Steps
to Add a Direct Deposit Header RecordFollow the steps below to set up direct deposit for your vendors in Accounts Payable.
Step 1: Obtain and Enter Bank Information
Define the necessary direct deposit header record(s) with your bank information and tie to the appropriate checking account(s). Contact your bank to obtain the information needed to complete certain fields; it may be helpful to do a print screen and then take the printout to your bank for completion. Also, if applicable, define the necessary direct deposit debit record(s) and tie to the appropriate checking account(s).
Note: If direct deposit will be processed from only one checking account, define just one direct deposit header record, and then only if required by your bank, define one direct deposit debit record; when completing a check cycle, only one direct deposit file will be created. If direct deposit will be processed from two or more checking accounts, complete one of the following: (1) define multiple direct deposit header records (one for each checking account) and only define a direct deposit debit record(s) if required by your bank (one for each checking account requiring a debit record); then when completing a check cycle, multiple direct deposit files will be created; or (2) define one direct deposit header record (for the primary checking account) and then create multiple direct deposit debit records (one for each of the other checking accounts, and also for the primary checking account if required by your bank); then when completing a check cycle, only one direct deposit file will be created containing multiple debit records. For method 2, if the checking accounts are at different banks, first contact your bank of the primary checking account to determine if they are able to handle this.
Steps
to Add a Direct Deposit Header Record
Steps to Add
a Direct Deposit Debit Record
Step 2: Obtain Authorization Forms
Each vendor requesting direct deposit needs to complete and sign an authorization agreement and provide a voided check or deposit slip. Your bank may provide a bank authorization form for you to have each vendor complete, or you can utilize the sample authorization form below.
Note: Some banks do not print the bank routing number on their deposit slips. In this case, you will need a voided check.
Example
of a Direct Deposit Bank Authorization Form
Step 3: Set Up Direct Deposit Stubs
Add a new check setup for the Accounts Payable direct deposit stubs using the Check Setup - Vendors option.
Steps
to Add a Check Setup for Vendors
Step 4: Define Direct Deposit Banks
Define the direct deposit banks used by the vendors.
Steps to Add a Direct Deposit
Bank
Step 5: Enter Direct Deposit Information for Each Vendor
Enter the direct deposit information for each vendor that will have direct deposit.
Steps
to Enter Direct Deposit Information for a Vendor
Step 6: Create and Submit a Direct Deposit Prenotification File
Create a direct deposit prenotification file and submit the file to your bank in order to have your bank test the Accounts Payable direct deposit information (including the routing numbers and account numbers) prior to completing your first check cycle with direct deposit. Contact your bank to determine how many days to allow for testing the direct deposit prenotification file before your first check cycle.
Steps
to Create a Direct Deposit Prenotification File
Step 7: Create a Direct Deposit File During an Accounts Payable Check Cycle
During an Accounts Payable check cycle, create a direct deposit file to submit to your bank. The direct deposit file should be created after verifying the reports and direct deposit stubs to ensure the information included in the file is correct.