into the Vendor Entry screen. You must fill in all three fields. These fields are Bank Routing # which is the vendor’s 9-digit bank routing number, Bank Account # which is the vendor’s checking or saving account number and DD type. The types available are 22-Checking Live, 23-Checking Prenote, 32-Savings Live and 33-Savings Prenote.
- Accounts payable checks will not be issued for those vendors opting for direct deposit that have either the DD type of 22-Checking live or 32-Savings live in their vendor file.
- An optional print stub program is included to print check stubs for vendors using direct deposit and who have a voucher selected for payment.
- The Check Register will identify vendors with a direct deposit.
- A data file to be submitted will automatically be prepared instructing your bank on direct deposits.
- To void an A/P direct deposit, look at the check register that includes the A/P direct deposit that needs to be voided. Make a note of the negative check number. Go to A/P void check and enter the correct information for voiding.
- For a vendor who is set up on direct deposit, but you want to issue an A/P check one time, change the DD type to pre-note in their vendor master file.
- If you are issuing AP Direct Deposits and printing checks during Accounts Payable Processing, you must create and save the direct deposit file before you will be allowed to print checks.
You should contact your bank for instructions on both communication for file transmission and any special requirements for the ACH (Automated Clearing House) direct deposit file before ordering this supplement. A check list for the bank is included with these instructions.
- GMS direct deposit procedures follow the accepted banking procedure of "pre-noting" vendors signing up for direct deposit. This procedure alerts the bank of a vendor that has signed up for direct deposit. When vendors sign up, they are pre-noted during the next accounts payable processing run when they have a voucher selected for payment. This advises the bank and enables the bank to verify account numbers. During this pre-note period, the vendor will continue to receive an accounts payable check. When the bank notifies you that the vendor information sent is correct, you will manually change their vendor file to "active" status unless you checked “Automatic Prenote to Live” in Tools, Organization Information, AP Direct Deposit tab.
- Direct deposits can be sent to banks generally by the internet or via modem. You will need to work with your bank to set up the communications that will allow the file transmittal. Your bank may require a special record at the beginning of your file to allow it to clear bank security and allow the deposits to take place.
- The Accounts Payable Direct Deposit supplement allows each vendor to designate one bank account for direct deposit, either a checking or savings account.
- Direct deposit check stubs are designed to be printed on 8½ x 11 inch plain paper.
Before You Start - Questions to Ask Your Bank
Bank procedures and requirements for direct deposit vary depending upon the bank you may be using. GMS software and procedures have been designed to be consistent with most common bank practices.
There are two basic issues that need to be worked out with your bank.
First, you will need to agree upon procedures to transmit direct deposit data to the bank, communications package, schedules, passwords, etc.
Second, it is essential that the file generated using GMS direct deposit software corresponds to your bank's direct deposit requirements. To determine this, ask your bank the following questions:
- Do you require a special lead record(s) in the ACH file prepared for accounts payable? If so, you need a copy of that record from the bank.
- Is the direct deposit file a balanced file or an unbalanced file?
- What is the Destination Depository Financial Institution? (Your bank or the Federal Reserve)
- What should the direct deposit file be named and with what extension?
- Should the CCD Addenda Record be included?
Operating Instructions
GL Code: The default GL code to be credited for the direct deposits will appear as set up in Tools, Organization, Default GL Codes, Bank Account-AP. You can change the GL code at this point by clicking on the combo box arrow and selecting the desired cash bank account.
Posting Period: Enter the posting period for the direct deposits to be posted to.
Number of Prenotes: This field is for informational purposes only. It will display the total number of direct deposit prenotes that will be included in the file.
Date: This field should contain today’s date. It represents the date the direct deposit file was created.
Number of Live Accts: This field is for informational purposes only. It will display the total number of direct deposit to be included in the file.
Bank Settlement Date: This date should represent the date that the direct deposits are to enter the vendors’ accounts. It normally would be exactly the same as the Accounts Payable check date.
Bank Account: The Bank Account number will default to the AP Bank Acct as set up under Tools, Organization, AP Direct Deposit tab. If the bank account to be used for the current direct deposit is not the default account, you will need to enter the correct bank account number into this field assuming that the same routing number and security record information applies to the changed bank account.
Include Agency Name: Check this box if you are printing your direct deposit stubs on blank stock and you want the software to print your agency's name on the top left corner of each stub.
Create Direct Deposit: Enter the file name that will be used to submit the direct deposit file to the bank and make sure that this file is saved in the proper location. The file name that you enter must exactly match the bank approved file name. Caution should be used so that you do not have a typographical error or the bank will not accept your file. Enter the extension name for the file right in the file name field, i.e. apdd06-20.txt. Click on the Save button when finished.
The Direct Deposit Stubs will automatically appear on the screen in alphabetical order by using the alpha field in the vendor field. After you have selected the printer icon and they have all printed, close the file. After closing the display of Direct Deposit Stubs, the Direct Deposit Summary will display. When the Summary is closed, you will return to the Direct Deposit screen. If you do not have a button that shows Save Check Run, that means that you will be printing some accounts payable checks and you only need to click on the Exit button.
Include Addenda in the direct deposit file: Check this box ONLY if your bank requires the Addenda record (705 line). Addenda data is for Standard Entry Class code CCD and CTX and is not recommended for PPD. It is also not to be used for Prenotes.
Include DBA: If there is a DBA setup in the vendor file and it is to be included on the direct deposit stub, put a check in the box.
Check Formats: Select the format in which you wish to print the direct deposit stubs. The choices are:
- 11" stub-check-stub - if this option is selected you will be able to choose preprinted DD Notification if you have forms with words such as "Direct Accounts Payable Deposit Effective" preprinted on the form. If you do not select the preprinted option, the software will print these words on the Direct Deposit stubs.
- 11" z-fold self-mailer.
- Window envelope - this option includes the agency name and address to be printed to appear in the return address window.
Do not select Save Check until:
- all direct deposit stubs and checks have printed, been reviewed and verified for accuracy
- the direct deposit file has been created for the bank and verified for accuracy
After the button has been selected to Save the Check Run, you will NOT be able to reprocess the direct deposit file due to the following:
- current accounts payable information is posted to the appropriate CD related tables and the pre-check table has been cleared.
