Creating a prenote file

Prenote (prenotification) is a process that creates a zero-dollar transaction/prenote transaction type file for the bank as a test that the vendor's and employee's EFT details are setup correctly. The prenote file can be generated in one of two ways, depending on how you control the process:

  • Control the process from the EFT Vendor(s) record - Method 1

  • Control the process from the EFT Bank record - Method 2

Refer to video presentation on Orchid website.

https://www.orchid.systems/resources/video/spotlight-creating-prenote-files-sage-intacct-eft-processing

 

WHEN TO SEND A PRENOTE FILE?

There are no exact rules for doing prenotes.

Since the prenote is a verification of banking details, most users would create a prenote file the first time you pay a vendor. If this is the only time you want to send a prenote file, we recommend Method 1 although you need to generate, delete & re-generate the EFT File for each new vendor.

Some users might want to generate a prenote file for each EFT File and then generate the file with the actual payment amount on a regular basis. If this is what you want to do, we recommend Method 2. With this method you only need to generate, download, hold, refresh after changing the EFT Bank Prenote flag to "N", and download the new EFT file.

Refer to Sage website:

https://www.sage.com/en-us/blog/glossary/what-is-a-prenote/

EFT FILE FORMATS FOR PRENOTES

There are different EFT File Formats for the various banks with the same functionality described below. In the examples below, we will use

  • NACHA

  • NACHA_PRENOTE

If there is no prenote format for your specific bank - send us the specification for the PreNote file from the bank, and we can include the format for you.

METHOD 1 - FROM THE EFT VENDOR RECORD

Step 1: Configure the appropriate bank in EFT Banks to be linked to NACHA and NACHA_PRENOTE. You will have two EFT Banks records for the appropriate bank account

Step 2: On the Orchid EFT Tab for the Vendor, select NACHA_PRENOTE as the EFT File Type and fill in the appropriate EFT Fields for the vendor (bank account number, bank branch number, account type)

Step 3: When you have a posted payment for this Vendor, Use EFT AP Payment Request to select the payment for the vendor and Generate an EFT File

Step 4: Use EFT File List to download the EFT File. This file will have zero for the payment amounts, and the account type will be set to prenote.

Step 5: Upload the EFT File to the bank, and when confirmed by the bank

  • Delete the EFT File in EFT File List

  • Amend the EFT Vendor details, change the NACHA_PRENOTE EFT File Type to NACHA

Step 6: Use EFT AP Payment Request to select the payment for the vendor and Generate EFT File, this time, the file created with NACHA file type will include the payment amount and transaction type.

METHOD 2 - FROM THE EFT BANK RECORD

  • Configure the appropriate bank in EFT Banks to be linked to NACHA You will have one record in EFT Banks for the appropriate bank account

  • On the Orchid EFT Tab for the Vendor, select NACHA as the EFT File Type and fill in the appropriate EFT Fields for the vendor (bank account number, bank branch number, account type: cheque or savings)

  • When you have a posted payment for this Vendor and want to create a PRENOTE file

Step 1: On EFT Banks, set the Prenote indicator to "Y". Save the EFT Bank Record

Step 2: Use EFT AP Payment Request to select the payment for the vendor and Generate an EFT File. Include any other vendor payments for which you want to generate a prenote for

Step 3: Use EFT File List to download the EFT File. This file will have zero for the payment amounts, and the account type will be set to prenote.

Step 4: Upload the EFT File to the bank, and when confirmed by the bank

Step 5: Hold the EFT File in EFT File List

Step 6: On EFT Banks, set the Prenote indicator to "N". Save the EFT Bank Record

Step 7: Refresh the EFT File in EFT File List and download and upload to the bank. This file will include the payment amounts and the account type.