ACH Prenote processing in AP release 9.

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Brief Summary
Both EFT and ACH are paperless payment formats. Both require that you create
an electronic file that contains the necessary bank or clearinghouse information.
The electronic layout and data requirements for EFT and ACH payments are set
up for PeopleSoft Payables when you set up banks and counterparties.
Note. Before sending EFT or ACH payments, you can establish a prenote test to
verify that the data is received in the correct format
EFT and ACH Prenotes
PeopleSoft provides the availability of prenote verification for EFT and ACH
payments. Your bank can verify the accuracy of the electronic payment data (for
example, bank transit number and account number) in a test transaction before
the actual transaction occurs. Prenotes are available for PPD, CCD+, and CTX
payment formats.

This diagram shows the process flow for EFT and ACH payments:(Picked from
PeopleDocs)




Bank Payment method

Vendor Setup




If the Prenotification Required check box is selected and the prenote status is New,
you cannot save the vendor unless you specify either Electronic Funds Transfer or
Automated Clearing House as the payment method on the Additional Payables
Options collapsible region on the Vendor Information - Payables Options page.



Once the prenote is created, during the next pay cycle that includes EFT or ACH
payments for the vendor's bank, the system changes the prenote status to Pending,
and populates the prenote Date field with the date on which the prenote was
created.




Create a voucher for a different vendor with the same payment/Bank
information

Paycycle Setup




To confirm a vendor for EFT or ACH payment manually by clicking the confirm
button or by using autoconfirmation


Note:
You can use either the Pay Cycle Manager or the PeopleSoft Financial Gateway
for formatting the prenote output file to the bank. If you generate the output
file using pay cycle, there is no prenote error notification from the bank.
If you generate the output file using PeopleSoft Financial Gateway, you receive a
prenote error notification from the bank, if any error exists. PeopleSoft Financial
Gateway creates a prenote error message and sends it to PeopleSoft Payables.
PeopleSoft Payables:
1. Inserts the prenote error to the Pay Cycle Error table
(PYCYCL_ERR_TMP).
2. Updates the prenote status in the Vendor Pay table (VENDOR_PAY) from
P (pending) to R (rejected).
3. Sends an email notification to the user.
This function requires that you specify a user ID on the Payment Selection
Criteria - Preferences page as well as defining a valid email address on the
User Preference page