DEFINISI ISSUE ACH PAYMENTS WITH REMITTANCE DETAIL
Larger companies have been able to fund invoices with Automated Clearing House (ACH) transfers for a few time. Their accounting systems create a report of the amounts to be paid and link this to a file containing the banking information for his or her suppliers. This file is delivered to the organization bank, which processes ACH payments overnight that appear in the financial institution accounts of suppliers by the following morning. One problem: The suppliers don’t have any supporting detail for the payments with the exception of the name of the initiating party, which appears in the info transmitted by the bank. The result is just a callback to the business, asking for the detail therefore the supplier can properly post the receipt information in its accounting system. This extra contact essentially eliminates the time saved by the originating company when it first set up the ACH payment system. Some companies have created something that issues separate payment notifications by mail, but this extra system requires manual labor and results in supporting detail that arrives in the mail days later compared to the payment.
A great alternative for larger companies is the PayBase Electronically Sent Payment module, made by Bottomline Technologies (www.bottomline.com). This software could be linked through a custom interface to any existing accounting package. It makes standard files from accounting records that meet ACH transaction formatting standards, automatically transmits these records to the business bank, and—the important thing part—automatically sends remittance details to the consumer by e-mail or fax. Given the slight delay in the transfer of ACH funds, which means the remittance detail might actually arrive at the supplier prior to the payment, thereby giving the supplier warning to check its bank account for incoming funds another morning. This application can be utilized not just for payments to suppliers, but and also to employees for both payroll and expense reimbursements. However, this is a pricey software package that requires the construction of a personalized interface between the program and a company’s existing accounting software package. The full total price puts this best practice out of reach of most smaller companies.