WS: 04: How to Set up and Process Electronic Funds Transfer (EFT) and Electronic Data Interchange (EDI) 820 Payments (Doc ID 1080226.1)

Last updated on DECEMBER 20, 2022

Applies to:

Purpose

Overview

You can use either electronic payment process (EFT or EDI) to automatically update your supplier's bank account with your payments. To do this you send a table to your bank in either of the supported World formats (CTX or PPD) that contains the information they need to pay your suppliers (for EFT processing) or you send the table to your trading partner (for EDI processing). You process electronic payments exactly as you do any other automatic payment. The system automatically creates the payment records at the time it creates the table for your bank and assigns them a document type of PT to identify them as electronic payments.

Both EFT and EDI deal with transferring money from one account to another in an electronic way. One of the central functions of the banking system, the Automatic Clearing House (ACH) helps in funds transfer between accounts and different banking institutions.  The different banks are connected through Automatic Clearing House. Electronic transfers, direct deposits, and debit card payments and electronic payments are normally processed through the Automatic Clearing House.

The following tasks comprise the process to generate and transmit electronic payments:

• Reviewing prerequisites.
• Setting up the system.
• Processing EFT and EDI Payments

This document provides the detailed steps on how to set up and process Electronic Funds Transfer and Electronic Data Interchange (EDI) 820 Payments.

Scope

This document is appropriate for the accounts payable management team and staff.

Details

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