CH> Electronic AP

Electronic AP Pre-Note

 

Summary

 

The Pre-Notes process is used to verify that the bank account information entered on the vendor records is correct before you process the ACH transactions from AP module Computer Checks. After the bank account information has been entered on the vendor records (AP> Maintenance> Vendor> Details tab), you should process those vendors in a pre-note batch. The Pre-note process will create transactions with zero dollar amounts in order to verify that the bank account information is correct.

 

The transactions will be placed in an ASCII file. The format of that ASCII file will vary depending on your ACH processing bank (this is a relationship you will have to set up with a bank in order to process direct deposits). Your bank will probably send you some documentation on the expected format of that file. You will generally be able to use the toggles on the Export ACH File window (CH> Electronic AP> Export ACH File) to create that file. Once the file has been generated, send the file to your bank (your bank will determine how they would like to receive the file). The bank will process the file and verify that the bank account information on the vendor records is correct.

 

When creating a pre-note batch in the Electronic AP process, do not mix pre-note transactions with standard ACH transactions in the same batch. When you create a pre-note export file, you must check the Generate with zero amounts toggle. This toggle zeros out all of the ACH transaction amounts in the batch and modifies the format of the export file. If there are standard ACH transactions in the batch, they will not be processed correctly.

 

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     Select the vendors to include in the Pre-Note batch.

 

  • The Bank Account field is used to select the bank account that will be used to pay the ACH amounts. Since this is a pre-note batch, the balance of the selected bank will not be affected by this transaction.
    • Only bank accounts that are set up to be used with the Accounts Payable module will display in the drop-down menu (SS> Maintenance> Bank Account> Accounts Payable toggle).
  • Click ADD to add vendors to the pre-note batch. This will open the Vendor Selection screen.
    • Filter the displayed vendors using the search criteria fields and click the Select button to add the selected vendor to the batch.
      • The bank account information on the selected vendor records will be included on the pre-note batch file, but the selected accounts will not be affected by the pre-note transaction. The pre-note process is just verifying that the bank account information on the selected vendor accounts is correct.
  • Click the Submit button when complete.

 

4     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).

 

5     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.

 

6     Take a screenshot of the Export ACH File window after the pre-note batch file has been accepted by your processing bank. 

 

  • The screenshot of the Export ACH File window will provide a record of the toggle settings that create a file acceptable to your bank. If a toggle setting is changed and an electronic AP file is rejected, you can use the screenshot as a reference.
  • After the electronic AP file has been accepted by your processing bank, open the Export ACH File window and press CTRL+ALT+PRINTSCREEN.
  • Open a document and paste the captured image onto the document. Make sure to save the file in a location that you will remember.

 

7     Complete the batch. 

 

  • You can either delete or commit the batch. Since there are no amounts attached to the transactions in the batch, the GL Distribution report will not generate any line items (it will not affect the general ledger).
    • To delete the batch, click the Delete button on the batch on the Electronic AP screen.
    • To commit the batch, open the Commit screen (CH> Electronic AP> Commit) and click the Commit button .