Configuring EFT for Payables in Dynamics GP 2010

Thoughtware Article Published: Jun 20, 2012
Person coding

Business Ready Licensing—the licensing model introduced a few years ago by Microsoft for Dynamics GP—gives users access to a suite of modules rather than requiring the purchase of modules a la carte (although some modules, like Payroll, remain a la carte purchases). With Business Ready Licensing, users get a variety of modules to implement as part of the initial implementation of core financial modules like General Ledger and Payables Management.

EFT for Payables is one of those modules often left out of the initial implementation, and users and consultants sometimes forget it even exists. The good news:  Configuring EFT for Payables is a straightforward process. Follow three steps, and you are ready to send a file to the bank for review!

Let’s start from the beginning.

Registration window

Administration Page | Setup | System | Registration

Registration Window

Confirm EFT Payables is selected as active in your registration window (in GP 2010, EFT for Payables is installed automatically as part of the core installation). Next, you will need to configure the EFT File Format.

EFT File Format Maintenance

Financial Page | Cards | EFT File Format

EFT File Format Maintenance

Typically, you will need to get some specifications from your bank to confirm the correct format type. Then you can enter the EFT Format ID (I typically use the bank name) and description and select the Format Type. US NACHA PPD and US NACHA PPD+ (which includes an addendum with additional information about the invoices paid) are fairly common when issuing vendor payment via EFT. Once you select the format type, available line types and corresponding fields will default. This information can be edited for bank-specific requirements as needed.

Now we can associate the EFT file format with the checkbook to be used for issuing EFT payments.

Checkbook EFT Bank Maintenance

Financial Page | Cards | Checkbook | EFT Bank button

Checkbook EFT Bank Maintenance

First, select United States as the Bank Country/Region. Then enter the information necessary to complete the desired EFT File Format. The screenshot above highlights some of the key fields to be completed—typically with information provided by the bank—so the EFT file is properly populated. Once the information is entered, click “Payables Options.”

Checkbook EFT Payables Options

Financial Page | Cards | Checkbook | EFT Bank | Payables Options

Checkbook EFT Payables Options

Now you can specify whether to use check numbers or EFT numbers for EFT payments, whether to require prenotes before a vendor can be issued an EFT and the paths to the output file to be sent to the bank. In the upper right-hand corner, you also can select the EFT File Format you previously configured.

This window also is used to generate prenotes to be sent to the bank; when prenotes are required, this is a handy way to test the EFT file format and validate that routing and account numbers have been entered properly for your vendors.

Once the checkbook has been configured for EFT, you can set up EFT information for your vendors.

Vendor EFT Bank Maintenance

Purchasing Page | Cards | Vendors | Addresses button | EFT Bank button

Vendor EFT Bank Maintenance

EFT Bank information should be set up on the necessary “Remit To” addresses for the appropriate vendors. When a “Remit To” address with EFT Bank information is used on a payables transaction, the transaction will be picked up to be paid by EFT, assuming the vendor has met any prenote requirements and the checkbook used also has been configured for EFT.

In the Vendor EFT Bank Maintenance window, select United States as the Bank Country/Region. Then enter the information necessary to complete the EFT file format selected. Key fields requiring completion are the Transit Routing Number and Bank Account Number for the vendor.

Once this information is configured, you can begin testing and ultimately using the EFT for Payables module in Dynamics GP. We will cover the use of EFT for Payables in transaction processing in a future blog post.

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