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Configuring Electronic Fund Transfers (EFTs)

Use the following procedures to configure Electronic Fund Transfers. 

Important Note: Before you begin, you should log in to Sparkrock 365 using the Accounting Manager Role Center.

Step 1: Setting up Bank Accounts for EFT

The banks you use within your organizations are each stored as a separate Bank Account card. For bank accounts that you want to use for processing electronic payments – for sending payment to vendors, using direct deposit for leave continuance, and defining pre-authorized payments, you need to provide some additional information.

Within the Bank Account card, there are two tabs; Posting and Transfer, which relate directly to the electronic fund's transfer process. The details you need to provide in these tabs are described in the following sections.

Note: To use EFT you must provide the bank number in both the Bank Institution No. and the Transit No. fields on the Bank Account card.

Accessing the Bank Account Card

To access bank account information:

  1. Log in to Microsoft Dynamics 365 Business Central.
  2. Click Tell Me and search for Bank Accounts. Select the page from the drop-down list.
    The Bank Accounts page displays, showing a list of bank accounts set up for your organization.

    bank_accounts.png
  3. Double-click the bank account you want to configure.
    The Bank Account card for the selected bank opens.

    bank_account_card.png

Providing Posting Information

The Posting section enables you to track your EFTs with a specific numbering system, to post the transactions to your Bank, and check ledgers for reconciliation/accounting purposes.

To provide the required posting information:

  1. On the Bank Account Card, expand the Posting FastTab.

    posting_fasttab.png
  2. Complete the following fields:
    • Last Remittance Advice No.: This field is used to configure the Remittance Advice number sequence. Enter the starting point for the serial number to be used as the Remittance Advice document number.
    • Bank Account Posting Group:  You must link the bank account to a G/L Account.
  3. See Providing Funds Transfer Details to continue the process.

Providing Funds Transfer Details

The Transfer FastTab is where you specify the required details for initiating an EFT. For example, you need to provide the banking institution details, the appropriate file formats, and the fund type for processing transactions from the bank to your vendors.

To provide the required transfer information:

  1. On the Bank Account card, expand the Transfer FastTab.

    ETF_Transfer.png
  2. Complete the following:
    • Country Export Format: Specify the appropriate export format. For Canada, choose: CA
    • Payment Export Format: Specify the EFT Export format.
    • E-Pay Export File Path: Specify a full directory path, starting with the drive letter and ending with a backslash (\). The file name is not included here. This is where the Export file is placed when it is created. For example: c:\test\
      Note: This setting is for Payroll use only.
    • E-Pay Export File Name: Specify the E-Pay export file name. Do not include the path.
      Note: This setting is for Payroll use only.
    • Client No.: Specify your client number, as provided to you by your bank.
    • Client Name: Specify your client name, as is provided to you by your bank.
    • Input Qualifier (Y): Specify the input qualifier, as provided to you by your bank.
    • Originator ID: Specify the Originator ID, as provided to you by your bank.
    • Originator Short Name: Specify the Originator Short Name, as provided to you by your bank.
    • Originator Long Name: Specify the Originator Long Name, as provided to you by your bank.
    • Data Center: Specify the appropriate data center, as provided to you by your bank.
    • Bank Code: Specify your bank code.
    • Transit No.: Specify your bank account Transit Number.
    • Bank Account No.: Specify your bank account number.
    • Bank Institution No.: Specify your bank account branch number.
  3. See Providing Payroll Information to continue the process.

Providing Payroll Information

The Payroll Setup page is where you specify payroll information that is required as part of the ETF process.

To provide the required payroll information:

  1. Click Tell Me and search for Payroll Setup. Select the page from the drop-down list.
    The Payroll Setup page displays.
  2. Expand the ACH FastTab.
    ETF_ACH.png
  3. In the ACH File Export field, select either:
    • Client: the export file opens in the client.
    • Server: The export file is saved to a folder on the server
  4. In the ACH File Per field, select either:
    • Bank Account: creates the ACH file per bank account.
    • Employee Posting Group: ACH file per Employee Posting Group.
  5. Complete the other fields as necessary.
  6. (For Canadian EFTs only) Expand the CA Setup FastTab.
    ETF_CA_Setup.png
  7. In the EFT Export Type field, select the export type that corresponds with your bank.
  8. In the EFT File Creation No. field, specify the file creation number.
  9. In the ETF File Per field, select either:
    • Bank Account: creates the ACH file per bank account.
    • Employee Posting Group: ACH file per Employee Posting Group.

Step 2: Import or Create EFT Export Formats

Sparkrock 365 supports the following EFT Export formats:

The EFT Export Format is specified on the Bank Account card's Transfer FastTab. 

If necessary, you can modify and import the customized template. For more information, see Importing an EFT Format

Step 3: Report Selection - Purchase

You can set up default layouts for the Vendor Remittance and the email body text. The email body text supports only Word Layouts. The Word layout version of the Vendor Remittance Advice report can be customized by customers for both email body text and the remittance document itself.  

The report that is currently supported for vendor remittances is 23022305 Vendor Remittance Advice. This report has RDLC and Word versions and the Word version is the default one in Report Layout Selection. You can expect slower performance if you choose to make the RDLC report your default.

Report 23022305 Vendor Remittance Advice is the default one used when creating a new company. You need to manually set up the report to be used for email body text. 

Important: The standard Microsoft reports: 10083 and 11383 are not supported. Using one of these reports will result in unexpected outcomes during the emailing process. 

To set up the layout(s) you would like to use by default:

  1. Click Tell Me and search for Report Selection - Purchase. Select the page from the drop-down list.
    The Report Selection - Purchase page displays.

    EFT_Report_selection.png
  2. In the Usage drop-down list, select Vendor Remittance
  3. To change the report, specify the new ID in the Report ID field. Make sure the Use for Email Attachment checkbox is still checked.  
    Note: If you do not want to send attachments but just an email body, you can uncheck the Use for Email Attachment checkbox and instead check the Use for Email Body checkbox. In this scenario, attachments are generated in the Vendor Email Log so it is available for reprinting but will not be sent to the vendor. 
  4. To create an email Body, check Use for Email Body on the line and then on Email Body Layout Description to select the layout for the email body. On the page that opens click New from the Ribbon. Choose Insert Word Layout to insert a report.

    EDIT - INSERT BUILT-IN LAYOUT FOR A REPORT 
Report ID 
Report Name 
Insert Word Layout 
Insert RDLC Layout 
23068640 
Vendor Remittance Advice
    NOTE: You can have only one line with layouts for Vendor Remittances. If neither of the above checkboxes is checked, the EFT process will not generate a remittance log.
  5. Click OK.

Step 4: SMTP Information for Email Setup

The next step in setting up EFT transmission is defining your SMTP setup information for sending the remittance advice notifications automatically.

NOTE: For assistance in completing this task, consult your internal IT Department.

To add your SMTP Mail information:

  1. Click Tell Me, enter SMTP Mail Setup and select the page from the drop-down list.
    The SMTP Mail Setup card displays.

    smtp_mail_setup.png
  2. Complete the following:
    • SMTP Server: Enter your SMTP Server IP or name. 
    • SMTP Server Port: Enter your SMTP port number.
    • Authentication: Specify the authentication method. Options are Anonymous, Basic, or NTLM.
      NOTE: Consult your internal IT Department if you are unsure of what value to select.
    • User ID: Enter the User ID to be associated with this mail setup. This is optional and is based on the method of authentication selected. For example, if you selected either Anonymous or NTLM authentication, then a user ID and password are not required and these fields are not editable.
    • Password: Enter the Password to be associated with this mail setup. This is optional and is based on the method of authentication selected. For example, if you selected either Anonymous or NTLM authentication, then a user ID and password are not required and these fields are not editable).
    • Secure Connection: Turn on this slider if a secure connection is required.
    • Sender Name: Fill in a default sender e-mail. (Not required for EFT but required for completing the SMTP setup.)
    • Sender E-mail Address: Fill in a default sender name. (Not required for EFT but required for completing the SMTP setup.)

Step 5: Purchase and Payables Setup

The next step in setting up EFT transmissions is configuring the Purchase and Payables page.

Defining Remittance Advice Additional Emailing Options

You can specify additional options in relation of how the vendor remittances will be emailed to the applicable vendors.

To set up the additional remittance advice emailing options:

  1. Click Tell Me and search for Purchases & Payables Setup. Select the page from the drop-down list.
    The Purchases & Payables Setup card displays.

    purchase_and_payable_setup.png
  2. Expand the Vendor Remittances FastTab.
  3. Complete the following:
    • Remittance cc: Email: Enter the email address that will be added as cc: on the remittance advice email. The from to email is a generic e-mail and entering a value in this field will allow you to have a copy to an email address for  vendor remittances in addition to the generic email. This step is optional.
    • Remittance Email Subject: Enter text to appear in the Subject line. For example, Remittance Advice. If no subject has been specified in this field, the email subject will display the company name and the vendor name.

Step 6: Company Information Setup

You’ll need to makes sure your federal Business Identification Number (BIN) is recorded before you can initiate EFT.

To record your Federal BIN number:

  1. Click Tell Me and search for Company Information. Select the page from the drop-down list.
    The Company Information card opens.

    company_information.png
  2. In the Federal ID No. field, enter your business number.

Step 7: Adding the EFT as a Payment Method

If this is not previously set up, you need to define EFT as a unique payment method to identify entries as Electronic Payment when selecting a vendor to pay.

To add EFT as a payment method:

  1. Click Tell Me and search for Payment Methods. Select the page from the drop-down list.
    The Payment Methods List displays.

    payment_methods.png
  2. On the Action Bar, click New.
    A new line is added to the page.
  3. Complete the following:
    • Code: Specify a code for the new payment type. Use EFT for electronic funds transfer.
    • Description: Provide a brief description. For example, "Electronic Funds Transfer".
    • Bal. Account Type: Specify the type of account that a balancing entry is posted to. Options are Bank Account or G/L Account.
    • Bal. Account Number: Specify the number of the general ledger, customer, vendor, or bank account that the balancing entry is posted to.
    • Verify Vendor Bank Account: Add a checkmark to this option to verify the vendor's bank account.
    • Use In Payment Request: Add a checkmark to this check box to indicate that the payment method can be used/be an option in Payment/Expense Requests.
    • Direct Debit: Add a checkmark to this check box to specify that this payment method is used for direct debit collection.
    • Direct Debit PMT. Terms Code: Specify the payment terms used when the payment method is used for direct debit collection.
    • PMT. Export Line Definition: Specify the data exchange definition in the Data Exchange Framework that is used to export payments.

Indicating EFT Payments for a Vendor

The Vendor card needs to be updated to indicate the appropriate payment method (EFT) for a vendor’s accounts payable transactions.

The selected method is then used as a default value when processing AP Invoices.

To indicate EFT as the default payment method for a vendor:

  1. Click Tell Me and search for Vendors. Select the Vendors List from the drop-down list.
    The Vendors List displays.

    vendors_list.png
  2. Double-click anywhere over the row for the vendor to which you want to update the payment method. (If your list of vendors in extensive, use the Filter fields to perform a search.)
    The Vendor Card opens for the selected vendor.

    vendor_card.png
  3. Expand the Payments FastTab.
  4. From the Payment Method Code drop-down list, select EFT.
  5. Repeat these steps for any vendors for whom you want to process payment using EFT.

Step 8: Setting up Vendors for EFT

For each vendor that you want to pay through EFT, you need to update the Vendor card to indicate that payment to the vendor will be made through an electronic funds transfer.

To record the vendor bank account information:

  1. In the Vendors list, double-click a vendor to open the associated Vendor card.
  2. In the Action Bar, click Navigate > Vendor > Bank Accounts.
    The Bank Accounts List displays.

    bank_account_list.png
  3. On the Action Bar, click New.
    NOTE: If the vendor already has the bank account card added, you can edit the existing one. Select the bank account line and on the Ribbon, click Edit.
    A new Vendor Bank Account Card displays.

    vendor_bank_account.png
  4. Expand the General FastTab.
  5. Complete the following mandatory fields:
    • Code: Enter a code for this entry based on your standard naming/number conventions.
    • Country/Region Code: Choose a value in this field. If this field is left blank, the exported EFT information might not be complete.
    • Bank Institution No.: Enter the vendor’s bank branch number.
    • Bank Account No.: Enter the vendor’s bank account number. Enter only the digits. Do not include hyphens, spaces, or any other characters.
    • Transit No.: Enter the vendor’s bank transit number.
    • Use for Electronic Payments: Turn on this slider to enable EFT.
    • Email Remittance Advice: Turn on this slider to indicate that the remittance advice should be sent by email. This must be checked off to enable the remittance advice to be sent.  
    • Email Remittance Address: To send an email statement to the vendor indicating the payment, enter the vendor’s email address here.

Step 9: Configure the Payment Journal Batch

The last step in configuring EFT in Sparkrock 365 is to ensure that the Payment Journal Batch has the Allow Payment Export option enabled. To do this:

  1. Click Tell Me and search for Payment Journals. Select the page from the drop-down list.
    The Payment Journals page displays. 
    payment_journal.png
  2. In the Batch Name field, click the drop-down list to view all available batches.
    The General Journal Batches page displays.
    general_journal_batches.png
  3.  Select the General Journal Batch that you want to use for EFTs, and add a checkmark to the Allow Payment Export checkbox.
  4. Select a Bal. Account Type to be Bank Account.
  5. Select a Bank Account No. from the existing list of bank accounts to be used with this batch.
  6. Click OK.
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