How to setup EFT for payables and generate the ACH file using Dynamics 365 Business Central

Electronic Funds Transfer

Both payees and accounting professionals love electronic funds transfer (EFT), and for good reason. It drastically reduces the time required to process payments, eliminates paper, and helps avoid fraud.

There are three windows that must first be set up properly to be able to use the EFT/ACH feature in Microsoft Dynamics 365 Business Central:

  • Company Information
  • Bank Account
  • Vendor Bank Account

Setting up Company Information

Populate the following fields with the company’s bank information:

Electronic Funds Transfer

How to Set Up the Bank Account Info

Enter the information related to the bank account that you will be producing EFT files. Be sure to enter a file name in the “E-Pay Export File Name” field.

In this example, we will work with the US EFT CCD file format.Electronic Funds Transfer

Open up the vendor card window and select the ‘default payment method code’ in the Payment section of the window. In this example, I set one up called US EFT (make sure the Bal Account Type is set to “Bank Account”).

Electronic Funds Transfer

Electronic Funds Transfer

Then while still in the Vendor Card, select Navigate > Vendor > Bank Accounts.Electronic Funds Transfer

Create a new vendor bank account card. Be sure to enter the bank account information in the General section per below.

Also enable the ‘Use for Electronic Payments’ button in the Transfer section.Electronic Funds Transfer

You are now ready to generate an EFT file for the vendor.

Enter and post a purchase invoice. Then go to Cash Management > Payment Journals.

Be sure to select the vendor bank account we set up earlier in the ‘recipient bank account’ field.

Also, select the Payment Method code as “US EFT” (also assigned to the vendor card).Electronic Funds Transfer

The Bal Account Type should be “bank account” and the Bank Payment Type should be “Electronic Payment.”Electronic Funds Transfer

After selecting the invoices for payment and completing the fields shown above, click Process > Export. This will generate the Remittance Advice for the vendors. They can also be e-mailed to the vendor.

Electronic Funds Transfer

Electronic Funds Transfer

After the remittances have generated, the entry must be posted (it cannot be deleted). This is controlled by the ‘Check Printed’ checkbox:Electronic Funds Transfer

Next, go to Actions > Functions > Generate EFT File.

Electronic Funds Transfer

Make sure all the payments are included and click Process > Generate EFT filesElectronic Funds Transfer

It will prompt you for a location to save the file. The file can now be submitted to the bank.Electronic Funds Transfer

With a few simple steps, you’re now ready to process payments using EFT/ACH in Dynamics 365 Business Central. For more Business Central tips, subscribe to our blog and be sure to visit (and subscribe to!) our YouTube channel.

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