LA AP - Direct Deposit: Accounts Payable (1-03 )

If you are transitioning from Direct Deposit through Logos Ministry Connect to Logos ACH processing, please see our Help file on Transitioning from Ministry Connection to ACH Processing.

Logos Accounting lets you choose from two methods for making Direct Deposit payments — Web Services or Bank ACH. Either option automatically transmits payment data to move money from your bank account into specified vendor bank accounts. With Logos E-Pay, you may choose from several Gateway processors. Web Services is only available through the end of August, 2017. After that, only ACH Processing will be available.

How to set up your software for ACH Processing

Set up your system for ACH Payroll processing starting in File, Preferences, Banking.

Before you begin setting up Logos accounting for ACH Payroll Processing, you must contact your Bank and find out their requirements and their charges for using this service. If their requirements are agreeable to you, ask them if you can send a test payroll to ensure it is all set up correctly. Once you have the Bank's requirements follow the instructions below to set up Logos Accounting for Direct Deposit ACH Payroll Processing.

1. Mark Bank ACH under How is Direct Deposit Processed?

2. Next, Click the Bank ACH button and fill in the path where the Nacha file will be stored. Make sure it's an easy place for you to find. Note: if you are Hosted, the Path must be: M:\Temp\nacha.txt

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3. Finally, click on the Bank Accts button and make sure your Bank Info tab is filled out with your Bank Account Number, Bank Routing Number, Company ID (tax ID) and Account type. The Bank ACH information will populate automatically.

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4. On the Accounts Payable screen, select the Vendors button. Open the Personal tab for each vendor for whom payments are to be made electronically. Below the Address fields, mark the EFT Deposit check box and click on the Define Distribution button. Then click the Add button and enter the Type, Routing Number, Account Number, and Bank Name for the bank account into which the vendor wants money deposited.
If using Bank ACH software, your bank will likely require you to run a test to verify that it can read the data you are sending. To do so, follow these steps.


Run a Test Accounts Payable Transaction for Bank ACH

5. In Accounts Payable define your organization as one of your vendors. (Or you may use one of your members/employees as a test vendor.)

6. On the Personal Tab of this vendor check EFT Deposit and then click Define Distribution to enter the bank routing number and bank account for this vendor. Once this is defined the Accounts Payable Print Checks routine will automatically process payments to this Vendor via Logos E-Pay or Bank ACH as defined in your banking preferences. (Note: If you are using your organization as the Vendor your direct deposit routing number and account number will be the same as what is defined in Preferences/Banking/Bank Accounts. When you run the test invoice the result will be a debit and credit to your organizations bank account. If you choose to use an employee or member of your organization you will need to offset this test with a deposit back to your bank for the same amount.)

7. In Accounts Payable Individual Transactions create an invoice for this vendor in the amount of $1.00 and post.

8. Go to the Select Items for Payment and select this vendor for payment, by entering a “P” in the Type column next to the vendor name. Click print checks. You will first be prompted to verify the starting check number, as the print check routine first will print and commit any physical checks. Next you will be prompted to load Direct Deposit stock (blank paper will work), then print and commit your direct deposit items.

9. After posting and printing the direct deposit report an Export E-Pay/ACH to Processor dialogue box will open. Run this Export E-Pay/ACH (Direct Deposit) utility to create a text file (nacha.txt) and then run your bank’s direct deposit software. (In some cases you may just send the file to the bank via an email.) The nacha.txt file contains the data listed below:

 

 

10. Because of the variety of formats used by banks, your bank’s program may have different data requirements. After a successful test, remember to clear out the direct deposit information from your test vendor.

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