Page tree
Skip to end of metadata
Go to start of metadata

 Please click here to view a short video on how to create an ACH Source.


ACH Source

The purpose of this program is to create informational records for the school districts who choose to use direct deposit. These records are used to create a submission file which will be sent either to a local bank or directly to a Federal Reserve Bank. The bank will use the information as a means of verifying which employee's account is to be credited. It is critical that the bank for each district be contacted to obtain the necessary information for processing direct deposit.

The ACH Source option is used to enter all banking institution information in order for the direct deposit transmission process to be completed. This is a system manager only program

Creating an ACH Source record

From here, you can +Create either a Payroll ACH or a Health Savings Account ACH Transfer from the Transfer Type option. Once all data is entered, select Save to accept or Cancel to not create the ACH Source. 

Field Definitions

  • In the Transfer Type field select from the following:
    • Payroll ACH Transfer Data
    • Health Savings Account ACH transfer data
  •  In the ACH Transfer Code enter the three digit (including any leading zeroes) transfer ID to be used for the ACH transfer ID. The ACH transfer type along with the 3 digit transfer ID make up the total identifier (key) for this ACH transfer header record. 

ACH Header Record Information 

  • In the ACH Header Record Information section, enter the Originator Name. This will be the local bank name if the tape is being sent directly to a federal reserve bank or the fiscal agent name if the tape will be processed by a local bank. The originator initiates entries into the Automated Clearing House Network though an originating financial institution. This may be a local bank, a district fiscal agent, etc. The institution with whom the transfer will occur can assist in what should be entered here.
  • Enter the Originator Routing Number. For NACHA compliant tapes, this may be the ACH number of the processing bank. Some banks may require the fiscal agent or districts federal tax id in this field. Contact the bank for the correct value. This field will be used to make up the last 9 characters of the Immediate Origin on the ACH file header record.
  • The Originator Type makes up the first character of the Immediate Origin on the ACH file header record. Banks adhering to the NACHA rules will require a space in this field. At the bank's discretion, they may require another value in this field. Refer to the processing bank for the proper code. In the Type field, enter the following:
    • Space
    • 1
    • 9
  • In the Destination Name field, enter the Federal Reserve Bank if the tape is sent directly to a federal reserve bank or the local bank's name if the tape will be processed by a local bank.
  • The Destination Routing Number field makes up the last 9 characters of the Immediate Destination on the ACH file Header record. Enter the ACH number of the destination bank or the Federal Reserve Bank. Contact the processing bank for the correct value.
  • The Destination ID Modifier is provided in the ACH file header record. It permits multiple files that are created on the same date and between the same participants to be distinguished. In the Destination ID Modifier field enter either A-Z or 0-9.

Batch and Detail Record Information

  • In the Organization Name field enter the name of the district (up to 16 characters) that is transmitting the transactions. This field is used for identifying the source of the entry/transaction and also used as a description for the receiver. This is the Company Name on the ACH file batch header record. This will also appear as part of the information on the employee bank statements.
  • The Organization ID Designator field offers the following options:
    • 1 - IRS Employer Identification Number (EIN)
    • 3 - Data Universal Numbering Systems (DUNS)
    • 9 - User Assigned number
  • In the Organization ID Number field, enter the district's ID number. The district's Federal tax ID (EIN) number is normally used as the District ID Number. The processing bank may require their own customer ID number. This field makes up the last 9 characters of the Company Identification on the ACH file batch header record.
  • In the Originating DFI field, enter the first 8 digits of the routing number for the Depository Financial Institution (DFI) originating the entries. This field makes up the Originating DFI Identification on the ACH file batch header record.
  • The Originating Status field offers the following options:
    • 0 - ADV file prepared by an ACH operator.
    • 1 - Identifies the Originator as a depository financial institution which has agreed to be bound by the ACH rules.
    • 2 - Identifies the Originator as a Federal government entity or agency not subject to the ACH rules.

In most cases, the Originator status should equal 1. This field makes up the Originator Status Code on the ACH file batch header record (Position 41).

  • In the Entry Description field enter a description (up to 10 characters) that will be used when displaying back to the Receiver. If this field is left blank, the default, PAYROLL, will be used. This field represents the Company Entry Description on the Batch header record.
  • In the Trace Routing Number field enter the first 8 digits of the routing number of the Originating DFI. In some cases the processing bank may require a different routing number be used on the detail PPD entries than what is used on the Batch header record. This routing number may not be the same as the routing number entered for the Originating DFI. The district trace routing number makes up the first 8 characters of the Trace Number on the ACH file PPD Entry Detail Record.
  • In the Number of batches field enter the type of file to be generated for ACH submission:
    • S - Single batch file
    • M - Multiple batch file
      • Receiving banks have different requirements pertaining to the number of batches that may be in the ACH file they receive. Some banks require what they refer to as a Balanced File. This type of file contains mixed debit and credit entries in a single batch. The multiple batch file will place all credit entries into a batch and all debit entries into a batch (resulting in 2 batches) within the ACH file. ITC should contact receiving bank to determine whether they expect a single batch file or a multiple batch file.

 

The Direct Deposit Clearing fields are generally used only when a district has a third party originate their ACH transfer and the third party requires the district have a clearing account at their financial institution 

Direct Deposit Clearing

  • In the Credit Account Status field, enter one of the following:
    •  Yes, create a live credit transaction - 
    •  Yes, create a pre-note credit transaction.
    •  No, DO NOT create a credit transaction.
  • In the Debit Account Status field, enter one of the following:
    • Yes, create a live debit transaction.
    • Yes, create a pre-note debit transaction.
    • No, DO NOT create a debit transaction.
  • In the Account Number field, enter the account number for the direct deposit clearing account. 
    • If Credit or Debit Account Status is set to Live or Pre-note , then an Account number is required.
  • In the ACH Number field, enter the routing number for the bank where the direct deposit clearing account resides.
    • If Credit or Debit Account Status is set to Live or Pre-note , then an ACH number is required.
In the Payroll Clearance Information, enter payroll debit and direct depository clearing information. Some financial institutions request no district debit information be entered. The financial institution should be contacted to determine if the data for the next three fields is needed. 

Payroll Debit Clearance

  • In the Status field, choose from the following:
    • Yes, create a live debit transaction
    • Yes, create a pre-note debit transaction
    • No, DO NOT create a debit transaction.
  • In the Account Number field enter the district's account number with the banking institution that is to be debited.
  • In the ACH Number field, enter the routing number for the bank at which the payroll clearance account is located.

Warning Messages

Error -  AchSource.directDepositClearingCreditStatusAchNumberValid: Direct Deposit Clearing ACH Number is required when Direct Deposit Credit Account Status is set to Prenote or Live (Value: 'false')

Error - AchSource.directDepositClearingCreditStatusAccountNumberValid: Direct Deposit Clearing Account Number is required when Direct Deposit Credit Account Status is set to Prenote or Live (Value: 'false')

Error -  AchSource.directDepositClearingDebitStatusAchNumberValid: Direct Deposit Clearing ACH Number is required when Direct Deposit Debit Account Status is set to Prenote or Live (Value: 'false')

Error - AchSource.directDepositClearingDebitStatusAccountNumberValid: Direct Deposit Clearing Account Number is required when Direct Deposit Debit Account Status is set to Prenote or Live (Value: 'false')


Mass Change

To add the Mass Change option, please click on the Mass Change documentation link to find the How to Steps: Mass Change



Report Creation

To create a report from the Grid, please click on the Report documentation link to find the How to Steps: Report


 

 

 

 

  • No labels