If you are manually sending ACH files to your bank for processing direct deposit, utilizing the Pre-Note process will ensure that your employees’ bank account information is correct. This will prevent delays in the bank processing your direct deposit submissions. After you complete the steps for the pre-notes field, scroll down to find the instructions for processing payroll for direct deposit. You will need to use the pre-notes information during those steps.
Processing Pre-Notes for Payroll Direct Deposits
pre-note sent: no
When you first set up an employee for Direct Deposit in Employee Maintenance, the Pre-Note Sent field will default to No.
- Open Employee Maintenance.
- On the Main tab, check the Direct Deposit box.
- On the More menu, choose Direct Deposit.
- Fill out the employee’s bank account information and direct deposit options; leave the Pre-Note Sent field defaulted to No.
If you process a Payroll after completing the above steps and before completing the next steps, those direct-deposit employees with a Pre-Note Sent status of No will receive paper checks.
Pre-Note Sent: yes
Once all applicable employees are set up for Direct Deposit, follow the below directions to generate a test file and send it to the bank.
- This will automatically update the employees’ Pre-Note Sent fields to Yes and populate the Pre-Note Date field.
- The bank will get back to you (usually within 3 days) with any incorrect bank account information. If they do, update the information on the Employee Maintenance Direct Deposit screen and re-perform the below steps.
- Open Payroll > Direct Deposit > Pre-Note Selection Register.
- Enter the date you would like the Pre-Note Sent field to be populated with.
(It is recommended that this date be two weeks in the past; this will avoid any delays in the employees’ final direct-deposit approvals.)
- Print and review the Pre-Note Selection Register.
If you have Paperless Office enabled, the above PDF will appear; when finished reviewing, click x to close the PDF.
- If the register’s information is correct, answer Yes to the below question.
If the register’s information is not correct, answer No to the above question, fix the incorrect data in the Employee Maintenance > Direct Deposit screen, and repeat Steps 3 and 4.
- Open Payroll > Direct Deposit > Generate Pre-Note ACH File.
- Make any applicable changes to the below options and click Proceed.
- Review the information in the Direct Deposit ACH File Listing.
If you have Paperless Office enabled, the above PDF will appear; when finished reviewing, click x to close the PDF. Otherwise, a paper copy will print and the screen will clear.
- In File Explorer, browse to the Direct Deposit folder; the file will appear with the following naming:
Bank Code + mmdd + 000 (or001, 002, etc. depending upon how many files were produced on the same day)
Example: Bank Code is D, date is 12/2, and this is the first file created today:
- Send the file to the bank according to their instructions (email, web portal, etc.).
If you process a Payroll after completing the above steps and before completing the next steps, those direct-deposit employees with a Pre-Note Sent status of Yes will receive paper checks.
Pre-note Sent: Approved
If the bank does not respond within 3 days of sending the Pre-Note file, the employees can be marked as approved for direct deposit by following the below directions.
- This will automatically update the employees’ Pre-Note Sent fields to Approved and repopulate the Pre-Note Date field with the Pre-Note Approval date.
- All subsequent Payroll runs will result in the employees being paid by direct deposit rather than by paper check.
- Open Payroll > Direct Deposit > Pre-Note Approval Register.
- In the following screen:
- Enter the original Pre-Note Sent date.
- Enter a Pre-Note Approval Date of ten days after the Pre-Note Sent Date.
(It is recommended that this date be two weeks in the past; this will avoid any delays in the employees’ final direct-deposit approvals.)
- Click Print.
- Review the information in the Payroll Pre-Note Approval Register.
- If the register’s information is correct, answer Yes to the below question.
If the register’s information is not correct, answer No to the above question, fix the incorrect data in the Employee Maintenance > Direct Deposit screen, and repeat Steps 2 and 3.
The next Payroll will result in direct deposit stubs being printed and/or emailed (provided you have selected this option in the original Direct Deposit setups) and the employees’ bank accounts being debited.
Processing Payroll for Direct Deposits
The following instructions assume you are manually sending ACH files to your bank for processing direct deposit. If you are using the Sage Direct Deposit service or another Direct Deposit service, the steps following the check register update will be different and can be obtained from the provider.
Direct-deposit employees can be paid in the same Payroll batch as non-direct-deposit employees.
set up employees for direct deposit
- Open Payroll > Main > Employee Maintenance and choose the employee.
- On the Main tab, check the Direct Deposit box.
- In the upper right corner, click the More icon and choose Direct Deposit.
- Answer Yes to the below question:
- Enter the following information:
- Employee’s bank account and routing number, bank account type and description
- Choose a distribution method
- Percent/Amount
- If you chose a Percent distribution method, enter percentage of pay for this bank account
- If you chose Fixed Amount distribution method, enter the dollar amount for this bank account
- Enter additional bank account lines as needed. If your Payroll setups require the full pay amount to be distributed, the percent fields must total 100% or the fixed amounts must meet or exceed the employee’s pay amount.
TIP: If a dollar amount is to go to one or more account(s), and the remainder is to go to another account, enter the fixed-amount accounts first, with Fixed Amount distribution methods, followed by the “remainder” bank account with a Percent of Net Amount distribution method and a percentage of 100.
- Refer to the instruction above for information about how to fill out the Pre-Note fields.
- Click Accept.
- Click Accept to close the employee record.
payroll data entry
Payroll Data Entry and Tax Calculation will be performed using the same steps as if you were not processing Direct Deposit. The following fields will appear and can be edited:
Pay Cycle
Payroll Data Entry Header
Data Entry Audit Report
Check printing
- Open Payroll > Main > Check Printing.
- After verifying the information on the print screen and inserting your check forms, click Print.
- TIP: If you don’t have any employees who qualify for printed checks, you can bypass the check printing screen by clicking the Direct Deposit Stubs icon.
- Checks will print for the following employees:
- Those not set up for direct deposit
- Those with a Pre-Note Sent value of No or Yes
- Those with a Pre-Note Sent value of Approved and a Pre-Note Date less than 10 days in the past
- When prompted, remove your check forms from the printer and click OK.
- The Direct Deposit Stub Printing screen will appear:
- Change the Effective Date to the date you need the bank to pay employees.
- If any employees are set up to receive emailed stubs, change the Paperless Office Output field to include an option that includes Electronically Deliver.
- Click Print.
- Click OK.
- Answer Yes to update the register if you are ready to do so; otherwise, answer No and update the register later.
When the register has been update, emails will then be sent to all employees who are set up for Paperless Office email delivery of direct deposit stubs.
If you need additional assistance in processing pre-notes in preparation for payroll direct deposits, or need help in processing payroll for direct deposits in Sage 100 reach out to RKL eSolutions.
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