Any time you set up a new bank account for direct deposit of employee paychecks, you must configure the options on the Financials Main > Setup > ACH/Direct Deposit page.
The very top option is labeled Generate ACH File Within a Single Transaction. This option may be set according to the district’s preference, as it has no effect on the TXT file that you will download for the bank. It only affects how the direct deposit transaction posts to the General Journal and appears during bank reconciliation.
Generally, most users prefer to enable this option in order to make bank reconciliation easier, but either option may be used.
Enabled
When Generate ACH File Within a Single Transaction is enabled, all employees in the same direct deposit file will be posted as single transaction in the General Journal. This also means that it will show as a single transaction during Bank Reconciliation, which matches how banks typically process the direct deposit file.
To clear the direct deposit, you click one lump sum total comprising all employees’ net pay.
Disabled
When Generate ACH File Within a Single Transaction is disabled, each employee’s direct deposit will be a separate journal transaction. This can have some advantage is troubleshooting rare questions, but also means that the every employee’s net pay appears as a separate line during bank reconciliation.
To clear the direct deposit during bank reconciliation, you must check each employee’s name separately and double-check that their amounts add up to the lump sum total on the bank statement.