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Paying vendors by ACH

A school district may prefer to pay their accounts payable through an ACH file to the bank instead of sending a check. SchoolInsight Financials will generate an ACH file from “Payments” that you can submit to your bank to automatically process these accounts payable vendor payments.

Set up District ACH options
Set up Vendor ACH information
Generate ACH files

District ACH Options

The district’s bank account details are necessary to generate an ACH file for processing the Vendor payment.

To enter district ACH options:

  1. Go to Financials Main > Setup > ACH/Direct Deposit
  2. Edit
  3. Fill out the AP Options section, using details of the bank account (should mostly match your Payroll Options information if the money comes out of the same account)

Vendor ACH Information

In order for a vendor to receive money via an ACH payment, the vendor’s bank account details must be entered into SchoolInsight Financials.

To enter ACH bank details for a single vendor:

  1. Go to Financials Main > Accounts Payable > Vendors
  2. Search for the vendor
  3. Click Edit
  4. Under Settings, choose the Vendor Tax ID Type
    • Selecting EIN will produce a CCD record in the ACH file, used for corporate accounts.
    • Selecting SSN/TIN or leaving the field blank will produce a PPD record in the ACH file, used for consumer accounts.
  5. Enter ACH Settings Information
    • Name on Account
    • Account Type
    • Account Number
    • Routing Number
  6. Save

To mass enter ACH Data for Vendors:

  1. Go to Financials Main > Accounts Payable > Vendors
  2. Click the 3-dot menu in the upper-right corner
  3. Click Mass Enter ACH Data
  4. Enter the details for each vendor:
    • Tax ID Type
    • Name on Account
    • Account Type
    • Account Number
    • Routing Number
  5. Save Changes

Generate ACH files

Invoices that will be paid via ACH should be processed like any other invoice and marked with the status Ready for Payment. When you are ready to actually turn these invoices into payments, create the ACH file using options on the Payments page.

To generate an ACH file for immediate download:

  1. Go to Financials Main > Accounts Payable > Payments
  2. Mass Create Payments
  3. Enter the Date that the ACH payment should post (typically at least 1-2 days in the future)
  4. Choose the Payment Type “ACH”
  5. Select the Financial Institution Account
  6. Select Create and Download ACH File
  7. Check the invoices to include in the payment file
  8. Create
  9. Click here to download the ACH file
  10. Upload the file to bank

NOTE: Some banks may not accept “commingled” ACH files that contain both CCD and PPD records. If that is the case at your bank, please pay vendors with an EIN (CCD) and vendors with SSN/ITIN (PPD) in separate ACH files.