Why Company Bank Records Matter for Electronic Bank Payments
The question is why you should treat Company Bank Details as a systems artifact rather than an ad hoc data entry task. What’s at stake here is file validity, on-time payments, and auditability: incorrect or incomplete bank records produce rejected ACH files, failed reconciliations, and manual remediation work that flows into AP and treasury.
First principles tell us that a bank record is a mapping layer between your ERP ledger and the payment rails. So what this means operationally is simple: configure fields to match the format your bank expects, validate them before you go live, and make the record the single source of truth for payment automation and batch creation.
How Company Bank Records Map to EBP File Formats
Company Bank Details in Electronic Bank Payments (U.S.) are organized so each field corresponds to a segment, header, or control element in an ACH file. Understanding that mapping prevents common mistakes:
- Immediate Origin / Company ID (10 digits): Appears in ACH file headers. Banks often expect a 10-digit company or tax ID; pad or trim to match bank instructions.
- Routing Number: Drives the MICR transit field. Validate checksum (9-digit ABA routing) before using.
- Account Number and Account Type: Placed in payment detail records; account type (checking/savings) matters for format/validation.
- EFT / DD Templates (ACH-CCD, PPD, CTX): Choose template based on transaction type and the receiving party; CTX allows multiple addenda and is used when you need remittance data with payments.
- Create Balanced Files / Pad Blocks: Some banks require a contra balance entry or fixed-length files padded with ‘9’ records. Configure these to satisfy bank-side validators.
Required Fields and Where They Flow
Group your attention by subtab so you can complete configuration in predictable steps:
- Main: Name (internal ID), GL Bank Account (sets subsidiary and currency), Legal Name (company legal entity for files), Print Company Name, default marker, and file storage options (file cabinet location and file name prefix).
- EFT Template Details: Immediate Origin, Routing Number, Account Number, Immediate Destination Name, Company ID, process flags (Process Bills Automatically, Hide Transactions) and the AP register to post to.
- DD Template Details: Same core fields plus Bank Account Type, Create Balanced Files, Add Pad Blocks and any pad character rules.
- Batch Details: Saved Search for included items, Payment Schedule for automation, Batch label and notification recipient.
Step-by-Step: Create a Company Bank Detail
Follow these implementation steps to avoid rework:
- Create the record with a consistent internal naming convention (e.g., US-ACH-PrimaryBank-Subsidiary).
- Select the GL Bank Account. Confirm the subsidiary and currency are set automatically and match your AP operating currency.
- Populate Main identification: Legal Name, Print Company Name, mark default if used widely, and set File Cabinet Location ID and File Name Prefix for traceable file storage.
- Complete the EFT or DD template details. Ensure Immediate Origin and Company ID are formatted to 10 digits and the routing number passes an ABA checksum test.
- Choose the correct EFT template (CCD/PPD/CTX) based on who receives the funds and whether detailed remittance is required.
- Configure Batch Details: attach the Saved Search that selects bills/expenses, set schedule if you want automatic batch creation, and assign an email recipient for notifications.
- Run a test export in a sandbox with minimal test vendors and a bank-provided test routing/account combination. Verify the generated file against bank specs and the ACH validator.
Validation Checks and Common Pitfalls
These checks reduce rejects and manual fixes:
- Validate routing numbers with checksum logic; mistakes here cause rejects at the bank.
- Enforce a 10-digit Company ID format. If your tax ID is shorter, pad per bank guidance rather than truncating.
- Confirm account number length and allowed characters; strip formatting characters before saving.
- Check template choice: using PPD for business-to-business payments can strip remittance details you need; choose CTX when in doubt and the bank supports it.
- Enable Create Balanced Files only if your bank or internal process requires a contra line for balanced file posting—otherwise it can produce unexpected accounting entries.
- Use Add Pad Blocks only when the receiving bank requires fixed-length files. Excess padding can be harmless; missing padding can trigger rejection.
Operational Considerations: Automation and Auditability
Design the record set to serve both automated workflows and audit trails:
- Mark one bank as default for batch creation, but document exceptions and approval steps for using alternate bank records.
- Use Saved Searches for deterministic batch membership; this makes troubleshooting reproducible when payments are missed.
- Store exported files in a controlled File Cabinet Location and include a file name prefix that links files back to batches and dates.
- Log who changed bank records and require a change control ticket for production edits. Bank details drive cash movement; treat them as a sensitive configuration item.
Example: Common Setup for a Mid-Market Subsidiary
For a typical subsidiary paying suppliers via ACH-CCD:
- Name: US-ACH-SubsidiaryA
- GL Bank Account: Bank GL for Subsidiary A
- EFT Template: ACH-CCD
- Immediate Origin/Company ID: 10-digit value (padded if necessary)
- Routing Number & Account Number: validated and unformatted
- Batch Details: Saved Search selecting Approved Bills, Weekly Payment Schedule, Email Recipient = Treasury
Ultimately, what this means in practice
Ultimately, treating Company Bank Details as a small payments system prevents operational surprises. A precise setup reduces bank rejections, speeds reconciliations, and supports automation.
Takeaway: validate formats, choose templates to match payment intent, centralize file storage and batch selection, and lock changes behind a control process. That combination delivers predictable, auditable ACH file generation and fewer manual interventions.