Set up bank accounts for vendors

  • 6 minutes

To enable electronic payments for vendors, you'll need to set up the bank information on the vendor page. The purpose of setting up vendor bank accounts is to set up vendor payment files that you can use for transactions, such as direct credits, in the system.

To set up vendor bank information, go to Accounts payable > Vendors > All vendors. On the Action Pane, under the Vendor menu, select the Bank accounts button in the Set up section.

Screenshot of the All vendors page with the Set up section and the Bank accounts button.

The Vendor bank accounts page will open, where you can create bank accounts for the vendor. The vendor bank accounts page has five FastTabs with various information related to the bank and the account: General, Setup, Prenotes, Address, and Contact information.

Screenshot of the Vendor bank accounts page with the five FastTab options.

General

The General FastTab captures information that's related to bank groups, which contain general information about the banks in a group. The following list describes important available options.

  • You can enter the Routing number, which is a nine-digit code that identifies the bank. A Routing number type, which has two characters, is also available.
  • You can also add the SWIFT code that's required during overseas bank transactions.
  • You have options to enter the international bank account number (IBAN), which is a standard international numbering system that identifies an overseas bank account.
  • You can define the Status of the bank account as Active or Inactive by updating the Active date and/or Expiration date.

Screenshot of the available options on the General FastTab.

Setup

In the Setup FastTab, you can enter some values that are required for various configurations. The following list describes the important available options.

  • You can enter Text code to specify text on the bank statement of the recipient.
  • In the Message to bank field, you can enter the message to be sent to the bank together with the payment.
  • In the Exchange reference field, you can enter the reference number of any forward-term or fixed-term rate of exchange.
  • The Cross rate field allows you to enter the negotiated exchange rate for the customer.
  • You can enter the default currency in the Currency field to indicate in which currency the bank performs transactions.

Screenshot of the Setup FastTab with available options.

Prenotes

To enable prenotes for your organization’s bank account, go to Cash and bank management > Bank accounts and then open the Bank accounts page. The following list describes important available options.

  • In the Payment management FastTab, you can change the value of the Prenote required toggle to Yes. Also, you can enter a value in the Prenote response days field.
  • Go to Accounts receivable > Periodic tasks and open Create prenotes.
  • In the Create prenote dialog, enter the Bank name, which is enabled for prenote. Enter other values that you need, such as File type, Account type, Account, and Effective date, and then select the OK button. Prenotes are created in the Prenotes FastTab of the vendor bank account. They will have a status of Pending until your organization’s bank approves them.

Screenshot of the Create prenotes page and the available options.

Address

In the Address FastTab, select the New button to add the address. The system will take you to the New address dialog. You'll need to add the Name or Description of the bank along with the Country/region and Street. The Zip/postal code information is integrated with the global address book. After you've selected Zip/postal code, other address fields will populate automatically.

Contact information

On the Contact information FastTab, you can enter the contact person in the bank who handles the current customer.