Many companies pay their vendors with an Electronic Funds Transfer (EFT) instead of a check. An EFT transfers money from your bank account directly into your vendor's account.

Checks are not printed, but you must print EFT advices and reports in order to register that payment has been made. After the electronic transfer is made, you must retain these advices and reports for your audit trail.

For a vendor to be eligible to receive an EFT transfer, the following conditions must exist:

On the Manage Company Bank Accounts screen, the information must exist for your own bank account and the bank accounts of each of your EFT vendors. Review this information via the Print Vendor Bank Information Report screen.

On the EFT Info subtask of the Manage Vendors screen, the vendor should be active and identified as an EFT vendor as follows:

• The Bank ID field should contain your vendor's bank ABA that will be used for EFTs.
• The Bank Account field should contain your vendor's bank account number.
• The ACH Code field should contain one of the following values:
  • 22: A payment to a checking account
  • 23: A pre-note to a checking account
  • 32: A payment to a savings account
  • 33: A pre-note to a savings account.

  After your payee successfully receives a pre-note, his bank will be ready to receive an actual payment.

• Also on the EFT Info subtask, select the EFT Active check box to make the vendor active for EFT transactions.

Select vouchers to be paid via the Edit Voucher Payment Status screen. Following your company's guidelines, approval may be necessary.

You can prepare only one of your company's bank abbreviations at each time for EFTs. If you want to create EFTs for more than one of your company's bank accounts, you must create each account's EFTs separately.