Process Direct Deposit for Payroll Checks

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How to Process Direct Deposit for Payroll Checks

This topic will cover the topic of creating (processing) direct deposit and exporting your direct deposit file. This help topic assumes that you have already created your paychecks. The next step is to upload the file to your bank.

Usage

Use this form to create a file that contains checking and banking information for the purpose of direct deposit. The direct deposit file is specially formatted for your bank. Their system will recognize it, and your employees will receive their payroll via an ACH transfer that your bank handles.

IMPORTANT: Direct Deposit is something that you must sign-up for with your bank. You must then setup direct deposit in Total Office Manager. There are links to each direct deposit related help topic at the end of this article.

Direct Deposit Processing Form Access

This form is accessed through the Direct Deposit Processing form.

From the main menu, click Banking | Direct Deposit | Transaction List | Direct Deposit List | Process Checks

Field Definitions

Bank	This is a list of your banks as setup in Total Office Manager’s chart of accounts. This is the bank where the money is drawn from.
Effective Entry Date	This field refers to the date that you want to use for the direct deposit transactions. In other words, if you have created several checks, this date will be used on those checks (not the date the checks were created).
Entry Description	This field is optional. You may enter a very short description of the direct deposit. An example might be “Payroll”. By direct deposit rules (not ours), you are only allowed 10 characters.
Button Definitions
Process	Click this button to produce the direct deposit file (AKA: ACH file). The file is stored in your Total Office Manager database. You still need to export it.
Export File	Click this button to export the file to your computer. This is the file that is sent to your bank.
View File	Click this button to view the file you created. Most users will not need to view the file unless you are troubleshooting problems.

Step-By-Step Direct Deposit Processing

The first step is to create payroll and/or checks that need to be deposited. The rest of this topic assumes you have done this.
Open the form as noted above.
Using the Bank selection box, select the bank that you wish to draw the funds from (where the money will come from).
In the Effective Entry Date field, enter a date for the transactions to be recording on (your choice for the date of the transaction).
In the Entry Description field, enter a very short description of the transaction.
Click the Process button when you are ready to produce your direct deposit.
Click the Export file to actually create the file you will send to your bank.