Electronic Funds Transfer (EFT) offers a secure and convenient method of payment for companies that manage payments and transactions between multiple bank accounts. In this week’s blog, we highlight how companies can expect to benefit from utilizing EFT payment features in their day to day financial transactions.
Long Term Savings
In Microsoft Dynamics GP, users can post EFT payments by creating a file to upload to the bank. By doing so, companies receive direct deposits and can do away with additional transactional costs such as online processing fees and costs associated with postage and stamps for companies that mail physical cheques.
Companies sending cheques through the mail run the risk of forgery and for the cheque to be lost in the mail. Meanwhile, EFTs provide companies with enhanced security measures when processing their financial transactions. With built in security features, EFT ensures that transactions are done through a secure online network and funds directly deposited into the companies affiliated bank account.
Simple and Convenient
EFT’s functionalities offer a variety of methods that simplify financial transaction processes for companies. Users are able to set automated payment features, which is useful for things such as paying vendors by a particular date as well as for payroll functionalities. EFTs are also accessible, requiring only an internet connection in order to make any payment processes and for transferring funds across bank accounts.
Heimdall Sham, Digital Content Creator, WebSan Solutions Inc., a 2017 Microsoft Modern Marketing Innovation Award Winner
Setting up EFT (Electronic Funds Transfer) to make payments within Dynamics GP 2010 is a useful feature many clients aspire to take advantage of. As with any organization from a small to large scale, manually writing cheques to make vendor payments is both time consuming and not efficient. As such, Microsoft has made the EFT process easily accessible for setup and processing to save time and make payments easier. Setting up and generating EFT at a high level requires the following setup within GP:
- Specifying a file format for EFT Files (The file format to follow is provided to you by your financial institution and defines a layout of the file GP will produce to eventually upload to your online banking website
- Setting up vendor cards and chequebooks in GP (This is completed within the Purchasing Module in GP and involves specifying specific banking details to transfer EFT Payments to)
- Entering and posting payables transactions in GP representing payments to be made to specific vendors
- Conducting an “EFT Run” similar to a “Cheque Run” in GP. This involves specifying which transactions to include in the EFT payment
- Once completed, users can generate an EFT file for upload to their financial institution
Important Notes for EFT Setup:
- EFT setup in GP requires minimal interaction with your financial institution (Certain setup instructions are provided by them and require tests before activation)
- Multiple chequebooks can be setup for EFT processing within GP (Note: Financial institutions generally charge service fees based on the number of accounts with EFT processing enabled)
- GP 2010 allows users to print and keep records of all payment remittances
By: Praveen Parameshwaran, Application Specialist, WebSan Solutions Inc, a Microsoft Dynamics GP Partner and 2013 Canadian Channel Elite Awards Finalist