Process direct payments.
A direct payment is a payment made to the account of the payee. For example, Jane rents a backhoe periodically from Acme Equipment Rental to complete general maintenance. She sets up a direct payment to withdraw funds from the organization's bank account and deposits those funds directly into the bank account for Acme Equipment Rental.
In this Topic Hide
1. Open Connect Accounts Payable > Organization > Organization.
2. Click to select the Direct Payments tab.
3. Use the sections in this help topic to complete the rest of the fields on the form. The field names are listed in alphabetical order.
The bank header is the information that prints in the first line of the ACH file.
What is the bank header?
The bank requires a standard bank header. Use the Bank Header field to type in the bank header that is supplied by the bank. The bank header precedes the ACH file.
The bank does not require a standard bank header. Leave the Bank Header field blank.
This field is always set to 10. The blocking factor is the number of records in a single block of records in the ACH file.
A company batch header is a record in the ACH file that includes information the bank requires to process the batch.
Important! Do NOT modify these fields. The information in the Company Batch Header Record Information will be included in the software update.
Company batch header record information
This field displays the Federal Tax ID that is assigned to the organization.
The organization that is sending the ACH file to the bank.
The bank that will receive the ACH file.
This field allows you to include additional information to identify the contents in the ACH file. For example, Payroll Deposit.
This field displays the entry type for direct payments. Entry class codes: PPD (Pre-arranged Payments and Payments), CCD (Cash Concentration Debit). To allow addenda records in the CCD or PPD entries, click to select the Allow Addenda Records checkbox.
This field displays the description that the system will use to fill in the Description field on the direct payment transaction. Example: Direct Payment
This is a single character (A-Z). The bank uses this character to identify the ACH file. You only need to assign a File ID Modifier when you will create and send more than one ACH to the bank that will process the ACH file.
This field is always set to 1. The format code is the number that indicates which ACH format is being used to code this ACH file.
Now, fill in these fields to enter the File Header Record Information. The ACH file includes the File Header Record information.
File header record information
This is the routing number of the bank that will receive the ACH file. Enter a blank space (click on the field and press the Spacebar once). Now, type in the routing number of the bank.
This is the federal tax number that is assigned to the organization. Click on the Immediate Origin field, enter 1 followed by the organization's federal tax ID.
The offset transaction type is the transaction type the system will use to record the payments made by customers to the organization. Usually, the offset transaction type is a deposit to a checking account.
Offset transaction type
What is the offset transaction type?
Record the transaction as a checking deposit. Use the Offset Transaction Type menu to select Checking Deposit.
Record the transaction as a checking payment. Use the Offset Transaction Type menu to select Checking Payment.
Record the transaction as a savings deposit. Use the Offset Transaction Type menu to select Savings Deposit.
Record the transaction as a savings payment. Use the Offset Transaction Type menu to select Savings Payment.
The organization that is sending the ACH file to the bank that will process the ACH file.
This field is the Federal Tax ID without the last digit.
This field is always set to 1. The originator status code is the code that identifies the entity that is responsible for creating the ACH file.
The offset bank is the bank that you will use to process direct payments.
Which bank will you use as the offset bank?
I know the offset bank name. Use the Offset Bank field to enter a bank name.
Help me find the offset bank name. Click the Offset Bank drop-down list to show a list of banks. Now, select a bank name from the drop-down list.
Show me additional information about the offset bank. Use the Offset Bank field to enter a bank name. Then, use the Offset Bank menu to select Additional Information.
I need to add a new offset bank. Use the Offset Bank menu to select Add New.
Enter 01 in this field. This field is always set to 01.
This field is always set to 094.
This field is usually set to 200. The service class code identifies the contents of the ACH file.