Understanding How to Activate a Bank Account as a Vendor Record Type

Activate a bank account as a vendor record type when:

• Suppliers have the same user-defined record type assigned to multiple bank accounts.

• A payment instrument and GL bank account relationship are not established for the user-defined record type.

You can set up multiple bank accounts for a supplier and assign them all the same user-defined record type. For example, you can set up five different bank accounts for a supplier and assign them all as record type Z.

If you assign the same user-defined record type to multiple bank accounts, you must manually activate the account to which you send your electronic payments. Otherwise, the program uses the first account that it finds that meets the default search criteria. For example, if you assign five bank accounts the record type Z and attempt to send an electronic payment, the system sends the electronic payment to the first Z record type account that it finds for the supplier. Rather than have the system perform this selection automatically, you can specify which account the system uses each time you run the bank tape process.

For example, you could select one of the five Z type accounts that you assigned, and activate it as a vendor (V) type account. The system then exchanges the record types of the Z type account that you selected and the V type account. After you activate a specific record type and make it a V record type, you run standard bank tape processing that uses a V record type for a supplier.

Also, you can activate any bank account as a draft (D) record type. The process is nearly identical to activating a vendor (V) record type.