Positive Pay Integration
If you use a third party or custom positive pay program to notify your bank of negotiable and non-negotiable checks, you can submit the Positive Pay Report in Payables to create a flat file that contains information for checks you specify. You can then use your positive pay program to format the payment data in the format required by your bank and transmit the data electronically to your bank. You set up your positive pay program to periodically dial up your bank and download a list of exceptions. An exception is a check that is listed on the file you submitted to your bank that is presented to the bank for cashing twice, or is not on the list, or has an amount different from the amount listed. If you do not approve or reject an exception, the bank will pay the check as presented.
Setting Up Your System for Positive Pay
To set up Payables for integration with Positive Pay:
1. In your positive pay program, specify the path for the output of Payables flat file. The file will be in your ap_out directory.
2. Optionally prevent certain users from creating positive pay files from the Payment Batches Actions window by hiding the Create Positive Pay check box for their responsibility. See: Function Security in Payables.
3. Set your third party or custom positive pay program to automatically dial the bank at regular intervals and download exceptions.
4. For each bank account you will include on positive pay files, confirm that the Bank Account number and Branch number in the Banks window is correct. The positive pay file must contain accurate bank information. For U.S. based banks, enter the 9-digit ABA transit routing code in the Bank Branch Number field.
Creating Positive Pay Reports in Payables
You can create a Positive Pay Report in the Payment Batches Action window for all checks in a single payment batch. Alternatively, you can create a positive pay file in the Submit Request window for payment batch checks, Quick checks, Manual checks, and void payments, based on parameters you specify. Payables puts the output file in your apout directory and names it as it would any other concurrent request; Payables concatenates your userid and the concurrent request number. You can, of course, rename the file.
In the Banks window, enter the Branch Number and Bank Account Number for the bank you are using for the payment batch. The positive pay file must contain accurate bank information. For U.S. based banks, enter the 9-digit ABA transit routing code in the Bank Branch Number field.
To create a positive pay report from the Payment Batches window.
1. Create a payment batch.
2. Confirm the payment batch.
3. In the Payment Batch Actions window, enable the Create Positive Pay File check box. Choose OK. Payables creates a file that includes all checks in the payment batch, including negotiable, and non-negotiable (setup, overflow, and spoiled).
To create a Positive Pay Report from the Submit Request window: