You will find that EFT for payables is a simple process to enable your business to pay vendors electronically, rather than having to print out cheques to process them manually. In the vast majority of cases, payees will want to use this method as it makes it much easier to spot fraudulent activity, reduces manual processing and having to post things out. Also, it does help your business to use less paper, which is much more environmentally friendly.
Electronic Funds Transfer known as EFT for Payables allows you to send out an EFT payment to replace sending cheques to your vendors through the use of ACH. In theory, being able to send out an EFT instead of using cheques from Dynamics GP should make things much easier for your finance team. All that is required is for you to generate the file, upload it to your bank then your bank will send out the funds that is all there is to it!
To make the process even more seamless, you are also able to make email remittances straight from your Dynamics GP solution. Some of the biggest benefits that can be gained from using EFT is the fact that your admin tasks take less time, you make bookkeeping more streamlined, you improve your overall efficiency and you improve your overall security.
How to set up EFT for Payables in Dynamics GP
Step 1: Enroll in your bank’s EFT Program
Step 2: Retrieve the EFT File Format from your bank
- You will find that there isn’t a one size fits all configuration so you will need the format requirements for each of your banks.
Step 3: Get the banking details from your vendors
Step 4: Do they have to register for EFT payables with Dynamics GP?
Step 5: You will need to configure your Dynamics GP solution – This is when you should get in contact with our team of GP consultants!
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Create your cheque books for all EFT payments
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Create your vendors for EFT
Input the vendor information for each individual vendor including details such as name, address and their banking details. Once you have completed this simply select the ‘Enable Electronic Payment’ button. Job done! The vendor is now setup as an EFT payee
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Create your email remittances for your vendors
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You will need to now test the file to make sure that the bank is able to send payments and that vendors get email notifications around this.
In order to test this EFT for payables output file, you will need to create one with a few transactions and upload it to the bank. At this point, the bank will confirm the data format needed to meet their criteria. If you find that the file has been rejected, you will need to make changes to the file configuration and resubmit the file again. You will find that most configuration issues can be overcome after a couple of test submissions.
Step 6: Make use of EFT in your AP processes
At this stage of the process, you are now able to make use of EFT in your AP processes. Simply choose EFT as the payment selection when you go to process accounts payable. Create EFT files, instead of using a paper-based version and then automate email remittances to vendors.
So, what advantages can be gained from using EFT for Payables in Dynamics GP?
1 – Reduce Costs
Despite the fact that setting up EFT in Dynamics GP can be time consuming initially, the processing of EFT payments is much quicker than manually doing them, enabling your team to improve efficiency and to spend time on more useful tasks. As well as this, it can reduce the costs associated with having to manually post things to vendors.
2 – Streamline Processes
Through the use of Dynamics GP EFT, you are able to streamline manual processes by automating your payments. As well as this, you are also able to process both invoices and payments from any location at any time. Furthermore, you will not be doing as many manual tasks such as reconciling the bank statement as you will not have to check every single transaction manually. You will notice that the total amount for the whole EFT file will be shown as a single amount on the statement from your financial institution.
3 – Improve customer satisfaction and build customer loyalty
It goes without saying but many vendors prefer to deal with EFT as they can get money quicker and don’t need to manually check anything.
Next Steps?
If you are a business that is looking to get EFT setup in your Dynamics GP solution, then please give our GP experts a call today to get started.
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