Hi Fellow Dynamics GP Users:
I am somewhat puzzled about the purpose and it's much touted benefits of this application. I am somehow not seeing the advantages of using this component of the eBanking Suite, and would very much like to know exactly what those useful features are:
Here's what I understand about how it works:
1. Complete the EFT Checkbook for Receivables;
2. Complete the Customer Setup for EFT;
3. Create the Invoices and Post;
4. Create a Cash Receipt Batch for EFT and post; This will Debit the Bank and Credit the Receivables.
5.Generate the EFT File and Send to the Bank for Collection***
- The Bank will collect the specified amounts from the customers and deposit them into the company's Bank Account. The subsequent Bank Statement will list the deposits, to be reconciled against the EFT Payments already reflected in the Company's Bank Account.
Therefore, other than outsourcing the Collections to the Bank, are there any other significant advantages, that I am not seeing?...From my point of view, it seems far more logical and even more convenient to send out the invoices to the customers, and be notified by the Bank of the payments received and deposited into the company's account. It would then be a simple matter of doing a Cash Receipt to apply the EFT payment.
I just cannot seem to reconcile the idea of Receiving and updating my Bank Account, just for the sake of Generating an EFT file to send to the Bank.
I would greatly appreciate your help in clarifying what appears to be my lack of understanding of this application.
Thnaks & Regards,
The benefit to EFT for Receivables is that the bank directly debits the payment from customer's bank accounts. You don't have to wait for the customer to make payments. It's not outsourcing collection to the bank in a traditional wait for the check sense. You get paid almost immediately. There is a significantly reduced risk of non-payment and if a payment fails you know right away.
Thank you Mark for the quick response, and I do appreciate it very much. However, if you could clarify a point of concern I still have, I'd be truly grateful:
In order to send the file to the Bank, I need to post the payments through Cash Receipts, even though I have not yet received the payments; It is somewhat contrary to my way of thinking. It is true that the Customers have enrolled themselves in this scheme, and have authorized the company, and therefore the bank, to automatically debit their account; It is also true that the timeliness and assurance of collecting those funds are advantageous to the company.
Would it not make greater sense however, if we could generate the EFT File to the bank, based on the posted EFT batch of Invoices, and applying the Cash Receipts AFTER the Bank confirms the receipt and deposit of funds into the company's account? To me, the current practice is somewhat akin to 'putting the cart before the horse' analogy;
I am an avid follower of yours and value your great insights and input, but the logic still eludes me, and would greatly appreciate your thoughts on it. I do understand, you are describing the process, as it is currently designed, and my question still is, 'Is it the best way to handle this feature?'
If there are others who are troubled, as I am, I would appreciate your comments!
Thanks & Regards,
I have a customer receiving the message "Not eligible for EFT" on the Receivables EFT preview report. Any idea how or why this would happen?