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D365 Updates

Set Up Direct Deposit Payments For US Payroll In Dynamics 365 FO


By cheque or by electronic(Direct Deposit payments) payments, US Payroll in Dynamics 365 FO gives you the option to pay workers. To set up the Direct Deposit  NACHA feature for US Payroll, you need to make sure the setups are complete: Payroll Bank account, Payroll electronic payments – Method of Payment, Direct Deposit & account setup for Employees, Payroll journal in General ledger, Payment issuance for Electronic method of payment. Here is a reference for the required setups to get you going with Direct Deposit NACHA payments in US Payroll.

Create A New Bank Account

Cash & Bank management > Bank Accounts, click New and enter the Routing Number, Bank Account Number, company Statement Name, Company ID –  in “Additional identification” tab on the Bank account form.

direct deposit payments

New Bank Account

 

 

 

 

 

 

Set Up A Method Of Payment For Payroll Electronic Payments

Accounts Payable > Setup > Payment Setup > Methods of Payment – click New. Enter a Description and the Payment Status field, select Sent to avoid posting the payroll payment journal without first generating the payment. In the Period field, select Invoice. In the Grace period field, enter Zero. In the Payment type field, select Other. On the File Formats tab, click the Export format dropdown menu to select Payroll electronic NACHA PPD from the Export format list. Direct Deposit Payments (NACHA Payments) requires the export format Payroll electronic NACHA PPD for US Payroll, however, it is the same as the Standard NACHA – PPD format. If your company has customizations on the Standard NACHA – PPD format, the same considerations will need to be made for the Payroll electronic NACHA PPD export format.

Electronic Payments

Payment For Payroll Electronic Payments

 

 

 

 

 

Set Up Employees To Receive Direct Deposit Payments

Worker bank accounts and bank account disbursements need to be set up for each worker.

1. Add Bank Accounts For Each Worker

Select a worker and on the Action Pane, click Personal information > Bank accounts. Open the Worker bank account form and click +New to create a new line. Complete the Account identification, Routing number, Bank account number, and Bank account type fields.

Bank Accounts

Bank Accounts For Each Worker

 

 

 

 

 

2.Setup Bank Account Disbursements For Each Worker

Select a worker and on the Action Pane, click Personal information > Bank account disbursements. Select the Remainder field if the remainder of the payment is allocated to this account. Only one account can have this selected. Enter the amount currency if a specific amount is allocated to the account. Select the Prenote Status field to indicate the status of the Prenote. The field must be removed after validation by the bank for the employee to start receiving payments through direct deposit.

Payroll Journal Must Exist In General Ledger

If a Payroll journal does not already exist, create a new one in General Ledger > Journal Setup > Journal names with the Name: Payroll, Description: Payroll Journal. The correct Voucher series for Payroll journals

Payroll Journa

Payroll Journal In General Ledger

 

 

 

 

 

Electronic Method Of Payment Field On The Payment Issuance Tab Of The Payroll Parameters Page

In Payroll parameters, select the Payroll – Electronic Method of Payment on the Payment issuance tab. Payroll > Setup > Parameters > Payroll parameters > Payment issuance tab. In the Electronic method of the payment field, enter or select a value.

Payroll Parameters

Payment Issuance Tab Of The Payroll Parameters

 

 

 

 

 

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