Electronic Banking

1. Electronic Banking Authored by Tami Johnson, Socius Regional Chapters

2. Objective To help you understand the capabilities of the Dynamics GP Electronic Banking modules, and how they can help to prevent fraud in your organization Level: Beginner

3. About Check Fraud • 73% of banks reported check fraud losses in 2010, totaling approx. $893 million (2011 ABA Deposit Account Fraud Survey) • Check fraud is the second most common scheme that institutions face, placing just behind payment card fraud and ahead of phishing (BankInfoSecurity, Faces of Fraud Survey, 2012)

4. About Check Fraud • “While the exciting and glamorous fraud topics today involve wire fraud, account takeovers, ID theft, and skimming, the results of the Association for Financial Professionals’ annual corporate fraud survey remind us that the most fraud vulnerable instrument available today is the paper check.” Richard Oliver, Atlanta Federal Reserve Bank, May 2012

5. Electronic Banking Components • EFT for Payables • EFT for Receivables • Electronic Reconcile • Safe Pay • Lockbox Processing

6. EFT for Payables • Pay Vendors electronically via ACH • Configurable formats • Pre-notes • E-mail Remittance

7. EFT for Payables Setup • Contact your bank • Checkbook configuration • Bank identification information • Prenote requirement • Upload method • File format • Contact your Vendors • Setup Checkbook • Configure Formats • Setup Vendors

8. EFT for Payables SetupCards >> Financial >> Checkbook >> EFT Bank Button Complete using the information provided by your bank.

9. EFT for Payables SetupCards >> Financial >> Checkbook >> EFT Bank Button >> Payables Options Use Check Numbers to generate a non-negotiable check. Use EFT Numbers togenerate a remittance.

10. EFT for Payables SetupCards >> Financial >> EFT File Format • Create the EFT file format based on the information provided by the bank. • US File Types: • NACHA PPD • NACHA PPD+ • NACHA CCD • NACHA CCD+ • IAT NACHA

11. EFT for Payables Setup The GP Letter Writing Assistant includes an out of the box letter for EFT Authorization. Generate the letter through Vendor Maintenance or SmartList.

12. EFT for Payables SetupCards >> Purchasing >> Vendor >> Address >> EFT Bank Complete using the information provided by your Vendor.

13. EFT for Payables SetupCards >> Purchasing >> Vendor >> E-mail Optional – Complete Vendor E-mail Options to e-mail remittance.

14. EFT for Payables SetupTools >> Routines >> Financial >> Generate EFT Prenotes If the bank requires prenotes, run the process once EFT Vendor information has been created. This process will need to be run as Vendors are added to the EFT process.

15. EFT for Payables Process EFT vs. Check is designated on the Batch.

16. EFT for Payables ProcessTransactions >> Purchasing >> Transaction Entry If the Remit-To ID chosen has an active EFT configuration, the invoice will be paid by EFT. If not, it will be paid by check.

17. EFT for Payables ProcessTransactions >> Purchasing >> Batches Payment Method: Check – Payments for invoices with Vendor Remit-To Addresses without an active EFT configuration.

18. EFT for Payables ProcessTransactions >> Purchasing >> Batches Payment Method: EFT – Payments for invoices with Vendor Remit-To Addresses with an active EFT configuration.

19. EFT for Payables Process Check payments and EFT payments will not be combined in the same check batch. You must process two separate batches.

20. EFT for Payables ProcessTransactions >> Purchasing >> Select Checks For EFT batches, the Print Checks button at the bottom of the Select Payables Checks window has been replaced with a process button.

21. EFT for Payables ProcessTransactions >> Purchasing >> Select Checks

22. EFT for Payables ProcessTransactions >> Purchasing >> Select Checks

23. EFT for Payables ProcessRemittance Example

24. EFT for Payables ProcessTransactions >> Purchasing >> Select Checks

25. EFT for Payables ProcessTransactions >> Purchasing >> Generate EFT

26. EFT for Payables ProcessTransactions >> Purchasing >> Generate EFT

27. EFT for Payables Process If you do not run the EFT communication type during the Generate EFT process, you must upload the file manually.

28. EFT for Payables ProcessSample Output File

29. EFT for Payables Process

30. EFT for Receivables • Generate customer payments electronically via ACH • Configurable formats • Pre-notes

31. EFT for Receivables Setup • Contact your bank • Checkbook configuration • Bank identification information • Prenote requirement • Upload method • File format • Contact your Customers • Setup Checkbook • Configure Formats • Setup Customers

32. EFT for Receivables SetupCards >> Financial >> Checkbook >> EFT Bank Button Complete using the information provided by your bank.

33. EFT for Receivables SetupCards >> Financial >> Checkbook >> EFT Bank Button >> Receivables Options

34. EFT for Receivables SetupCards >> Financial >> EFT File Format • Create the EFT file format based on the information provided by the bank. • US File Types: • NACHA PPD • NACHA PPD+ • NACHA CCD • NACHA CCD+ • IAT NACHA

35. EFT for Receivables SetupCards >> Sales >> Customer >> Address >> EFT Bank Complete using the information provided by your Customer.

36. EFT for Receivables SetupTools >> Routines >> Financial >> Generate EFT Prenotes If the bank requires prenotes, run the process once EFT Customer information has been created. This process will need to be run as Customers are added to the EFT process.

37. EFT for Receivables Process

38. EFT for Receivables ProcessTransactions >> Sales >> Cash Receipts Entry Checking the EFT box fills in the Check/Card Number field with the EFT number (if defined in setup), and adds EFT TRANSACTION to the Comment field.

39. EFT for Receivables ProcessTransactions >> Sales >> Generate EFT

40. EFT for Receivables ProcessTransactions >> Sales >> Generate EFT

41. EFT for Receivables Process If you do not run the EFT communication type during the Generate EFT process, you must upload the file manually.

42. EFT for Receivables ProcessSample Output File

43. EFT for Receivables Process

44. Electronic Reconcile Setup • Contact bank for reconciliation format • Configure format • Associate format with GP Bank ID

45. Electronic Reconcile SetupTools >> Routines >> Financial >> Electronic Reconcile >> Configurator Create the Electronic Reconcile file format based on the information provided by the bank. Choose Codes Entry to map specific Transaction Type Codes (from the bank) to specific General Ledger Accounts.

46. Electronic Reconcile SetupTools >> Routines >> Financial >> Electronic Reconcile >> Download Maintenance Associate the format with the bank and associated checkbooks.

47. Electronic Reconcile ProcessTools >> Routines >> Financial >> Electronic Reconcile >> Transaction Upload Download transactions directly from the bank or from a file that was downloaded manually (depending on configuration).

48. Electronic Reconcile ProcessTools >> Routines >> Financial >> Electronic Reconcile >> Transaction Upload A confirmation number is required and will be provided by the bank when the download is complete. A report will be generated that lists those transactions from the bank that could not be matched with a transaction in GP.

49. Electronic Reconcile ProcessTools >> Routines >> Financial >> Electronic Reconcile >> Transaction Upload Click the Reconcile button to open Bank Reconciliation and continue the Bank Rec process.

50. Electronic Reconcile ProcessMatching Logic