Greenstone offers a customized advanced graphic report that will create the ACH file that the banks require for direct deposits. This program is custom written for each company.  To find out more about this product and its cost please contact your Sales Representative.

How it Processes:

• Direct Deposits generally create zero dollar checks if 100% of the check amount is being distributed to an employee's bank account(s). See this PAYROLL CHECK REGISTER to understand how the checks will look.
  Note the Yellow Amounts are the direct deposits.
  Green amounts are actual written checks.
  Turquoise is the overall net pay they received after taxes/deduction.

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• These zero-dollar checks should (if integrated with Bank) flow to a 'dummy' payroll bank account. This is where using name id types would have to you doing payroll in two runs. One for checks hitting one bank code (PP in this example.) One for direct deposits (ZZ in this example.)
  These transactions will automatically be flagged as reconciled and will have a Reconcile Date recorded on them.
  So, in the example above CHECK NUMBER 000763 & 000765 will post a zero-dollar check to the ZZ bank while the other checks post to the PP Bank.

• When SJI is run, the Direct Deposit amounts will be picked up by the 'BD' (Direct Deposit) code. This code should be directed to a Direct Deposit Withholding account in the ledger.  This could be a liability or a contra asset account in the cash section of the financial.

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• After each payroll run, enter a manual withdrawal in bank coded to the BD – Payroll Direct Deposit withholding ledger account.  This will lower your bank account by the amount of funds that you paid to the employee by direct deposit.  The “dummy bank”  will forever be at zero.
  Technically, you could keep this in the same bank code as your regular checks, but you still must make a manual withdrawal to remove the BD – direct deposit funds from your bank.

• Run the payroll > Report Manager > advanced reports > User-defined > Direct Deposit file creation report. This report is customized to your bank system. It may need to be purchased through report customization.
  This will create a file that can be uploaded to your bank’s website. 

Example Direct Deposit file – matches paycheck report above.

Setup:

Before going through these instructions there is some preliminary setup:

Name/Address Setup:

1. Each BANK that is receiving a deposit must be setup as a name/address entry.  Recommend setting up a unique name id type in Nam > setup > name id type that is for BANKS.  This could be for Lienholders or for Employee Direct Deposit Banks.  But something that allows you to exclude it from other reports.

2. Setup another name id type that separates the employees that get all their check in direct deposit versus those that still get a written check that they must deposit.  We recommend this so you can separate your employee hour entry into the direct deposit employees and the written check employees.  We do this so that you can drive the direct deposit employees to the direct deposit AGRIS bank account and the written checks to the actual bank account they pull from.

3. On every employee that is going to do direct deposit update the name id type to the new name ID code for direct deposit employees.

BANK Setup:

Setup a Bank Code in AGRIS Bank that will have Zero Dollar net checks posted. The net check comes out to zero as the direct deposit amounts act more as “deduction” codes to the check.

PAYROLL Setup:

Setup the Direct Deposit banks under AGRIS > PAY > Setup > employee Codes > Direct Deposit Codes
Each bank that will receive funds into an employee’s account must be defined with their routing code and transaction code.
The Bank Transaction code of 22 is the ACH Transaction codes for a Credit and does need to be entered under the Bank Routing #.

Add direct deposit info to Employee record making sure to enter 'Y' under the correct Pay Frequency for each direct deposit coded entered 

Ledger Setup:

Set up a Liability account for the BD-Direct Deposit Transaction code to post to. 
LDG > Maintenance Options > Chart of Accounts.

SJI Setup:

SJI > System Accounts > Payroll System Accounts.
Choose the BD transaction code  for Bank Direct Deposits.
Enter in the account that was just created in ledger.

EACH PAYROLL

Again, you will run each payroll in two runs.  One for employees using all their check to direct deposit.  You can print a remittance or plain paper check for them.

Then run the payroll again for the employees receiving a written check they must take to the bank to cash.  This will use an actual check form with the MICR coding printed on the checks.

What occurs when I run payroll?

A zero check/paper form will be issued to the employee.
It is very important to remember that this process will NOT transfer the money from your actual bank account and into the employee's account. This just keeps track of the process within your accounting system.

*After running payroll, alert your bank that the transfers need to be made by providing a report/file with the necessary information. When the money has been taken from your account make a manual withdrawal from your bank in the Agris Bank package. Code this withdrawal back to the Direct Deposit Liability account to create a wash.

Contact your bank for more information on the format they require. Greenstone offers a customized advanced graphic report that will create the ACH file that the banks require for direct deposits. This program is custom written for each company.  To find out more about this product and its cost please contact your Sales Representative.