About Direct Deposit (EFT)

Direct deposit, also known as electronic funds transfer (or EFT), is a way for you to electronically transfer payroll checks from your company’s bank account directly to your employees’ bank accounts.

To make direct deposits, you must use Sage 300 EFT Direct Payroll.

Setting Up Direct Deposit

Before you can process direct deposit payments for your employees, you must set up your direct deposit system, as follows:

1. Set up Security.

   Decide which users will process EFT, and then assign them to a security group that has the authorization they need.

   EFT Processing security authorization restricts access to EFT options, employee’s EFT information, and EFT file creation (for Sage 300 EFT Direct Payroll) and direct deposit processing (for Sage 300 Direct Deposit). It works together with other payroll security options. For instance, you need both EFT Processing and Payroll Check Printing access rights to create EFT files or process direct deposits.

   To set up users and security, use the Users, Security Groups, and User Authorizations windows in Administrative Services. For additional help, press F1 while you are using one of these windows.

2. Set up information about the company's (employer's) bank account.
3. If you use Sage 300 Direct Deposit, specify an expense account for bank fees.
4. Set up employees' direct deposit (EFT) information.

5. At least five banking days before you need to process direct deposits, send prenotes to your employees' bank accounts.

   At least five banking days before you need to process direct deposits, send prenotes to your employees' bank accounts. The way you do this depends on the EFT solution you use:

   • the EFT solution that comes with Sage 300Sage 300 EFT Direct Payroll.
   • Sage 300 Direct Deposit.
6. Optionally set up to enable combining multiple EFT files into a single file for submission.

   Note: Sage 300 Direct Deposit does not support the EFT Combine feature.

Creating Direct Deposit Payroll

1. Calculate Payroll. Select the Create EFT Checks check box to include employees who are set up for direct deposit.

   Note: If your company uses Employee Level Security, a payroll supervisormanager or someone with access to all employees should print and review the Pre-Check Register. If you have only selection list access to employees, you may not be able to see all the employees for whom checks will be printed.

2. Print and post Payroll Checks.
3. Create EFT File.
4. If you have enabled the combination EFT files, and generate more than one EFT file, you can use the EFT Combine File window to combine the files into a single one before submitting it to the bank.
5. Submit the EFT file to the bank.

   Contact your bank or refer to their publications to determine their submission procedures. Your bank’s EFT (Electronic Funds Transfer) guideline documents or customer service should provide all the information necessary to submit files and validate the process.

1. Calculate Payroll. Select the Create EFT Checks check box to include employees who are set up for direct deposit.

   Note: If your company uses Employee Level Security, a payroll supervisormanager or someone with access to all employees should print and review the Pre-Check Register. If you have only selection list access to employees, you may not be able to see all the employees for whom checks will be printed.

2. Print and post Payroll Checks.

3. Do one of the following:

   • If you use the EFT solution that comes with Sage 300Sage 300 EFT Direct Payroll:

     1. Create EFT File.
     2. If you have enabled the combination EFT files, and generate more than one EFT file, you can use the EFT Combine File window to combine the files into a single one before submitting it to the bank.
     3. Submit the EFT file to the bank.

        Contact your bank or refer to their publications to determine their submission procedures. Your bank’s EFT (Electronic Funds Transfer) guideline documents or customer service should provide all the information necessary to submit files and validate the process.

   • If you use Sage 300 Direct Deposit, synchronize direct deposit transactions with Sage 300 Direct Deposit.