The ACH function helps facilitate ACH exports for electronic payments and collections. ACH can be used for vendor payments, requiring setup in the Vendor Record, bank account record and bank record.
Paying Vendors by ACH
This process does not apply to ACH payments processed by R365 Payments.
If a vendor prefers to be paid by ACH, users can configure this preference on the Vendor record by changing the Payment Method to ACH. In addition to setting the Payment Method on the Vendor record, the ACH Report type must also be selected on the Bank record.
When a payment is created for the vendor, the payment run generates an ACH file which can then be sent to the vendor's bank for processing. If an ACH file was not exported at the time of the payment run, it can be exported using the ACH Export in My Reports. Restaurant365 is also capable of producing positive pay exports. Click here for information on the Positive Pay report.
Although most banks allow for ACH upload, contact your organization's bank to ensure that the account type is compatible with ACH uploads. Restaurant365 recommends sending your bank representative a sample of the available ACH report types.
Prepping the Vendor Record for ACH
On the Vendor Additional Info tab of the Vendor record, set the Payment Method to ACH and complete the following fields:
Bank Account Type
Bank Account Number
Routing Number
ACH Configuration Fields
By default, the legal entity name is included as the company name in the ACH export file, and the tax ID from the legal entity record associated with the payment run is used as the company identifier.
Users have the option to use the following fields on the bank account record for additional customization of ACH export files and to ensure compatibility with bank-specific requirements for ACH processing:
ACH Immediate Origin
Some banks require a unique company identifier, such as a customer number, instead of a Tax ID. This field allows entry of the bank’s specific identifier, ensuring the ACH file is processed accurately.
Character Limit: Alphanumeric, up to 10 characters.
Default Behavior: If left blank, the ACH export will use the Tax ID from the Legal Entity record associated with the Payment Run.
Best Practice:
Enter the required identifier as specified by the bank. If a leading character is required before the Tax ID, include it in this field.
Example:
Leading Character: A
Tax ID: 111111111
ACH Immediate Origin: A111111111
ACH Company ID
This field is used when a bank requires a specific company identifier, such as a customer number, instead of a Tax ID.
Character Limit: Alphanumeric, up to 10 characters.
Default Behavior: If left blank, the ACH export will default to the Tax ID from the Legal Entity record associated with the Payment Run.
Best Practice:
Include the required identifier, adding a leading character if specified by the bank.
Example:
Leading Character: A
Tax ID: 111111111
ACH Company ID: A111111111
ACH Company Name
The company name required by the bank for ACH file transmissions.
Character Limit: Alphanumeric, up to 16 characters.
Default Behavior: If left blank, the Legal Entity Name from the associated Payment Run will be used in the ACH export.
Best Practice:
Ensure the company name entered matches the bank’s requirements for successful processing.
These fields are not required. If left blank, the system will use the the legal entity name as the company name and the Tax ID as the company ID.
Prepping the Bank Record for ACH
The ACH Report field on the Bank record specifies the NACHA file format used when exporting ACH payment files. Users should review available ACH Export options and work with their bank to determine the best option for exporting ACH files.
Best Practice
It is recommended to begin this process early in setup to avoid potential delays in issuing payments.
Selecting a NACHA File Format
Bank-specific reports are intended for use with the named financial institution; however, compatibility is not guaranteed for all accounts within that institution, and these reports may also be used with other banks. The following table contains a few examples of ACH exports.
These exports were produced using the following sample data:
Vendor Name: Beverage Vendor
Vendor Bank Account Number: 999999999
Vendor Routing Number: 555555555
Payment Date: 05/02/2024
ACH Generation Date (Date Check Run was performed): 05/02/2024
Bank Routing Number: 123456789
Record Types: Varies depending on the bank and their coding preferences.
Checking Account: 1020 - Checking 1
Bank: Credit Union
Next Check Number: 516
Total Check Run (1 check): $615.87
Location: Location 100
Legal Entity: Legal Entity 1
Legal Entity Tax ID (EIN) Number: 777777777
Right-click the link and select Save As to save the .txt file to your device.
ACH File Specifications | Sample ACH Output |
|---|---|
| |
ACH Export (space) | |
ACH with Offset
| |
ACH Export CB&T | |
ACH Export TD Bank | |
ACH Export Valley National Bank | |
ACH Export Fifth Third Bank - Cincinnati | |
ACH Export Commerce West Bank | |
ACH Export Truist ACH Export | |
Huntington Bank ACH Export | |
Simple Payment Export | |