Record Vendor Payment by ACH in Accounts Payable

Lea McCormick

I am getting more and more vendors who require or prefer electronic payments. We do a select number of vendor payments, if there is a secure portal, via ACH. When processed, I cannot enter the invoice into FENXT Accts Payable or the Payable item never gets paid out. My process has been to enter a journal entry for any ACH or electronic payment. By doing so, my vendor data is not accurate or complete for 1099 reporting purposes and I cannot run an accurate vendor report. Does BB have a some solution? Is there a proven process that keeps my AP clean and in balance?

Kevin Brazell

@Lea McCormick
just enter the invoice and pick the payment type of Bank draft. That is FE's payment type for use with outside payments / electronic payments through other sources than FE"s own ACH.

Sharon Sherman

@Lea McCormick

I pay 95% of my vendors via ACH and they are all mostly 1099 vendors. We enter the invoices into AP and mark these payments as paid via bank draft. You can do this on the individual invoice record or also in Treasury.

Michelle Nielsen

@Lea McCormick we pay most of our vendors through ACH/EFT also. we don't use Bank Draft, we use Electronic Funds Transfer-EFT.

Jann McKenzie

@Kevin Brazell Unless you are using Blackbaud's EFT process where the ACHs go straight to your bank (which does not work with our bank), Bank Draft is the way to go. Use Bank Draft as a payment option instead of Check. Enter the invoice, then go into Treasury, pick your account, pick Bank Drafts, and then pay them. You may have to adjust the payment date unless you are posting the same day you are doing the ACHs. Default is today's date. Works really well. Generates a “check number” but does not print a check. You can use a different number sequence to keep them separate.