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ACH Software Overview

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ACH (Automated Clearing House) is a highly reliable and efficient nationwide batch-oriented electronic funds transfer system governed by the NACHA OPERATING RULES which provide for the interbank clearing of electronic payments for participating depository financial institutions. The Federal Reserve and Electronic Payments Network act as ACH Operators, central clearing facilities through which financial institutions transmit or receive ACH entries.

With the use of iACH, inFORM Decision’s ACH payment processing suite, you can save time and money by processing electronic transfers, instead of checks. The check spooled files already being created by your current Accounts Payable software on the ISeries are used as input for the iACH electronic batches. There is no custom coding required to interface with iACH.

Your vendors are notified either by fax (iFAX) or by email (iMAIL) that they have received or will be receiving payment based upon you AP schedule. The average cost of cutting a check is over two dollars, and the cost of sending an ACH transaction is fifteen cents or less. Not only can iACH pay for itself in a relatively short amount of time, your company could see considerable savings improving it’s overall bottom line.

IACH                ACH ePayment Solutions  5.05  12.15.08                     
                                                             System:   S10AE7BC 
   ACH ePayment Applications                                                    
      1. Work with ACH Spool Capture Applications            WRKIACHSPL         
      2. Work with ACH Control File Records                  WRKACHAPP          
      3. Work with ACH Detail Transactions                   WRKACHTRN          
      4. Submit ACH File and Control File                    SBMACHFILE         
   ACH ePayment Configure Secure FTP                                            
     10. Send using SFTP                                     SBMACHSFTP         
     11. Schedule SFTP transmission                          SCDACHSFTP         
   ACH Notification Maintenance                                                 
     20. Work ACH Notifications                              WRKACHNOTE         
     21. Work ACH Vendor Master                              WRKACHVEND         
     22. Submit ACH Notifications                            SBMACHNOTE         
     23. ACH System Environment                              ACHSYSENV          
 F1=Help   F3=Exit   F12=Cancel     

* Option 1 on the iACH menu allows you to map fields contained in your spooled files to the iACH fields, facilitating the creation of ACH batches. It also allows you to change already existing ACH/spooled file mapping.

* Option 2 on the iACH menu enables you to enter in all of your company’s bank details, data transmission protocol configuration and other credentials necessary to send a NACHA compliant file to your financial institution for electronic payment.

* Option 3 on the iACH menu enables you to add and/or modify transactions for specific ACH control records. Transactions can be changed from a released status to an open status, making them eligible for electronic file transmission.

* Option 4 on the iACH menu actually creates the ACH Control and detail files. It allows for the creation of these files based upon ACH Control Record (or your company’s bank account details etc defined in Work with ACH Control File Records) and an ACH transaction date range.

* Option 10 on the iACH menu will send the ACH files created, based upon the ACH Control Record specified, to your company’s financial institution, using SFTP. No need to worry about your sensitive data. SFTP, or secure FTP, is a program that uses SSH to transfer files. Unlike standard FTP, it encrypts both commands and data, preventing passwords and sensitive information from being transmitted in the clear over the network.

* Option 11 on the iACH menu lets you schedule the transmission of your ACH files based upon ACH Control Record.

* Option 20 on the iACH menu allows you to create your own fax and email templates. These templates are used when sending your vendors ACH Notification and Pre-notifications. The actual data elements from your ACH reserved fields such as Vendor name, invoice number and invoice amount among others, to be automatically integrated into the template to communicate specific details of the ACH transactions.

* Option 21 on the iACH menu allows you to add or maintain vendors and associate them with an ACH Control Records. Here you will define vendor specific information such as bank account number, account type, ACH Notification and Pre-Notification preferences as well as email and/or a fax number to send the notifications.

* Option 22 on the iACH menu will send your vendors ACH Notification and/or Pre-Notifications according to which ACH Control Record and ACH processing transaction dates contained within the date range specified.

* Option 23 on the iACH menu allows you to specify important elements of your ACH system. It allows you to specify where the ACH objects and data are found. It also allows you to specify whether to enable fax and or email ACH Notification and Pre-Notifications, Email client type, default sender address, default subject line and fax client type.

The table below outlines the configuration and production steps necessary for the initial setup and day to day operations.

Task Menu Description Item Detailed Description Frequency
1 Create ACH Control Record Item 2 NACHA constants, transmission details, transaction types One Time Setup
2 Create Test ACH Spooled File Customer Supplied Used as input into the ACH repository One Time Setup
3 Compose Pre-notifications / Notification Message templates Item 20 This will create the message body used to notify vendors of pending and executed financial transactions One Time Setup
4 Configure Transmission for FAX/email Item 23 Used to configure One Time Setup
5 Create Test Vendor Records Item 21 Identify Vendors wishing to participate in ACH, and assign previously defined Notification, Pre-notification messages Set Up as Vendors Participate
6 Create a Spool Capture application Item 1 Used to map the data from your company's spooled file to the ACH repository. One Time Setup
7 Merge a Spool Capture application with transaction spooled file. Item 1 Used to capture the data from your company's spooled file to the ACH repository On production schedule
8 Work with ACH Detail Transactions Item 3 Used to Release those items in the ACH repository for inclusion within an ACH file. On production schedule
9 Submit ACH Notifications Item 22 Send a Pre-Notification of transactions to vendors from prior step On production schedule
10 Submit ACH File and Control File Item 4 Creates the actual ACH Control and Detail Files On production schedule
11 Send Using SFTP Item 10 Sends Detail, and if necessary the control file On production schedule
12 Submit ACH Notification Item 22 Send a Notification of transaction to vendors of prior step On production schedule

pub/ach_software_overview.txt · Last modified: 2022/06/25 17:02 by