MIP TRICK OF THE MONTH

Save Time and Money by Issuing Vendor Payments Electronically

 

This month, we wanted to share a functionality available in MIP that has helped many of our clients in the current COVID-19 crisis.

Working remotely has created a challenge in making vendor payments, and staff aren't able to just walk down the hall to get checks signed and mailed. The Electronic Funds Transfer module allows the payment of vendors through familiar AP processing and a simple file upload to your secure bank website at the end of the process. 

An Overview of the EFT Module

The Electronic Funds Transfer cash flow management module helps your organization save time and money by issuing vendor payments electronically. Electronic payments are a safe, inexpensive, and predictable payment alternative to paper checks. The Electronic Funds Transfer module is designed to complement the Accounts Payable module and seamlessly integrates with the General Ledger.

 

Electronic Funds Transfer Processing

  • Improve cash flow management – With Electronic Funds Transfer, you designate when payments are taken from your account, making cash flow predictable.
  • Easy to set up and use – Easily designate which vendors should receive electronic payments. Process electronic payments using the same easy-to-use select and pay processing method used for Accounts Payable checks.
  • Transmit payments directly to your bank – The Electronic Funds Transfer cash flow management module provides a terminal interface that allows you to dial and send your electronic payments from within the MIP Fund Accounting system.
  • Notify vendors of payment electronically – Send payment notifications via e-mail to vendors automatically, thereby saving staff time and effort as well as postage.

 

Fully Integrated with Other MIP Fund Accounting Modules

  • Simplify bank reconciliation – Quickly identify and clear electronic vendor payments in the Bank Reconciliation module.
  • Take advantage of full customization – Add the Forms Designer module and create secure custom layouts for your printed checks.

 

Electronic Funds Transfer

What it does: EFT allows the submission of electronic payment to vendors rather than having to mail a vendor a paper check. The file created during this process is an ACH file and the format is uniform throughout banking in the US so our ACH file format will work for the customer’s bank if it is in the US.

How it works: After the module is added in administration, you will enter your bank information at Admin > Setup Modules > Electronic Funds Transfer. You can also set preferences here, for instance to notify your vendors via email when the EFT payment is generated. In Accounting, you select on a vendor by vendor basis if they will receive payments via EFT on the Payment and Terms tab. Based on the selections here when it comes to payment processing, MIP will automatically run checks first and vouchers second if you do a payment run with vendors that differ in their payment methods.