EFT for Payables is an easy way to pay your vendors electronically, rather than printing manual, paper checks. Payees typically prefer this method, and it will help you reduce check fraud, check processing time, and postage. Do not forget about employees loving you for using less paper and "Going Green".
EFT (Electronic Funds Transfer) for Payables lets you send an EFT payment instead of a check to your vendors using ACH. Sending an EFT instead of a check from Microsoft Dynamics GP should be a very straightforward task. All you need to do is generate the file, upload it to your bank, and your bank will distribute the funds... that's it! To make things even easier, you can perform email remittances directly within GP. A major benefit of EFT is that it can reduce administrative costs, simplify bookkeeping, increase efficiency, and ensure greater security.
Steps to Set Up EFT for Payables
Clients have asked us to help set up Electronic Funds Transfer payments (EFT) in Dynamics GP. EFT payments can save time and be implemented quickly. EFT payments can be processed just like paper checks once they are set up, so your GP users will be able to use it very quickly. Additionally, your vendors will appreciate receiving funds directly into their accounts rather than having to wait for checks to arrive in the mail to be deposited.
For Dynamics GP to begin processing EFTs, several steps must be completed:
1) Enroll in your bank’s EFT Program
2) Get the EFT File Format from your bank
There isn’t an industry standard configuration so you will need the format requirements for each of your banks.
3) Get the banking information from vendors
4) Do they have to register for EFT Payables with Dynamics GP?
5) Configure GP – Here is where we come in; let us help!
a. Set your checkbooks up for EFT payments
b. Set your vendors up for EFT.
Enter the vendor information for each vendor: – name, address, and banking details. Click the ‘Enable Electronic Payment’ button. The vendor is setup as an EFT payee.
c. Set up email remittances to your vendors
d. Test the file to ensure bank can make payments and vendors receive email notice.
Generate a EFT for Payables output file containing a couple of transactions and upload it to the bank. The bank will verify the data format meets their requirements. If the file is rejected, you will need to modify the file configuration and resubmit the file. Output file configuration issues normally are solved within a couple of tests file submissions.
Need detailed instructions for setting up EFT for Payables? Click here
6) Use EFT in your AP process
You are ready to use EFT as part of your AP Process. Select EFT as the payment option when processing Account Payable. Generate EFT files, instead of a paper check, and automatically email remittances to vendors.
Need detailed instructions for regenerating EFT for Payables file? Click here
EFT for Payables is fast, secure, and efficient. If you want to streamline your accounts payable process, give Dynavistics a call and we will help.
Benefits of Using EFT for Payables
1) Customer Satisfaction
Vendors prefer EFT because they receive cash in their bank account quicker and with less effort than a paper check.
2) Increase Process Efficiency
With Microsoft Dynamics GP ETF, you can reduce manual processes and automate your payment processing. Also, you can process invoices and payments from anywhere freeing you from the office. You will spend less time on manual tasks associated with the check printing process and reconciling the bank statement, as you will not have to confirm every check cleared. The total amount for the entire EFT file will appear as one amount on the statement from your financial institution. Setting up and using EFTs in Dynamics GP is a simple way to save time.
3) Save Money
While the set up in Dynamics GP takes a little time, processing EFT payments takes less time than processing paper checks, freeing up your team for more productive tasks. Add to that savings on office expenses like postage, envelopes, check stock, and toner and EFT payments just make good financial sense.
With EFT for Payables, you can rest easy knowing that your payments are being verified by the bank and your Account Payable process is streamlined. This is a great way to reduce fraud and increase efficiency in your business.
Take the time to start using EFT payments in Dynamics GP today! If you would like assistance setting up or using SafePay, please contact Dynavistics!
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Dynavistics is here for you
Do not worry, you have Microsoft and Dynavistics Support for years to come. You can plan what is right for your firm and select the timeframe that works for you. Dynavistics is happy to provide full and accurate information so you can make the right choice at the right time for your firm. If you have any questions or want to discuss your future ERP plans or want help with ERP planning, feel free to contact me at firstname.lastname@example.org.
If you have any questions about Dynamics GP or BC, NetSuite, Acumatica, or general questions about how we can help you, contact Dynavistics today!