Setup and end to end usage of ACH for vendor payment in Microsoft Dynamics 365 Finance and Operations

Setup and end to end usage of ACH for vendor payment in Microsoft Dynamics 365 Finance and Operations

Automated Clearing House (ACH)  is a computer-based clearing and settlement facility established to process the exchange of electronic transactions between participating depository institutions.

Two important setup needed are:

1. Setup method of payment using type as  'Electronic payment'
2. 
3. Under file formats, for Export format field, select NACHA IAT (US).
4. Setup company statement name for the bank account which is enabled once you define the address in USA or Canada.
5. 
6. Provide bank account and routing number on vendor bank details
7. 
8. Setup bank and routing number on vendor
9. Assign default bank account on vendor
10. 
11. Make payment to vendor using a method of payment of type 'Electronic payment'
    1. Export file should be specified of type NACHA IAT
12. During vendor payment journal - function generate payment
13. 

1. 1. The ACH file gets generated along with other document viz. control report and payment advice 

e.g. Sample from Demo data

101 311003932 Operating2106082231A094101                       Main bank account - USA       

5220Operations      AX EFT DEPOSIT      Operating CCDPAYABLES  060821210608   1311003930000001

622123456780123456789        00001000001001           Demo                    0006870000000001

82200000010012345678000000000000000000100000Operating                          311003930000001

9000001000001000000010012345678000000000000000000100000