This chapter contains the following topics:
Technology has increasingly facilitated the ability of criminals to create counterfeit checks and false identification that can be used to engage in fraudulent check activities. As a result, companies must adopt practices to protect against check fraud. Positive pay can provide this protection for companies by enabling them to create a file of check information that their banking institutions can use when determining whether to issue payment for checks.
When you use positive pay, you create a file for your bank that includes information for each check that you printed during the day, such as check number, date, amount, and account number. The bank compares the information on the checks that they receive with the information in this file, and if the information for any of the checks does not match the file, the system does not pay the checks.
You run the Generate Positive Pay Text File program (R04586) to create the text file that you send to the bank. After you run this program, you use the Text File Processor program (P007101) to copy the text file to a specified location on your PC. After the text file has been copied to your PC, you can save it in the format required by the bank.
Before you complete the tasks in this section:
Verify that you have updated all payment groups.
Verify that you have entered all manual payments.
Verify that you have voided all necessary payments.
Verify that you have entered a bank account number and a transit number for each bank account for which to use positive pay.
This section provides an overview of generating the positive pay text file and discusses how to:
Run the Generate Positive Pay Text File program.
Set processing options for Generate Positive Pay Text File (R04586).
At the end of each day, run the Generate Positive Pay Text File program to create the positive pay text file to submit to your bank. When you run this program, the system selects payment records from the Accounts Payable - Matching Document table (F0413) and populates the Text Processor Header table (F007101) and the Text Processor Detail table (F007111) with information from these payment records.
When selecting records from the F0413 table, the system selects only records that meet the following criteria:
The payment date is before or equal to the date specified for the Through Date processing option for the Generate Positive Pay Text File program.
The value in the Positive Pay Flag field (GFL7) is blank (for payments that have not been voided).
The system includes the payment in the text file and updates the Positive Pay Flag field to a value of 1. The payment is not included the next time you run the program.
The value in the Positive Pay Flag field is either 1 or blank (for payments that have been voided).
A value of 1 in the Positive Pay Flag field of a voided payment indicates that the payment was voided after being included in a positive pay text file.
A blank value in the Positive Pay Flag field of a voided payment indicates that the payment was voided before ever being included in a positive pay text file.
The system includes the payment in the text file as a void and updates the Positive Pay Flag field to a value of 2. The payment is not included the next time you run the program.
The system creates one header record in the F007101 table for each bank's positive-pay text file and includes the following information:
Record type code
This code indicates whether the record is a header, detail, or trailer record. A value of 1 indicates that the record is a header record, a value of 2 indicates that it is a detail record, and a value of 3 indicates that it is a trailer record.
Bank transit/routing number
Company name
The system uses the value specified in the Company Name processing option for the Generate Positive Pay Text File program.
Creation date
Creation time
The system creates one detail record in the F007111 table for each payment in a positive pay text file and includes the following information for each payment:
Record type code
Bank account number
Check number
Payee name
The system uses the value specified for the Payee Name processing option for the Generate Positive Pay Text File program.
Check amount
Currency code
Check date
Void date
Status
The system also prints a report listing the information that was created in the F007101 and F007111 tables. Because this report contains headings for each column on the report, you can use it as a key when reviewing the data in the positive pay text file.
After running the Generate Positive Pay Text File program, use the Text File Processor program to copy your text file to a specified location on your PC so that you can save the text file in the format required by the bank and then submit the file to the bank.
Select Automatic Payment Processing (G0413), Generate Positive Pay Text File.
Select Manual Payment Processing (G0412), Generate Positive Pay Text File.
Processing options enable you to specify the default processing for programs and reports.
Specify the through date for positive pay processing. The system processes all payments dated through this date that have not been previously included in a positive pay file. If you leave this processing option blank, the system uses the current date.
Specify the name that is used as the company name in the positive pay text file. Values are:
Blank: Use the name for the company specified in the Company Constants table (F0010).
1: Use the value specified in the Alpha Name field in the address book record for the company.
2: Use the value specified in the Mailing Name field in the address book record for the company.
Specify the name that is used as the payee name in the positive pay text file. Values are:
Blank: Use the value specified in the Alpha Name field in the address book record for the payee.
1: Use the value specified in the Mailing Name field in the address book record for the payee.
This section provides an overview of copying positive pay text files.
After you run the Generate Positive Pay Text File program (R04586) to create your text file, you copy the text file to a specified location on your PC. When copying the text file, you must specify a file name and path and whether you want the system to append the text file to an existing one or to replace it.
After the text file has been copied to your PC, you can save it in the format that the bank requires and then transmit the text file to the bank.
Access the Text File Processor program from the Automatic Payments Processing (G0413) menu or the Manual Payments Processing (G0412) menu.