How to Process ACH/EFT Transactions in Dynamics 365 Business Central

In this article, I will review how to process and set up ACH/EFT transactions, covering how to print remittance advice and generate EFT files in Dynamics 365 Business Central.

Table of Contents

How to Process ACH/EFT Transactions

1. Apply the Transaction Against the Vendor Invoice

The first step will be to specify your payment transaction and apply it against the vendor invoice.

Once that has been done, select the “Recipient Bank Account” and “Bank Payment Type” for the entry.

Screenshot in the "Payment Journals" highlighting the "Recipient Bank Account" column as "BANK".

In the “Bank Payment Type” column, select “Electronic Payment.”

Screenshot in the "Payment Journals" highlighting "Bank Payment Type" field as "Electronic".

2. Exporting Remittance Advice

Once you’ve specified your payment entry, click “Bank” and “Export.”

Screenshot in "Payment Journals" highlighting "Bank" and "Export".

Ensure that the correct Bank Account No. is selected here, matching your entry.

Screenshot of the "Export Electronic Payments" window highlighting "Bank Account No." field as "Checking".

Press OK and Business Central will automatically download a remittance advice file in your system.

3. Generating ACH/EFT Files

After exporting remittance advice, you must generate your EFT or ACH file.

Navigate to “Actions,” “Functions,” and “Generate EFT File.”

Screenshot in "Payment Journals" highlighting the journey from "Actions", "Functions", and "Generate EFT File".

Click “Generate EFT File” and press OK.

Screenshot of Generate EFT Files window highlighitng "Generate EFT Files" and the row included.

The system will now generate an EFT file. Make sure to open the generated file in Notepad.

4. Sending Remittance Advice Via Email (Optional)

To send the remittance advice in an email, navigate to “Related,” “Payments,” and “Send Remittance Advice”.

Screenshot of "Payment Journals" highlighting the journey from "Related", "Payments", to "Send Remittance Advice".

Once you’ve clicked “Send Remittance Advice”, Business Central will direct you to a “Send Document to” screen:

Screenshot of the "Send Document to" window.

Press OK and send remittance advice accordingly to your vendors.

Pro tip: Adjust your email body when sending remittance advice to help streamline your business processes.

5. Posting EFT Transaction

Once all above steps are completed, we must preview our posting (to make sure GL entries are correct) and then post the entry.

Screenshot in "Payment Journals" highlighting "Home" and "Post".

How to Set Up ACH/EFT

One thing to note is that, before processing any ACH/EFT transactions, you must make sure the EFT setup is complete in Business Central.

EFT setup is comprised of four main windows:

  1. Bank Account Card (this should be properly set up in Business Central)
  2. Data Exchange Definition (here you have to specify the details for your generated EFT file)
  3. Company Information page
  4. Vendor Bank Account

Setting up EFTs can be a daunting and time-consuming task, especially for regular end users. Therefore, it’s often wise to reach out to a trusted Microsoft Dynamics partner for help. Please reach out to Encore to have ACH/EFT properly set up in your Business Central companies.

Once ACH/EFT is properly set up in Business Central, (this also includes making sure your printed remittance advice report has the correct format) then your ACH/EFT transactions will flow smoothly.

Tips & Tricks

Watch this short video that provides some valuable tips and tricks to best manage ACH transactions in Business Central along with how to address common problems and error messages within the system:

Learn more about useful payments processing functionality in Dynamics 365 Business Central:

For additional information and tailored advice in Dynamics 365 Business Central, please contact us.

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