The Create EFT File process allows you to create an Electronic Funds Transfer (EFT) file in one of four different bank formats, pulling payment data from your processed payrolls. Once the file is created, you can then send it to your company bank to transfer funds for Direct Deposit payroll,
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You can also use the Create EFT File window to:
- Generate a test file, without having to Calculate Payroll and run Print/Post Checks. You can check the test file before you generate the actual file for submission.
- Regenerate a file to replace a past file.
- Direct deposits are calculated only for banks with a prenote status of Approved. If an employee is set up to be paid by direct deposit, but does not have a bank with a prenote status of Approved (specified on the EFT tab of the Employees window), the employee's paycheck is created as a physical check, not a direct deposit.
Generating an EFT File for Direct Deposit Payroll
You can use the Create EFT File window to create an EFT file to send direct deposit payments to your employees.
Before you start
- Define your company’s EFT defaults in Payroll Setup > EFT Options.
- Ensure that bank accounts for your employees have a prenote status of Approved (specified on the EFT tab of the Employees window).
- Run Calculate Payroll and Print/Post Checks to print and post your payroll.
- When calculating payroll, select the check box option for Create EFT Checks.
To Generate the File
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From the
- In theEFT Typefield, select Direct Deposit EFT.
- In the EFT File Type field, select one of the following:
- Original. Choose this if generating a file for the first time for a new payroll run. Sage HRMS Payroll automatically assigns a sequential number to the file that it creates. This number, known as the EFT Run Sequence Number, helps you identify the appropriate file when you need to print the Direct Deposit report using the EFT Direct Deposit report.
- Replacement. Choose this if generating a file to replace a past one. In the EFT Run Sequence field, use the Finder to choose the file you want to replace.
- Test. Choose this if generating a test file. This file will contain employees who are designated for direct deposit, but their paycheck amounts will be zero. You must run the Calculate Payroll and Print/Post Checks functions prior to generating a Test EFT file.
- In the Company EFT Bank field, use the Finder to select the company’s bank ID as it was entered in the Bank field of the EFT Options window and as was used for your payroll.
Note: You must select the same Bank ID to generate the EFT file as used for posting payroll.
- Specify the range of employees to include in this file.
- Specify the range of Pay Period End Datesto include in this file. For example, if you specify 09/15/2017 to 10/15/2017, then all direct deposit paychecks with a pay period end date within that range will be included in the file.
Note: The To Period End Date field is mandatory and must be specified.
- In the Effective Entry Date field, specify the date you want the bank to release the funds to your employees' bank accounts (the actual deposit date). You can choose the Use Employee Check Date option, or to use another date, choose Use Default Funds Available Date, and then enter the Default Funds Available Dateof your choice.
- In the Local File Path field, enter the location where the file will be created. Do not include the file name, as the file name is defined on the EFT Options window.
- In the File Creation Date, enter a date that meets the bank’s requirements. Refer to your company's bank’s specifications.
The system updates theFile Creation Numbersequentially, and includes it in the file contents. Do not change the File Creation Number unless you are replacing a previously canceled generation and your bank requires that you use the same creation number as before. The system also uses this number for naming the file when it creates the file for history.
Note: A complete history of all EFT files created is kept by the system, in your database files under \Company\CompanyID\Payroll. The file name is UPDIRECTFile creation #.BankID (italicized items are variables, and UP for U.S. Payroll, CP for Canadian Payroll). For example, for Sample Company Inc. with the bank PRBANK: if a file is generated with the file creation number 0012, the file would be SageHRMS\Company\Payroll\SAMINC\UPDI0012.PRBANK. Keep this in mind as you may want to erase files at some point to save hard disk space.
- Complete the File ID Modifier field, if you are generating multiple EFT files on the same date. Only upper case A-Z and numeric 0-9 are permitted in this field. So, if you send more than one file - for example, one for division A and one for division B — then the characters A and B or a similar unique code would be required. Otherwise, the bank sees the second file as a duplicate and will reject the file upon receipt. Some banks will require a specific pre-defined code, so you should confirm the procedure with your bank before you begin creating EFT files.
- Click to start the file generation. The system will inform you of any problems.
- When the file is successfully generated, the EFT Direct Deposit reportopens. Print the report now, or you can print it later from Payroll Transaction Reports.
- The program then creates a text file with the file name you specified in the EFT Options settings. You can view the file using a text editing program, such as Notepad.
- After the file has been generated, you can submit it to the bank following your company's bank's EFT procedures.