CH> Electronic AP

Electronic AP

 

Summary

 

The Electronic AP process is used to generate ACH transactions from AP module Computer Checks. Electronic AP module batches are automatically generated when a check is committed in the AP module Computer Checks process that is attached to an electronic AP vendor. AP module vendors are set up as electronic vendors by attaching a bank account and routing number to the vendor record using the Vendor Maintenance window (AP> Maintenance> Vendor> Detail tab). Click here for an overview on Electronic AP.

 

When electronic checks are created in the Computer Checks process (AP> Computer Checks), no journal entry is created. The journal entry that records the reduction to the GL cash account and the reduction to the AP module accounts payable account will not be recorded until the checks are committed in the Electronic AP process. The GL cash account credited in the transaction is the cash account attached to the bank account used to pay the check. The bank account used to pay the check is selected when the check is created in the Computer Checks process (AP> Computer Checks> Select Invoices> Pay From field). A GL cash account is attached to bank account using the Bank Account Maintenance window (SS> Utilities> Bank Account Setup> Open an account> Cash Account field). The AP module payable account is defined in the AP module Setup window (AP> Utilities> Setup> General tab> Payable Account field).

 

Use the Generate Pre-Note step if you would like to create a pre-note batch to verify that the bank account information on AP module vendors is correct. This will create an export file of transactions with a zero dollar amount that is in a pre-note format. Click here for information on Electronic AP Pre-Note.

 

Related Links

 

Click here for information on Vendor Maintenance.

Click here for information on the Void Checks process.

Click here for information on the Clear Transactions process.

 

Step by Step

 

1     Open or create a new Electronic AP batch. 

 

  • Electronic AP batches are automatically generated by the AP module Computer Checks process.
  • Open the Electronic AP window (CH> Electronic AP). The Batches window will display all the open Electronic AP batches.
  • Click here for information on Batch Processing.
  • Select a batch and click DETAILS to open the selected batch.
  • Select a batch and click the Delete button to delete the selected batch.
  • Click the Create New Batch button to create a new batch. This will open the Create Batch window.
    • If there are open batches in the Electronic AP process, you can create a new batch without affecting the open batches.
  • Click CREATE to create the new Electronic AP batch.

 

2     Open the Batch Overview page. 

 

  • The Batch Overview page provides a general overview of the selected batch.

  • The left navigation menu displays all the steps in the Electronic AP process.

  • In the main section you'll see information about batch steps that are currently processing, next available batch steps, and the last completed batch step.

    • Batch steps that are currently processing will display a blue indicator bar to alert you that the step has not yet completed.

    • Once the preceding batch step is complete, the next available batch steps will be enabled and you can select the next step you would like to run.

      • While some batch steps are optional, any batch step that includes the Required tag must be completed before the batch is allowed to proceed through to the Commit step.

  • The Batch Outputs section on the right will display any reports or exports that have already been generated in the Electronic AP process.

 

3     Print a proof list. 

 

  • Select Proof List from the Electronic AP menu.
  • Use the Sort By drop-down menu to sort the proof list by Vendor Name or Vendor Number.
  • The Proof List will list the electronic checks in the batch, the vendor bank accounts, and the total amount of checks that will be processed in the batch.
  • Once the required report settings have been specified, click the Print button to print your report.
  • Click the options arrow on the right side of the Print button to see other print options.
    • Select PDF to print the report in the default Springbrook format.
    • Select Excel to export the report data to an Excel spreadsheet as unformatted data.
    • Select Excel (Formatted) to export the report data to an Excel spreadsheet that includes much of the Springbrook formatting found on the printed version of the report.
  • Click the Schedule icon next to the Print button in order to schedule the report to generate at a later date and time.
    • Enter a Date and Time to generate the report and click SUBMIT.
    • Open the report when the process is complete to view the report.
  • The Proof List will display the Clearing House batch number, vendor number, vendor name, vendor bank routing number, vendor account number, and electronic check dollar amount.
  • If the bank account information on a vendor is incorrect, you can change the bank account information on the vendor record using the Vendor Maintenance window (AP> Maintenance> Vendor> Detail tab> ACH fields).

 

4     Create the export file to send to the ACH processing bank. 

 

  • The EXPORT ASCII File step is used to generate the export file that you will send to your ACH processing bank. The format of this file will vary depending on the expected format of your processing bank. Contact your bank for the specific format they would like the file and then use the options in the Export ASCII File window to generate the required file.
  • Once the proof list is printed, select Export ASCII File from the Electronic AP menu. This will open the Export ASCII File window.
  • The options on the export ASCII file are intended to be used in conjunction with ACH RULES: A complete Guide to Rules & Regulations Governing the ACH Network, published by the National Automated Clearing House Association (NACHA). Any text in CAPITALS is a direct reference to a field description in the ACH manual.  Record formats are taken directly from the ACH Manual.
  • Check the Use Routing Number for Immediate Origin toggle if you would like to replace the Federal Tax ID number in the file with the route, transfer and check digit of the Origin Bank. This will enable the Immediate Origin Code and Origin Name fields in order to enter the Origin bank information.
    • Click the Immediate Origin Code field search button to select a bank from a list.
    • Banks are created and maintained using the Bank Maintenance window (SS> Maintenance> Bank). The bank record contains the routing number of a bank.
  • Check the Use Destination Code as Immediate Origin DFI toggle if the immediate Origin DFI should be the immediate destination code.
    • If the Use Routing Number for Immediate Origin toggle is checked this toggle will not be enabled.
  • Check the Use Immediate Origin for Trace Number toggle if you would like the 'Immediate Origin' will be exported in the 'Trace number' position.
    • This will enable the Immediate Origin Code and Origin Name field in order to enter the immediate origin bank.
  • Check the Generate with Zero Amounts toggle to generate a pre-note file. This option is generally used on pre-note batches to verify the bank account information of customer accounts before processing transactions on those accounts. This will change all of the direct deposit amounts on the export fill to 0. This only changes the amount on the export it, it does not change the amount of the transaction.
    • TRANSACTION CODE (positions 2-3) of record type 6 will be incremented by 1 if this option is checked.
    • Default TRANSACTION CODE for Direct Deposits is 22 (Automated Deposit), pre-notification code is 23.
    • If a PPD Offset record is being created (Sweep Account option turned off, Include Offset turned on), the TRANSACTION CODE of the offset record will also be incremented by 1.
    • AFFECTS: Record Type 6, positions 2-3; Record Type 6, positions 30-39
  • Check the Use Sweep Account toggle to set the ‘Debit’ and ‘Total Debit’ fields on the export file to zero.
    • AFFECTS: Record Type 8, positions 21-32; Record Type 9, positions 32-43
  • Check the Suppress CR/LF toggle if you would like to remove the carriage return/line feed characters from the export file. This will compress the export file to a single line.
  • Check the Include Tax ID Start Digit toggle to add a digit in front of the IMMEDIATE ORIGIN field on the export file. This will enable the Start Digit field in the window to enter the start digit. The start digit value is generally one (1).
    • The federal tax identification number is set up in the System Setup window (SS> Utilities> System Setup> Organization tab> Federal Tax ID field).
    • The Include Tax ID start digit toggle will not be enabled if the Use Routing Number for Immediate Origin toggle is checked.
    • AFFECTS:  Record Type 1, position 15
  • Check the Include ANSI ID toggle if you would like to include the ANSI Identification Code Designator (ICD) on the export file. The ANSI ID Number will be placed in front of the COMPANY IDENTIFICATION field on the export file.
    • When the Include ANSI ID toggle is checked, the ANSI ID Number field will be enabled. Enter the IDC in the ANSI ID Number field.
      • Standard Identification Code Designators are: 1 for IRS Employer Identification Number (EIN), 3 for Data Universal Numbering Systems (DUNS), and 9 for User Assigned Number. Most Springbrook customers will use “1.” In the past, US Bank customers have been asked to enter a “2” in this field.
    • AFFECTS: Record Type 8, position 45. Record Type 5, position 41
  • Check the Send Account Number in Company Discretionary Data Field toggle to include the bank account number in place of the company discretionary data in the header row of the export file.
    • AFFECTS: Record Type 5, position 20.
  • The Start Digit field will be available if the Include Tax ID Start Digit toggle is checked. The value entered in this field will be placed in front of the federal tax identification number on the export file. The federal tax identification number is set up on the System Setup window (SS> Utilities> System Setup> Organization tab> Federal Tax ID field).
  • The ANSI ID Number field will be available if the Include ANSI ID toggle is checked. The value entered in this field will be placed in front of the COMPANY IDENTIFICATION field on the export file.
    • Standard Identification Code Designators are: 1 for IRS Employer Identification Number (EIN), 3 for Data Universal Numbering Systems (DUNS), and 9 for User Assigned Number. Most Springbrook customers will use “1.” In the past, US Bank customers have been asked to enter a “2” in this field.
  • The Use Tax ID field is used to add an organization-specific identification number to the export file. If your bank does not require this number on the ASCII file, do not enter anything in this field.
    • This field is limited to 10 characters and will display in the header record of the export file.
  • Enter the intended settlement date for the batch in the Effective Date field. The Effective Date field will default to the current date plus two days because two days are generally required by the bank to complete the file transfers.
    • The value in the effective date field will affect record type 5, positions 70-75
  • The Destination Name field displays the name of the bank you are sending the export file to. Click the Immediate Destination Code field search button to select the destination bank from a list. The name of the destination bank will populate in the Destination Name field.
    • AFFECTS: Record Type 1, positions 42-63
    • Banks are created and maintained using the Bank Maintenance window (SS> Maintenance> Bank). The Destination Name field will populate with the value entered in the Bank Name field on the Bank Maintenance window.
    • Changes to the bank name in the Destination Name field will not update the bank record that displays on the Bank Maintenance window. Modifying the bank name will only affect the value that displays on the export file.
  • The Immediate Destination Code field is used to select the destination bank. Click the Immediate Destination Code field search button to select a bank from a list. The routing number of the selected bank will populate in the field.
    • The Immediate Destination Code will display on the export file is a 10 digit field (one blank space, the four digit Federal Reserve Routing Symbol, the four digit ABA Institution Identifier, and the Check Digit).
    • AFFECTS: Record Type 1, positions 4-13; Record Type 5, positions 80; Record Type 6, positions 13-29
  • The Originator Status Code field is used to enter the ODFI initiating entry value. The appropriate Originator Status Code for most Cirrus customers is “1”.
    • Currently assigned Originator Status Codes:
      • ADV file prepared by an ACH Operator: 0
      • Depository financial institution that has agreed to be bound by ACH rules: 1
      • Federal government entity or agency not subject to ACH rules: 2
    • AFFECTS: Record Type 5, position 79
  • The Origin Name field will display the name of the sending point bank. This field will only display a value if the Use Routing Number for Immediate Origin or Use Immediate Origin for Trace Number toggles are checked. Click the Immediate Origin Code field search button to select a bank from a list.
    • AFFECTS: File header record, 23 positions
    • Banks are created and maintained using the Bank Maintenance window (SS> Maintenance> Bank). The Origin Name field will populate with the value entered in the Bank Name field on the Bank Maintenance window.
    • Changes to the bank name in the Origin Name field will not update the bank record that displays on the Bank Maintenance window. Modifying the bank name will only affect the value that displays on the export file.
  • The Immediate Origin Code field will display the routing number of the ACH operator or sending point of the file. This field will only display a value if the Use Routing Number for Immediate Origin or Use Immediate Origin for Trace Number toggles are checked. Click the Immediate Origin Code field search button to select a bank from a list.
    • The Immediate Destination Code will display on the export file is a 10 digit field (one blank space, the four digit Federal Reserve Routing Symbol, the four digit ABA Institution Identifier, and the Check Digit).
  • The Login Information field is used to enter a string of test data that will be added to the beginning of the file. This is an optional field and your destination bank will tell you what value to enter in this field.
  • Click the Submit button when complete to generate the export file. You can view the progress of the export on the Job Viewer window.

 

5     Print a GL Distribution report. 

 

  • The GL Distribution report will display the journal entry created by the Electronic AP process.
  • Select GL Distribution List from the Electronic AP menu. This will open the GL Distribution window.
  • The Journal Entry Date defaults to the current date but can be changed. Use the Tab key to update the fiscal period and year when needed.
  • Once the required report settings have been specified, click the Print button to print your report.
  • Click the options arrow on the right side of the Print button to see other print options.
    • Select PDF to print the report in the default Springbrook format.
    • Select Excel to export the report data to an Excel spreadsheet as unformatted data.
    • Select Excel (Formatted) to export the report data to an Excel spreadsheet that includes much of the Springbrook formatting found on the printed version of the report.
  • Click the Schedule icon next to the Print button in order to schedule the report to generate at a later date and time.
    • Enter a Date and Time to generate the report and click SUBMIT.
  • The journal entry created by the process will debit the AP module accounts payable account and credit the cash account attached to the bank account that will pay the vendor.
    • The AP module accounts payable account is defined in the AP module Setup window (AP> Utilities> Setup> General tab> Payable Account field).
    • The bank account that will be used to pay the vendor is set up in the Computer Checks process when the transaction is generated (AP> Computer Checks> Settings> Pay From field).
      • The cash account attached to a bank account is set up in on the Bank Account Maintenance window (SS> Maintenance> Bank Account> Cash Account field). The fund of the cash account is pulled from the AP module payable accounts.

 

6     Send an email to the vendors. This is an optional step. 

 

  • Select Send Notification on the Electronic AP menu. This will open the Send Notification window.
  • The information entered into the fields in the window will be used to create the email.
  • The Settlement Date field is the date the funds will be deposited into the vendor’s bank account.
  • The Email Template field is used to select the template that will be populated and emailed to the vendors. The Standard template will be selected by default.
  • The Contact Phone, Sender Name and Sender Email fields display the information that will display on the notification email.
    • The Sender Name and Sender Email fields are read-only and cannot be edited.

  • The CC Email and BCC Email fields are used to add carbon copy and blind carbon copy email recipients to the generated emails.

    • Up to 10 valid email addresses can be added to the CC Email field and up to 20 to the BCC Email field.

  • Click the Submit button to generate the emails.
  • An example of an email notification is below. The information that will populate from the Send Notification window is in bold.

    This is an email notification for an automated payment from Springbrook Customer.

     

    Vendor Account Number: <vendor account number>

     

    On <settlement date>, a total of $100.00 will be deposited into your designated bank account.  This payment is for invoices received, which are listed below:

    Invoice - Date - Description - Amount

    009223 - 09/07/2025 - <invoice description> - 100.00

    If you have any questions please contact us at <contact phone>, and ask for the Accounts Payable department.

 

7     Commit the Electronic AP batch. 

 

  • The Commit step will commit the journal entry generated by the Electronic AP process.
  • Select Commit on the Electronic AP menu.
  • Click the Continue button or press ENTER to commit the batch.  
    • If you click the Cancel button , you can still commit the batch via the Commit button .