As a top Microsoft Dynamics 365 Business Central partner, we’ve helped many of our clients move their paper payment processes to ACH. In fact, our support desk experts have had so many questions about how to move from paper to ACH, that they’ve broken it down for you step-by-step below.
Step 1: Gather Information
- ACH file layouts from Bank and the standard entry class code
- Compare layout to Base NAV file NACHA layout. If they do not match then, the Data Exchange Definition will need to be changed or created. Reach out to Velosio for assistance as this process can be a little tricky.
- Vendor Bank Account information: Bank Account No., Transit No., Bank Branch No., Email addresses for Remittance Advices)
Step 2: ACH Setup
Setup Company Information
- Check Company Information card for Federal ID number
Setup Bank Account Card
- Bank Account No.
- Transit No.
- Bank Branch No. (optional)
- Make sure Last Remittance Advice Number is entered
- Payment Export Format (data exchange definition)
- Add the ACH Data Exchange Definition to be used
- E-Pay Export File name
- Country Export Format
Setup Vendor Bank Account Card
- Go to Vendor Card; navigate to Bank Accounts
- On Vendor Bank Account card, fill in the following: Vendor Bank Name, Bank Account No., Transit No., check the Use for Electronic Payment box
Setup Vendor Card
Set the Preferred Bank Account Code on Vendor card – there can be multiple but, this is the default that is pulled into the Payment Journal Recipient Bank Account field.
Setup Document Layouts – Remittance Advice
- Navigate from Vendor Card to Document Layouts
- Setup Document Layouts for Remittance Advice Send to Email address (Report ID 10083)
- May add multiple lines if multiple users need to have remittance advice emailed to them
- Setup the Batch Template to set the ACH Bal. Account Type to Bank Account and the Bal. Account No. the bank setup for ACH
- Make sure the Allow Payment Export is checked
- Select Batch that had been setup for ACH
- Suggest Vendor Payments – select Electronic Payments
When the payment journal has been populated, the Recipient Bank Account will pull from the default Preferred Vendor Bank account from the Vendor card. You can change the Recipient Bank Account in the payment journal if a different account should be used. The Bank Payment Type will be Electronic Payment.
- Navigate to Bank, then Export
- Select the Bank Account No. from payment journal
- Select Output Method
Create EFT File to upload to Bank
- Go to Actions, Functions, Generate EFT File to upload to your Bank
- Click Generate EFT files
- A file will be downloaded for you to save and upload to your Bank
- Upload file to Bank – Verify with Bank that the file uploaded properly
If needed the file can be opened using NotePad.
Post the Payment Journal
Prior to Posting, verify that the file was uploaded to the Bank.
Navigate to Post/Print
- Preview Posting allows you to review the entries prior to being posted – it does not Post Journal
Congratulations, now you have successfully moved your paper payment process to ACH in Dynamics 365!
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