Configuring Sage 100 for Vendor ACH Payments

Configure Sage 100 for vendor ACH payments to streamline AP processes.

To streamline vendor payments and reduce reliance on paper checks, Sage 100 offers the ability to process payments via ACH. Before using this feature, several key settings must be configured, starting with enabling ACH Electronic Payments in Accounts Payable Options.

View this Sage 100 step by step software tip with individual screen shots below. 

To set up ACH Electronic Payments: 

• Accounts Payable > Setup > Accounts Payable Options.

• On Tab #6, turn on the checkmark to “Enable ACH Electronic Payments.”

• Post to Bank Reconciliation in Detail – Enable this checkbox to show each individual payment on the Checks tab of Bank Reconciliation. Clear this checkbox to show a single summary total on the Dep/Adjust tab of Bank Reconciliation.
• Print Vendor Remittance Advice – Enable this checkbox if you want to print a remittance advice when processing electronic payments. Clear this box if you would rather have zero-dollar checks printed.
• Next Vendor Remittance Advice – This is the next payment number. Each ACH payment will be prefaced with the letter “E” and incremented by 1 each time a remittance advice form is printed.
• Allow Partial Allocation of Payment Amount – Enable this checkbox to allow for a vendor payment to distribute part of the payment electronically and the remainder via paper check. Clear this checkbox if you do not want to allow for a paper check to be generated.
• Reset Pre-Note When Renumbering the Vendor – Enable this checkbox to turn off the Approved status of the vendor pre-note, forcing a new pre-note to be generated for the vendor when the Vendor Number changes.
• Years to Retain Electronic Payment History – Specify 2-99 years to retain vendor electronic payment history (2 only retains the current year and prior year’s information).
• ACH Electronic Payments Folder – Specify the folder to which ACH transmittal files are to be saved. If this field is left blank, files will be saved in ..MAS90MAS_xxxAPxxx, where xxx represents the company code (NOTE – the users who will be generating ACH files must have FULL CONTROL over the folder in which the ACH files will go).

Configuring you bank account(s) and vendors: 

• Accounts Payable > Setup > ACH Maintenance.

• Make sure the Bank Account number is specified (and not masked. Check Role Maintenance for all users who need to generate ACH files and ensure those roles have AP Security Options to “Allow Viewing, Printing, and Editing of Highly Sensitive ACH Information” and GL Security Options to “Allow Viewing, Printing and Editing of Highly Sensitive Personally Identifiable Information” enabled).
• Account type – Checking or Savings.
• Pre-Note Approved checkbox – Enable.
• Immediate Destination and Origin – Typically your bank’s routing number.
• Originating DFI – Typically the first nine digits of your bank’s routing number.

The following refers to typical settings but defer to your bank for more specific settings.

• Accounts Payable > Setup > ACH Maintenance.

• Identify the bank code all the settings for that bank.

• Make sure that the Pre-Note Approved is checked.

Typical settings for the Records and Additional Tab are shown below, unless otherwise specified by your bank.

Configure vendors to be able to receive ACH payments: 

• Accounts Payable > Main > Vendor Maintenance.

• There are two pieces of information that will need to be specified.
  • Electronic Payment – Enable this checkbox to allow further configuration for ACH payments.
  • Standard Entry Class – Only need to fill this in if this is different than the Standard Entry Class specified in ACH Maintenance (Tab #2).  Your vendor may request a particular type of Entry Class.
    • PPD – Prearranged payment and deposit.
    • CCD – Cash concentration or disbursement.
    • CTX – Corporate trade exchange.

• Bank Account No. – Specify Vendor’s bank account number(s) into which payment(s) will be distributed.
• Routing/Transit No. – Specify Vendor’s bank routing number.
• Bank Account Type – Specify Checking or Savings.
• Bank Description – Enter bank name or you could designate that bank account is checking or savings.
• Distribution Method
  • Percent of Net Amount or Percent of Gross Amount – Could be any percentage amount. If distributing to multiple accounts, the LAST account should reflect 100%, regardless of other percentages.
  • Fixed Amount – Enter as dollar amount.
• Percent/Amount – Based on Distribution Method.
• Pre-Note Sent.
  • No – ACH will not be processed for this Vendor, and this Vendor’s account can be selected to generate Pre-Notes.
  • Yes – ACH will not be processed for this Vendor, but this Vendor’s account is ready for ACH Approval.
  • Approved – ACH can now be processed for this Vendor.
• Pre-Note Date – When the Pre-Note was created.
• Deposited YTD – Cumulative total of dollars for current year paid via ACH.

You can manually set the Vendor Pre-Note Sent to Approved, but you won’t have a chance to generate a pre-note file for the bank to confirm not only the Vendor information but also your bank information.

• Accounts Payable > Pre-Note Printing > Pre-Note Selection Register

Note:This function looks at all the vendors and selects those for whom a bank account has been configured.  Once this register has run, any vendor bank accounts for which Pre-Note Sent was set to NO will transition to YES.

• Accounts Payable > Pre-Note Printing > Generate Pre-Note ACH File.

Note: Run this to create the file to be uploaded to your bank for configuring confirmation.

The ACH file will be stored in the location specified in Accounts Payable Options.

For more information or assistance with your Sage 100 software, please contact our Sage 100 support team at 260.423.2414.

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