Microsoft Dynamics 365 Business Central | How to Make EFT Payments to Vendors (Demo)

I want to show you how easy it is to make EFT payments to your vendors in Dynamics 365 Business Central. So we’re going to start with the payment
journal. I’ll create the remittance advice. We’re going to generate the EFT files. I’ll post the journal and then we’ll take a look at some of the setup involved so let’s get started.
Here’s my payment journal. I’ve already identified the vendor to whom I’m going to make this payment. We can look at the apply entries here. If I open that up, we’ll see that I’ve applied at least one invoice there and then I’ve specified the recipient’s bank account because this is going to go directly to his bank account/ so we want to make sure that we identify that if I scroll further over to the right here, there’s one other change I want to
do is I want to make sure that the bank payment type is electronic payment. So this is really similar to the same process that you would use to print a check but then it changes a little bit. So what I want to do is I want to send the remittance advice to the vendor I’ll go to bank, export it, brings up this dialog box right here. The payments coming from this bank account is going to be an email. I hit OK then Business Central is going to send an email to my vendor that has a remittance advice so that when he receives the payment into his bank account, you can identify what it’s for.
So once I’ve done that, the next step is to create the EFT files. So I go to the screen here, select bank account from which I want to make this payment.
It shows the payments that are going to be incorporated into the EFT file so let’s go ahead and generate that EFT file. Once that file is generated you then need to send that to your bank, here’s what the file looks like in my system.
Now, I’ve set it up with some information about the bank from which I’m sending it my vendors bank and the specific payment that I’m making today. So this is the file that I would then send to my bank. They would go ahead and put this into their system and the payment would be made through the ACH system to my vendor. Once I’ve generated the EFT file I can go ahead and I can post this journal and then I’m done. Now I’m using the October 2022 release and I found that the process has changed a little bit from prior years. So if you’re on that newer release this is what you’d be seeing. If you’re on an older release you’ll see something very similar.
This is an example of the remittance advice that’s sent from Business Central to your vendors. This is a standard out of the box form you can modify it if you want to. So let’s take a look at some of the setup I did for this demonstration. First of all I set up a bank account for this particular vendor. So if I go to related vender and the bank accounts I can see the bank account here that I set up and all I really need here is to set up the bank account number and the routing number for the transit number for that particular Bank. I then also specified that this is the one to use for electronic payments. Also at the vendor level I set up a document layout for the remittances and I put the remittances here and the key Point here is to identify the email to which the documents are going to be sent. I set up these three and I specified the email addresses to the right. Also at the company level for the bank account that I used I specified some of the transit information. You can see that information here I also have the account number up here.
So this was a quick demonstration of how to make EFT payments using Dynamics 365 Business Central. We started with a payment journal, created the payment, sent the remittance advice out to the vendor, then generated the EFT files that we would send to our bank and we looked at a few of the setup items.

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