ACH Payment Processing - Overview

ACH Payment Processing - Overview

A) Form is available on the SCD web site (http://scd.das.state.or.us/scd.htm) B) Competed forms are to be sent to the ACH Coordinator at SFMS

C) Form will be retained for 2 years following revocation or termination D) Bank representative’s signature is required

E) Signature of both account holders is required on joint accounts

F) USERID (7-8 char) for access to remittance advice web site is optional

G) Email address, if provided, will be used for notices about payments and returned payments

II) Vendor profiles

A) ACH data fields have been added to the Vendor Profile screens (51 and 52) i) Routing number - 8 characters + check digit

ii) Account number - up to 17 characters iii) Acct Type – Checking ‘22’ or Savings ‘32’

iv) NACHA Format (CCD+ for commercial accounts; PPD+ for personal accounts) B) Other ACH related fields on the Vendor Profile

i) Email address (optional); agency staff can view this but not edit this field

ii) New PDTs: D and DA for ACH combine transactions like M and MA and R and RA

iii) PNI – Prenote indicator: shows as ‘Y’ when bank data initially entered. Changes to’ N’ when prenote has been sent. Waiting period – 9 banking days.

iv) Dir Dep Date (Direct Deposit Date) – Earliest date for processing ACH payments C) Other

i) Entry on the 51 screen in mail code 000 has been blocked (must enter data on 52 screen)

ii) If you modify an existing mail code and save the changes to make a new mail code, the ACH data on the initial mail code is not moved to the new mail code.

iii) ACH related data visible to Agency users (1) Dir Dep Date

(2) PNI (3) PDT

(4) Email address

iv) BU/WH (backup withholding) and ACH processing are not compatible v) Credit memos work in ACH processing the same as in warrant processing D) PDT Priority for Payment Processing

PDT used for payment processing will defaults from vendor profile if the PDT on both the batch header and the transaction screen are left blank.

(1) PDT on the batch transaction - over-rides both the header and vendor profile (2) PDT on the batch header – over-rides vendor profile

(3) PDT on the vendor profile – is only used if header and transaction PDTs are left blank

E) Payment combining

i) When payments are combined for ACH processing the will be listed line by line on the web site with no combining.

III) Timing of Settlement

A) The 505 screen’s DUE DATE is the day the nightly batch process is run. The next banking day is day one for determining the settlement day. Payment will be posted to the receiver’s bank account on the morning of the third banking day.

i) During nightly batch processing an email notice of the payment will be sent to the vendor’s email account if one exists on the vendor’s mail code referenced in the transaction.

B) First banking day – Day 1

i) The payment order file is sent to Oregon State Treasury. (NACHA format) ii) Treasury edits the NACHA file and notifies SFMS by 11:00 AM if there are any

problems. SFMS Operations will coordinate problem solving. iii) Treasury sends the NACHA file to US BANK.

iv) US Bank sends the NACHA file to the ACH Operator at the Fed Reserve Bank in San Francisco

C) Next banking day – Day 2 – ACH operator sends payment order to ‘receiving bank’. Receiving Bank verifies account data.

D) Settlement Day – Day 3 – receiving bank posts payment in vendor’s account early in the morning. (Not the day before; not the day after).

IV) Returned Payments (RET) and Notice of Change (NOC)

A) As a payment order data file (NACHA file) passes through the ACH network it is checked for errors

i) By Oregon State Treasury ii) By US Bank

iii) By the ACH operator iv) By the receiving bank

B) If an error is found at any point, the payment order will be returned to Treasury. C) SFMS receives notice of returned files at 9:30 AM. These notices are printed at SFMS

Operation’s office as DAFR5061 and DAFR5062.

i) ACH Coordinator will notify Agency of a returned payment by calling the contact on the Agency’s D02 screen. (Other arrangements can be made; contact the ACH

coordinator). Agency will need to verify the payment, reenter the transactions, and reissue payment as a warrant.

D) Nightly batch processing will perform the following actions upon receipt of a returned payment:

(1) Change vendor profile’s PDT to “MA”

(2) Cancel payment. (Change status from ‘P’ to ‘C’) (3) Reverse the original redemption transaction

(4) Advise Treasury to transfer funds from the ACH clearing account back to agency’s receipted account.

(5) Print the DAFR 3451 ‘Before’ and ‘After’ vendor profile update report (6) Send an email to vendor about the return and reason; send copy to the ACH

Coordinator

(7) Send a record of the reversing entry to remittance web site

E) Vendor must (ordinarily) complete a new authorization form to reestablish the ACH service

V) ACH Clearing Account

A) Coordinates movement of funds from agency receipted accounts to US BANK B) Clearing account for funds in the settlement waiting period (3 days).

C) No loss of interest to agency funds VI) Informational web site

A) Information for Travelers and Vendors B) Scope of information available

i) Is Direct Deposit for You?

ii) EFT\Direct Deposit Authorization Form Instructions iii) Frequently Asked Questions (FAQs)

iv) Forms and Brochures v) Glossary of Terms

vi) Payment Information Center VII) SFMS Reports

A) New Reports (DAFR…)

i) 3251 - DIRECT DEPOSIT CANCELLATIONS

ii) 3411 - EMAILS SENT FOR ACH PAYMENTS and RETURNS iii) 3451 - ACH RETURN ENTRY VENDOR PROFILE UPDATE

iv) 3452 - ACH RETURN ENTRY VENDOR PROFILE UPDATE STATISTICS v) 3453 - ACH RETURN ENTRY VENDOR PROFILE UPDATE ERRORS vi) 3461 - PRE-NOTE PROCESSING

vii) 3471 - NACHA FILE DETAIL RECORDS WRITTEN viii) 3691 - DIRECT DEPOSIT PAYEES BY AGENCY

ix) 3805 - PAYMENT REDEMPTION LIST OF GOOD MANUAL ACH CLEARS x) 5061 - ACH RETURN ENTRY BATCH DETAIL REPORT

xi) B0411 - SFMS CLEARING ACCOUNT TRANSFERS xii) B0412 - SFMS CLEARING ACCOUNT TRANSFERS

xiii) B0413 - ACH CLEARING ACCOUNT TRANSFER CREATED VS. NACHA FILE WRITTEN

xiv) 3421 – SFMS ACH TRANSFERS EXTRACT

xv) 3421 – SFMS CLEARING ACCOUNT TRANSFERS xvi) ACHC - SFMS CLEARING ACCOUNT TRANSFERS

VIII) Reconciliation

A) Like warrants outstanding B) Two column offset

C) Add a note on the reconciliation that explains the offset for the “ACH clears”

STAN will not be available to agencies using SFMS in Detail after March 1, 2003

Send questions and comments to ‘ACH.Coordinator@das.state.or.us’

Part II – ACH Payment Processing – R-STARS Screens

Batch Header Entry Screen

Leave the PDT blank so the default value on the vendor profile (DA or MA, etc.) will be used. S500 VER 2.0 STATE OF OREGON 01/08/03 03:14 PM

LINK TO: BATCH HEADER ENTRY ACPT

BATCH AGENCY: 107 (SIGN ON AGENCY)

BATCH DATE: (MMDDYY, DEFAULTS TO TODAYS DATE) BATCH TYPE: 4

BATCH NUMBER: 319

BATCH COUNT: BATCH AMOUNT:

BATCH EDIT MODE: 2 (0=NO EDIT/POST, 1=EDIT, 2=EDIT/POST)

PAYMENT DIST TYPE: (MUST BE IN D50 PDT PROFILE) DISB METH IND: (H, M, R, E OR SPACE)

EFFECTIVE DATE: (MMDDYY, DEFAULTS TO TODAYS DATE) FAST ENTRY: (M/S/I/P/ )

USER ID: DASBD19 WHITTAKER, JEFF USER CLASS: 01

ACTION CODE AGENCY: ACTION CODE:

Continue…Voucher Payable Screen

Leave the PDT blank so the default value on the vendor profile (DA or MA, etc.) will be used. S505 VER 2.0 STATE OF OREGON 01/08/03 03:16 PM

LINK TO: PRE-ENC/ENC/EXPEND TRANSACTION ENTRY NOTE: ACPT

BATCH: AGENCY 107 DATE 010803 TYPE 4 NO 319 SEQ NO 00001 MODE EDIT AND POST DOC DATE: 010503 EFF DATE: 010803 DUE DATE: 010803 SERV DATE:

CUR DOC/SFX: vp REF DOC/SFX: MOD: AGENCY: 107 TRANS CODE: 222

INDEX:

PCA: 25000 AY: 03 COMP/AGY OBJ: 4605

AMOUNT: 123. RVS: DISC: 1099: FO: PDT: DOC COUNT: DOC AMT: 123. DOC AGY: 107 CI: PROP #:

INV NO: 2003-00001 DT: DESC: 40 lb cheese VEND/MC: 1991231204 001 NM:

CONT NO: ADDR 1: WARR NO: ADDR 2: APPN NO: ADDR 3: FUND: ADDR 4:

GL AC/AGY: CITY: ST: ZIP: GRANT NO/PH: SUB GRANTEE: PROJ NO/PH:

MPCD: AGY CD-1: 2: 3: DI: RTI:

F1-HELP F3-RTI F4-EDIT F6-BALANCING F7-DETAILS F9-INTERRUPT F10-SAVE F11-SAVE/CLEAR F12-HEADERS CLEAR-EXIT

If the PDT of ‘DA’ is entered for a vendor who is not set up for direct deposit, an error will be displayed on the edit line. The PDT field must be changed to a warrant processing code (e.g. MA, RA, etc.)…

S505 VER 2.0 STATE OF OREGON 01/08/03 03:21 PM

LINK TO: PRE-ENC/ENC/EXPEND TRANSACTION ENTRY NOTE: N ACPT

BATCH: AGENCY 107 DATE 010803 TYPE 4 NO 319 SEQ NO 00001 MODE EDIT AND POST DOC DATE: 010503 EFF DATE: 010803 DUE DATE: 010803 SERV DATE:

CUR DOC/SFX: VP000566 001 REF DOC/SFX: MOD: AGENCY: 107 TRANS CODE: 222

INDEX:

PCA: 25000 AY: 03 COMP/AGY OBJ: 4351 4605

AMOUNT: 00000000123.00 RVS: DISC: 1099: 7 FO: PDT:

DA

DOC COUNT: 00001 DOC AMT: 0000000123.00 DOC AGY: 107 CI: PROP #: INV NO: 2003-00001 DT: DESC: 40 LB CHEESE

VEND/MC: 1991231204 001 NM: GUDA WORKERBY CONT NO: ADDR 1: 125 CHEESE STREET WARR NO: ADDR 2:

FUND: 4190 ADDR 4:

GL AC/AGY: CITY: DAIRYTOWN ST: WI ZIP: 43567 GRANT NO/PH: SUB GRANTEE: PROJ NO/PH:

MPCD: AGY CD-1: 2: 3: 15000 DI: RTI:

E12 EFT PDT NOT ALLOWED

AGENCY VIEW of vendor profile (bank data hidden) .

S051 VER 2.0 STATE OF OREGON 01/08/03 03:13 PM

LINK TO: VENDOR MAIL CODE PROFILE ACPT

VENDOR NO: 1991231204 GUDA WORKERBY MAIL CODE: 001 NAME: GUDA WORKERBY SEARCH NAMES: GUDA WORKERBY

ADDRESS: 125 CHEESE STREET

CITY: DAIRYTOWN ST: WI ZIP: 43567 COUNTRY: REGION: TAX RATE:

UPDATE REASON: ADD OWNERSHIP CODE: I LICENSE: VENDOR CONTACT: GUDA WORKERBY FAX: TELEPHONE: 503 555 1212 EXT: ALT VEND NAME: I LTR DATE:

PDT: DA EMAIL: MARY.ADELL@STATE.OR.US PNI: Y

AGY: 107 CONTACT: JEFF WHITTAKER PHONE: 503 373 1044 X248

DIR DEP DATE:

03172003

HOLD REASON CODE: STATUS CODE: A EFF START DATE: 07242002 EFF END DATE: LAST PROC DATE: 10082002

Z07 NEXT RECORD SUCCESSFULLY READ

ACH Coordinator view (update/view bank data) .

S052 VER 2.0 STATE OF OREGON 01/09/03 08:18 AM

LINK TO: SYSTEMWIDE VENDOR PROFILE ACPT

VENDOR NO: 1991231201 NAME CONTROL: REDD UPDATE MAIL CODE: Y VENDOR NAME: REDDY WORKERBY

SEARCH NAMES: REDDY WORKERBY

ALT VENDOR/FID: 1099 IND: Y FEI/SSN IND: S REASON CODE: CHG VENDOR TYPE: 1 OWNRSHP CD: E 2ND TIN NTC: VN STATUS:

ADDRESS: 123 E. SOUTH ST

CITY: ANYTOWN ST: MO ZIP: 45678 CNTRY:

VENDOR CONTACT: TAX OFFSET EXMPT: N TELEPHONE: EXT: FAX: HOLD RSN: PDT: DA EMAIL: JEFF.WHITTAKER@DAS.STATE.OR.US PNI: N AGY: 107 CONTACT: JEFF WHITTAKER PHONE: 503 373 1044 X248 DIR DEP DATE: 11102002

ABA NUMBER: 345345349 ACCT NO/TYPE: 33330555500120100 32 FORMAT: PPD+

W9 REQUEST DATE: BU/WH EFF DATE: STATUS CODE: A EFF START DATE: 07262002 EFF END DATE: LAST PROC DATE: 01092003

Z02 RECORD SUCCESSFULLY CHANGED