Electronic payment in AX

What payment methods are used most frequently? Companies make payments for outstanding invoices on using credit, cash in advance, bill of exchange, check and electronic payments. Check would be a method of payment of check. Electronic payment would be a method of payment of electronic such as an EFT, Wire. Promissory note would be a method of payment of promissory note.

In this article, we are going to look at Electronic payments in AX. Electronic payments are still commonly used for some transactions.

When Electronic payment type is used, AX performs bank validations. These validations are skipped if you use other payment types.

Before we switch to the generation of electronic payment you must perform a couple configurations.

Configure a bank account for electronic payments

Setup our bank account

Navigate to Cash and bank management > Bank accounts > Switch to Details View

Set Company statement name

Set Company ID

Note: These fields are editable only if Primary address is USA. You need to set up a valid address.

BankAccount setup for electronic payment

Create method of payments for electronic payment

Navigate to Accounts payable> Setup > Payment > Methods of payment

Electronic method of payment

Export format (e.g. NACHA(US) – is typical CH file format

Return format: if you are going to receive a return file from the bank once they’ve processed the payment and import that return file, you need to make sure that you have a file format that is selected within this setup. If you are going to create a payment transfer to process those payments that you have received from the bank, you need to make sure that that return format is created and set up.

Setup Payment specification – if the bank requires (it holds a little bit more information on the export format).

Payment specification

Create vendor bank account and Setup Vendor bank account

If you are going to send this information to a vendor bank account, AX needs to know what bank account it’s going to send to. AX will hold information such as a routing number.

Navigate to Accounts payable> Common > Vendors > All vendors > Switch to Details View

Create a new bank account by clicking Bank account button.

Specify Routing number, Bank account number and Currency.

Select created bank account as Default bank account.

Specify Electronic payment in the Method of payment field.

Vendor bank account for electronic payment

Create a payment journal using the electronic method of payment

Click Accounts payable > Journals > Payments > Payment journal

Select a journal, and then click Lines. Method of payment should be for electronic payment.

Electronic payment

Generate electronic payment file

Click Functions > Generate payments. The Generate payments form is displayed.

Select the Export format option, and then, in the Export format field, select a format for the export file.

–or–

Select the Payment method option, and then, in the Method of payment field, select a method of payment that uses the appropriate format for export files.

Click Dialog.

In the form that is displayed, enter the information that is required for the payment format.

Generate payments

Click OK.

In the Generate payments form, click OK.

Generate payment message

Electronic payment file

Send payment file to the bank

And there are a couple different ways that the bank might get in touch with you. They may send you a return file, or they may just send you a payments list, and that would just be a paper list of the payments that you can look at and then you can determine how to process those. Do you want to go back into your payment journal and then just post all of those that we received from the bank? If they send you an actual return file, you can then import that into AX and post payment that way.

Once you generate a file, typically AX is going to set Status to Sent.

Electronic payment Status Sent

Now, if the bank comes back and they have rejected that payment, you can come into payment and change status to rejected.

Use the Payment journal to process the electronic payment after bank approval

If the approve we can just Post payment journal

Post the electronic payment

Use the Payment transfer to process the electronic payment

Click Accounts payable > Journals > Payments > Payment transfer – all sent payments are displayed in a separate journal.

Payment transfer

This form allows you to import the return file vendor by clicking Return file – vendor. Where you need to specify method of payment of electronic with the configured return file format.

Return file - vendor

AX will ask you to upload your file.

Return file - vendor path

Once you do that, AX will bring it into a line and then you can post.

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