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ACH Settings

Intro – ACH #

The Automated Clearing House (ACH) is a secure and reliable electronic network used for financial transactions in the United States, facilitating direct transfers between bank accounts. It’s an efficient alternative to paper checks, credit cards, or wire transfers, known for its low cost and convenience. The ACH network is managed by Nacha (National Automated Clearing House Association) and processes billions of transactions annually.

There are two primary types of ACH transactions:

  • ACH Debit (for customer collection): An ACH Debit is initiated by the payee (the party receiving the money) to “pull” funds from the payer’s bank account. This typically requires prior authorization from the payer. Acci.cloud provides ACH Debit capability through ACH Collections.
  • ACH Credit (for payments and employee direct deposit): An ACH Credit is initiated by the payer (the party sending the money) to “push” funds into the recipient’s bank account. This is widely used for disbursements. Acci.cloud provides ACH Payments for vendor payment and Direct Deposit for employee payroll.

Create a New ACH Bank Account #

Before you can make payments or collect payments through ACH, the system requires you to set up an ACH bank account. You need to choose account(s) with a bank account type in your chart of accounts to represent your physical bank account, and the bank must provide ACH service.

When you make ACH payments or direct deposits, the selected account will be credited. Conversely, it will be debited when you perform ACH collections. This ensures your chart of accounts synchronizes with all ACH transactions, whether they are ACH debits or ACH credits.

  • Go to ACH on the left sidebar, and select ACH Settings
  • Click Add New button.
  • Fill in the following fields
    • Bank Account in Chart of Accounts: Select account from the list. Please note that you cannot create a new account here in ACH Settings. Go to Accounts -> Chart of Accounts, create new debit account with a bank account type. After account preparation complete then come back to ACH Settings and proceed.
    • Bank Name: Enter bank name. It is up to 23 characters.
    • Bank Account Number:  This is your bank account number.
    • Bank Account Type:  Checking or saving.
    • ABA Routing Number: It is a 9 digits routing number of your bank or financial institution that will directly receive the ACH file for processing.
    • Immediate Origin: It is typically your EIN leading by blank. Or the company Id assigned by your bank. It is up to 10 digits.
    • Originating DFI: It is your ABA routing number without last digit. It is 8 digits.
    • Company Name: It is up to 23 characters.
    • Company Short Name: The short company name will be printed on receiver’s statement. It is up to 16 characters.
    • Company Id: This is assigned by your bank. It is up to 10 digits.
    • Discretionary Data: For your company internal use. It could be blank or your bank account. It is up to 20 characters.
    • Entry ID Number: For your company internal use. It could be blank or your bank account. It is up to 15 characters.
    • Offset Record Required: Check with your bank if they need offset record or balance ACH.

 

  • Click Save
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