Using EFT Processing in Sage 300 to create a Positive Pay file

What is Positive Pay?

Positive Pay is a process that you need to send an EFT File for the bank for the checks/cheques you have issued. Without the matching details between the physical check/cheque and the details loaded to the bank, the bank will not honour the check/cheque.

Watch the demonstration video:

WHEN TO SEND A POSITIVE PAY FILE?

The Positive Pay file can be generated from the Printed Check entries in the AP Posted Payments. The positive pay file should be generated and uploaded to the bank prior to the checks/cheques being posted out.

Tip: You can also use Positive Pay formats with EFT Payroll if paying employees by cheques.

EFT FILE FORMATS FOR POSITIVE PAY FILES

A Positive Pay Format is a file format for check payments where the bank requires a file that contains the check number, check date, amount, and vendor name.

For many Positive Pay Formats, you do not need to create EFT Vendor records as these details are not required by the bank. The only Positive Pay format that requires EFT vendor records is HSBC_ISO20022_PP

Setup

Configure the appropriate bank in EFT Banks to be linked to the positive pay EFT File Format.

If required in your format, create the EFT Vendor with the Positive Pay details required.

Creating a positive pay file

The best way to process payments if you have both checks and EFT, is to have separate payment batches for the two types of payments. This will give you a better audit trail for EFT Files -> the batch total will match the EFT File Created total which will match the total for the payments when you import the EFT File into the bank.

  • Use two different payment codes on the vendors, one for Check and one for EFT

  • Then filter by Payment Code in the A/P Create Payment Batch -> so your EFT payments are in a separate batch from your Checks

  • Print and post the AP payment batches

  • Create an EFT File for the Cheque Payment batch. Select the Positive Pay file type

  • Upload the EFT File to the bank.

Tips:

If you don't want users to select the file type when creating the EFT File, you can use a Clearing bank for the Positive Pay bank. Setup and Use EFT Clearing Bank